Editor's Desk

What is non-dilutive funding?Non-dilutive funding is capital that doesn't require you to give up equity in your company in order to receive funding. It’s the opposite of venture capital (VC) investment where you typically sell a portion of your equity in return for working capital.With non-dilutive funding, you can receive funding based on other business factors. Non-dilutive capital is a good alternative funding option for startup founders and small-to-medium-sized business owners seeking financing that does not require them to give away equity or ownership in their company.&nbsp;The common perception of many founders is that their only funding option (especially for Software as a Service - SaaS - startups) is to raise VC money. But startup founders who opt for non-dilutive funding, as opposed to VC deals, hold on to all their equity and aren’t forced to continuously accept VC while losing more and more equity as a means of pleasing investors.&nbsp;At the startup phase, running a business can be incredibly challenging. Perhaps a lack of experience or minimal credit history makes it difficult to break into traditional loans. Non-dilutive funding is especially attractive for new companies since owners retain full control of their own enterprises. Owners never have to worry about the whims of venture capitalists, angel investors or other financiers.Different Types of Non-Dilutive Financing:<ul><li>Grant awards, whether from governmental or non-governmental entities, are often the most prized form of funding.</li><li>Crowdfunding (raising small amounts of money, usually via online appeal, from several individuals) and family loans (revenue raised from relatives).</li><li>Revenue-based financing (RBF), where investors provide companies with capital in exchange for a percentage of the monthly revenue as a return on the investment.</li><li>Venture debt, a form of debt financing that is only available to venture-backed startups.</li><li>Annual Recurring Revenue or ARR lending is very similar to venture debt, allowing subscription-based services to maximize their returns without losing company ownership.</li><li>Structured equity products are pre-packaged investment deals that include a mixture of assets linked with interest.</li></ul>Fundraising is without question one of the biggest dilemmas CEOs face and there are a number of funding opportunities available, and the best option will largely depend on the specifics of your organization, your preference surrounding equity, and what kinds of goals you’re looking to achieve.

Explore non-dilutive financing for startups! Preserve equity, explore funding options, and accelerate growth without sacrificing ownership. Learn more!

Non-Dilutive Financing: Accelerate Startup Growth |YourTribe

Non-dilutive capital is a good option for business owners seeking financing that does not require them to give away equity or ownership in their company. 