Funding instruments & exemptions · Core

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.