What type of deal do entrepreneurs usually seek from Dragons on Dragon’s Den?

Entrepreneurs on Dragon’s Den usually seek investment for equity in their businesses.

An entrepreneur presents a company or product and states how much money is wanted in exchange for a percentage ownership stake. The Dragons may then make an offer, reject the proposal or negotiate different amounts and percentages.

Equity means ownership. If a Dragon receives 20 percent of a company, that investor becomes entitled to a corresponding ownership interest, subject to the legal terms of the final agreement. The entrepreneur does not normally receive the money as a conventional repayable bank loan.

The television outcome is not always the final business outcome. A deal announced in the room can still fail during due diligence, when the investor checks accounts, ownership, legal matters and other claims. This is why an on-screen agreement is not automatically a completed investment.