what is non dilutable equity

11 months ago 18
Nature

Non-dilutive equity refers to a type of financing for a business where they do not lose any equity in the company. Non-dilutive financing means that a company receives money for the business without giving away any ownership of the company itself. This type of funding is particularly important for startups, who want to avoid giving up equity in their company. Non-dilutive funding can be in the form of loans, grants, competitions, vouchers, tax credit programs, and even contributions from family members. Non-dilutive funding can be more affordable, flexible, and can act as a bridge for private companies who cannot raise money by borrowing it. It is important to note that non-dilutive financing is different from anti-dilution shares, which protect an investor against a down-round in the future. Non-dilutive financing is a way for companies to receive funding without giving up any ownership or equity in the company.