Fundraising
Non-Dilutive Funding
Capital sources that don't require giving up equity — including grants, loans, revenue-based financing, and government programs.
Non-dilutive funding is any capital source that doesn't reduce founders' equity ownership. Types: Government grants (SBIR/STTR grants for deep-tech startups, up to $2M with no equity required), revenue-based financing (investors receive a percentage of monthly revenue until a multiple is repaid — no fixed equity dilution), venture debt (loans from specialized lenders — requires repayment but no equity, only warrants), bank loans (rare for early-stage startups without assets), and customer prepayments or annual subscription payments. Non-dilutive funding is particularly valuable for founders who want to grow before taking on expensive equity capital, or for companies in capital-intensive sectors where grants can fund initial R&D.