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.
Related terms
Put this term to work
Definitions win negotiations only when you are in one. Find the investors who fund your stage and start the conversation.
Browse the investor database