The Benefits of Non-Dilutive Funding
We keep throwing around the phrase “non-dilutive funding” and how FreeMind Group has been working for the past 25 years and continues to work with clients to achieve non-dilutive funding from U.S government and private foundations to fund their R&D.
But first, let’s take a step back and define what in fact IS nondilutive funding?
Non-dilutive funding refers to financial support in the form of a grant or award that does not require the recipient to give up equity in their company.
So why do we guide our clients down the path to achieving non-dilutive funding? What are the benefits?
- As mentioned, non-dilutive funding allows founders and shareholders to retain ownership and control of the company, as well as reap higher rewards, if and when, they exit through M&A, or IPO.
- There is less of a financial burden placed on the company, as non-dilutive funding grants and awards do not require repayment, reducing the financial strain, effectively creating shareholder value via scientific advancements at “no cost” out of pocket.
- Securing non-dilutive funding can serve as a strong endorsement and enhance a company’s credibility in the market as well as attracts investor’s attention.
- Non-dilutive funding comes with no fiscal expectation for immediate ROI, but rather focuses more on advancing human health, where long-term job creation and growth in GDP is an anticipated, yet not mandatory, bi-product.
And the ultimate benefit is that we guide life sciences companies across all sectors of the field and across many stages of development through the application process to securing non-dilutive funding.