Grant

Also called Non-Dilutive Funding and Non-Dilutive Capital

Non-dilutive money, from a government, foundation, or corporate program, that you do not repay and that does not take equity. Usually tied to a specific purpose, milestone, or sector.

Why it matters

Grants extend runway without costing ownership, which is pure upside if the strings fit your plan. The catch is the application effort and reporting, so they reward founders who target ones that match what they were doing anyway.

For example

A deep-tech startup wins a 50 lakh government innovation grant that funds a prototype without taking any equity or needing to be repaid.

Related terms

Revenue-Based Financing Bootstrapping DPIIT Recognition

Go deeper

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

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