Just beacuse you are raising money doesn't mean you have to give up 20%
Non-dilutive capital is the closest thing to free money you’ll get.
Here are a few main types of non-dilutive capital:
- Grants: The closest thing to “free” money. Gov’ts / orgs give $ for research they want you to do
- Customers: Prepayments, LT commitments & negative floats vs. terms
- Loans: Don’t take it unless biz can support. But when raising $5M, $500-1M debt could be great
- Asset-Backed Lenders: Revenue-based financing, Inventory financing & lease capital. Careful, can be $$$$
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