I watched Dragon's Den a few times and basically these city slickers robbed people of their ideas, for their gain, by demanding high percentages of a firm in return for an investment. To be the money that they put in was not worth giving up half of the potential profits and more in some cases.
They got away with it because the folks with the ideas hadn't a clue how to raise finance from venture capital funds. These Dragon guys would put the money in via another Limited company which would then become a director with the joe public person. However the director company would, in turn, borrow the investment money needed to buy in and not use any of the Dragon's own money at all . So, if it all went pear shaped and the firm with joe public and the director company went bust then the director company would just declare bankruptcy and default on the loan repayments of the seed money. The lenders would be insured for the loss and the only loser would be joe public person who got mixed up with them in the first place.
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