Dragon's Den investors commonly request equity in exchange for funding.
Equity means an ownership stake in a company. When a Dragon offers money for a stated percentage, the investor is proposing to receive that share of the business rather than simply lending money at a fixed interest rate. The percentage also implies a valuation: the investment amount and offered stake together indicate what the entrepreneur says the company is worth.
Negotiations often change the proposed percentage. A Dragon may offer the requested cash but ask for more ownership, or several Dragons may combine their money in a joint offer. Entrepreneurs can accept, reject or counter those terms.
An on-screen agreement is not automatically a completed investment. The parties normally carry out due diligence after filming, and a deal may be altered or withdrawn. That distinction is one of the programme’s most commonly misunderstood business details.