Non-Dilutive Funding refers to financing that does not require the sale of share capital, thus not diluting the ownership stake of existing shareholders.

Non-dilutive funding allows companies to raise capital without giving up equity, preserving the ownership percentages of existing shareholders.

What is the difference between dilutive and non dilutive capital? Dilutive capital involves issuing new shares, which reduces the ownership percentage of existing shareholders. Non-dilutive capital does not involve issuing new shares, so ownership percentages remain unchanged.

What is an example of dilutive funding? An example of dilutive funding is issuing new shares in a venture capital round, which decreases the ownership percentage of existing shareholders.

What are the cons of non dilutive funding? The cons of non-dilutive funding can include higher interest rates, stringent repayment terms, and limited availability compared to equity funding.

Non-dilutive funding preserves ownership stakes, avoids dilution of equity, and maintains control for existing shareholders.

Non-dilutive funding is a valuable option for companies seeking capital without diluting existing ownership, though it may come with different financial terms and conditions.