What does a Dragon's Den investor usually receive in exchange for investing in a pitch?

A Dragon's Den investor usually receives an equity stake in exchange for investing in a pitch.

Equity means an ownership share in the business. When a Dragon offers money for a percentage of a company, the investor is proposing to become a part-owner rather than simply lending cash or paying a one-off fee. The value of that share depends on the investment amount and the valuation implied by the entrepreneur's proposal.

A pitch can involve negotiation, so the percentage requested by the entrepreneur may change before an agreement is reached. More than one Dragon may also join an offer, dividing the investment and the equity between them. An on-screen deal may still be subject to later checks and legal paperwork.

This is why the programme is different from a grant competition. The Dragons risk their own money and expect a possible commercial return. The entrepreneur receives capital, expertise and contacts, while giving up part of the ownership and potentially some influence over future decisions.