What do entrepreneurs offer investors in exchange for funding on the British show Dragon's Den?

On the British show Dragon's Den, entrepreneurs offer investors a share of their company in exchange for funding.

This share represents equity, meaning the investor receives an ownership stake rather than simply lending money at a predetermined interest rate. A pitch normally states the amount requested and the percentage of the business offered, allowing the dragons to assess the implied value of the company.

The negotiation can change the proposed terms. A dragon may offer the requested money for a larger percentage, combine with another investor or attach conditions to the deal. An on-screen agreement is not automatically the same as a completed investment, because due diligence and legal negotiations can follow filming.

This equity-based structure is a key distinction between Dragon's Den and programmes focused on grants, employment or ordinary bank loans. The dragons are presented as private investors who may contribute money, commercial experience, contacts and publicity. The entrepreneur therefore gives up part ownership in return for capital and, potentially, business expertise.