If your funding gives away any ownership or equity of your company, it’s dilutive. Non-dilutive funding means you’re getting money without giving up any equity. It’s an important distinction for any business, especially smaller companies trying to get a leg up in the competitive world of research and development.
Non-dilutive funding is part of our company building process, and part of diversified funding programs and opportunities that ensure our client organizations can keep building equity and moving forward in their work. At Grant Engine, we believe non-dilutive funding is vital to the ongoing success of businesses.
There are many examples of non-dilutive funding, the most common:
- Grant awards
- Bank loans
- (Forgivable) Loans from family and friends
- Licensing and royalties from products\
- Tax credits
- Crowdfunding
We see grant awards as one of the most valuable and sought-after forms of non-dilutive funding, and well worth pursuing. Grants help organizations fund the activities and operations that increase the value of a company, including product development, clinical trials, and design efforts. All of these activities move a business toward a marketable product or service, at which point is it valuable enough that selling off shares is lucrative enough to consider.
Grants are also an ideal form of non-dilutive funding, over loans, because they do not need to be paid back. With a loan, you are stuck reimbursing the lender, often with interest. With a grant, you’re free to move forward using the funding as set out by the grantor, without having to worry about how you’ll factor repayment into your future finances.
As compared to vehicles like crowdfunding, or attempting to get a tax credit after the fact, grants are predictable. Crowdfunding can be widely successful but can also be a risk to reputation and public perception, and may not even work. Tax credits are an after the fact reimbursement, which means your business needs to spend money first. While you cannot guarantee you’ll earn a grant, by the time you’re making plans to budget the money you are aware of whether or not you have it, so you can move forward accurately.
We’re here to help you access the best non-dilutive funding for your business needs, based on our extensive experience and skill in this field. Please call (650) 937-9164, email greatscience@grantengine.com, or click here.
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