Non-dilutive funding
Also called: non-dilutive capital
ELI5
Funding that does not directly reduce existing ownership.
Used in conversation
“Non-dilutive funding can still carry restrictions or repayment.”
Definition
Capital that does not directly require issuing additional ownership, such as grants, revenue or some debt.
Here “Non-dilutive funding” means: Capital that does not directly require issuing additional ownership, such as grants, revenue or some debt.
Pitch context
You will see “Non-dilutive funding” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.
Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- Y Combinator — Safe financing documentsDirect source · practitioner · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16