TLDR:
Non-dilutive financing refers to funding methods that do not require giving up equity, such as grants, revenue-based financing, government loans, and debt instruments, preserving founder and investor ownership percentages.
Non-Dilutive Financing Sources
Non-dilutive financing encompasses a broad range of capital sources that don’t require giving up equity ownership. Beyond grants, other non-dilutive sources include: debt financing (venture debt, SBA loans, bank lines of credit, equipment financing), revenue-based financing (where repayment is tied to a percentage of revenue), R&D tax credits and incentives (significant in the UK, Canada, Australia, and France), customer advance payments and long-term prepaid contracts, and strategic partnerships that provide working capital.