A Dragon's Den entrepreneur offers equity in exchange for an investor's money. Equity means an ownership share in the business, usually expressed as a percentage of the company.
During a pitch, the entrepreneur states a cash requirement and a proposed percentage. The Dragons may accept, reject or renegotiate that valuation, sometimes combining their money in a joint offer. If a deal is agreed on camera, further legal and financial checks normally follow before completion.
Equity is not the same as a loan: a lender expects repayment with interest, while an equity investor takes an ownership stake and shares in potential gains or losses. Royalties, another possible deal structure, are payments linked to sales rather than direct ownership.