What equity do Dragon's Den investors receive when they make a deal?

When Dragon's Den investors make a deal, they receive a share of the business in exchange for their investment.

This share is called equity. An entrepreneur may ask for a specific amount of money in return for a stated percentage of the company, allowing the Dragons to calculate the implied valuation. A Dragon can accept those terms, negotiate a different percentage or combine an offer with another Dragon.

Equity is not the same as a salary, grant or ordinary loan. A shareholder owns part of a company and may benefit if the business grows, whereas a lender normally expects repayment and interest without owning the business. The exact deal shown on screen can also be subject to later due diligence.

Viewers sometimes assume that a televised handshake guarantees completion. In practice, agreements may change or fail after financial, legal and commercial checks. The programme nevertheless presents the basic exchange clearly: capital for an ownership stake.