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

Entrepreneurs on Dragon's Den generally seek equity investment from the investor panel.

An equity investment means that an entrepreneur offers a percentage ownership of a business in exchange for capital. The investors assess the company's prospects, valuation, sales, profitability and growth plans before deciding whether to make an offer.

This structure is different from a personal loan. A loan normally has to be repaid with interest, whereas an equity investor takes a share of the business and hopes that the stake will become more valuable. The entrepreneur therefore gives up part of the ownership but may gain money, expertise and business contacts.

A pitch can end with no offer, a revised offer or several investors proposing to work together. A handshake in the studio is not necessarily the final legal agreement, because further checks and negotiations may follow.