Non-Dilutive Funding
Definition
Non-dilutive funding is capital that does not take equity: grants, revenue-based financing, venture debt (mostly), tax credits, and customer prepayments.
How it comes up in fundraising
Founders layer non-dilutive sources onto equity rounds to extend runway without selling more of the company.
Frequently asked questions
What are common non-dilutive sources for startups?
Government innovation grants, R&D tax credits, revenue-based financing against recurring revenue, and venture debt alongside an equity round.
Is venture debt really non-dilutive?
Mostly: it usually includes small warrants, so it costs a sliver of equity rather than none.
Cite this term
Round Funded. "Non-Dilutive Funding." Startup Fundraising Glossary.
Stable URL, it will not change: https://www.roundfunded.com/en/glossary/non-dilutive-funding
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