What type of agreement do entrepreneurs generally seek from investors on Britain's Dragon's Den?

Entrepreneurs on Britain's Dragon's Den generally seek an equity investment from the dragons.

An equity investment means that an entrepreneur offers a percentage ownership stake in a business in exchange for capital. The money can support manufacturing, marketing, recruitment, distribution or other forms of expansion, while the investor may also contribute expertise and contacts.

This differs from a bank loan, which normally has to be repaid with interest but does not automatically give the lender ownership. It also differs from a grant, which is funding provided under specific conditions and is not normally an ownership purchase.

The percentages and valuations discussed on screen are proposals made during a pitch. Any apparent agreement can still be subject to due diligence and legal negotiations before a final deal is completed.