What type of investment do entrepreneurs usually seek from Dragons' Den investors?

Entrepreneurs on Dragons' Den usually seek equity investment from the investors.

In an equity deal, a Dragon provides money to a business in exchange for an ownership stake. The entrepreneur therefore offers a percentage of the company, rather than simply promising to repay a conventional loan with interest. The requested cash and percentage imply a valuation, which is why the Dragons often challenge the founder's figures.

A pitch can involve negotiation: a Dragon may offer a different amount, request a larger share or join another Dragon in a combined offer. The entrepreneur can accept or reject an offer, and a television agreement is normally subject to further due diligence before completion.

The format is sometimes described as a loan programme because money changes hands, but that is inaccurate in the usual pitch structure. Equity means the investor shares in future risks and potential rewards as an owner.