Entrepreneurs on Dragon's Den usually offer investors equity when seeking a deal.
Equity means an ownership stake in the business. In return for investment, a dragon may receive a stated percentage of the company, giving the investor a financial interest in its future performance and value.
The negotiation commonly involves two linked figures: the amount of money requested and the percentage of equity offered. If a founder asks for £100,000 for 10%, for example, the implied valuation is £1 million before considering the precise deal structure.
Not every televised agreement becomes a completed investment, and some deals may include loans, royalties or other conditions. Nevertheless, equity is the standard ownership term associated with the programme's core pitch format. It is different from a wage, which pays for work, and from rent, which pays to use property.