An entrepreneur generally offers equity in exchange for investment on Dragons' Den.
Equity means an ownership stake in a company. During a pitch, an entrepreneur usually states how much money is wanted and what percentage of the business is being offered. The dragons then judge whether the proposed valuation and opportunity are attractive.
A successful deal can involve negotiation: a dragon may offer the requested money for a different percentage, or several dragons may combine their investment. An entrepreneur can also reject an offer, and not every agreement discussed on television necessarily becomes a completed business transaction.
Equity is different from a salary, which is payment for work, and from a patent, which is an intellectual-property right. A franchise fee is a payment connected with operating under another company’s brand. The show’s signature negotiation concerns ownership of the entrepreneur’s business.