Dragons' Den entrepreneurs usually offer investors equity.
Equity means an ownership stake in a company. In the den, an entrepreneur typically asks for a specific amount of money in exchange for a stated percentage of the business. The dragon then decides whether the valuation, opportunity and proposed ownership are attractive enough to justify an offer.
This structure differs from a loan. A lender expects repayment, usually with interest, while an equity investor accepts the possibility of losing the investment in return for a share of any future business value. Negotiations can change the percentage, the amount invested or whether more than one dragon participates.
A televised agreement is not necessarily the final completed deal. After filming, the investor and entrepreneur may conduct due diligence, and some on-screen deals do not complete. Equity remains the core ownership concept behind the standard pitch format.