Non-Dilutive Funding Options Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startup funding comes in two forms: dilutive and non-dilutive. Equity funding is dilutive in that the fundraising reduces the ownership of the founders. Debt is non-dilutive in that the fundraise doesn’t change the founders’ ownership. Here’s a list of non-dilutive funding options. Loans -- these tend to be short-term loans from a bank. Grants -- these are most often acquired from government agencies that make grants to startups to foster innovation. Rewards/prepay crowdfunding -- this generates funding for startups in the form of prepayment for a product to be delivered later. Licensing -- funding comes in the form of licensing the technology to other companies who use the technology in their product. Tax credits -- funding comes in the form of tax breaks, such as an angel tax credit offered by many states. Factoring -- funding comes in the form of short-term loans for manufacturing the product. Venture debt -- a form of loan that uses the startups' raised capital as collateral. Subscription-based financing -- loans to startups with recurring revenue that use the subscription revenue as collateral. Consider these non-dilutive funding options for your startup. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group Please , share, and leave a review. Music courtesy of .
