What do entrepreneurs usually offer Dragon's Den investors in exchange for funding?

Entrepreneurs on Dragon's Den usually offer equity in their business in exchange for funding.

Equity means an ownership stake. A contestant might request a stated amount of money and offer a percentage of the company, allowing the dragons to become shareholders if a deal is agreed. The implied valuation can then be calculated from the requested investment and offered percentage.

This structure is different from a salary, grant or ordinary television appearance fee. The dragons are considering commercial risk: they may contribute money, expertise and contacts, but they expect ownership and the possibility of a future return.

A televised agreement is not always the final legal deal. After filming, investors and entrepreneurs can conduct due diligence and renegotiate or withdraw. Nevertheless, equity-for-investment is the defining transaction presented in the programme's pitches.