In Dragons' Den, the ownership percentage entrepreneurs offer investors in exchange for funding is called equity.
Equity represents an ownership interest in a company. When a founder offers a Dragon, for example, 20 percent of a business for a stated investment, the proposed deal involves selling or issuing an ownership stake rather than simply borrowing money.
This is why the requested investment and offered percentage allow viewers to calculate an implied valuation. An offer of £50,000 for 10 percent suggests a valuation of £500,000 before considering the precise legal structure and negotiation terms. The final deal may differ from the opening proposal.
Equity is not the same as revenue, turnover or profit. Revenue and turnover describe money generated by sales, while profit is what remains after relevant costs. Interest is normally the price paid for borrowing money, whereas equity gives the investor a claim on ownership and potential future value.