Dragon's Den investors usually seek equity in exchange for funding.
Equity means an ownership share in a company. During a pitch, an entrepreneur normally states the amount of money requested and the percentage of the business offered. A dragon may accept those terms, negotiate for a larger share or decline to invest.
This structure is different from a conventional loan. A lender expects repayment, usually with interest, while an equity investor takes a stake and hopes the company's value will grow. The investor also faces the risk that the business may fail and the stake may become worthless.
Television negotiations can be edited for pacing, and an offer made on camera is not necessarily the final completed investment. Due diligence, legal documentation and further negotiations may follow filming. Nevertheless, equity is the central form of consideration represented by the programme's standard investment pitches.