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Building and scaling an innovative company requires capital. But that capital can take many forms depending on where you are in the growth of your business. It’s about going after the right funding at the right time.
Reach More Before Your Next Raise
All innovative companies should have a capital strategy, and non-dilutive funding should be part of it.
One of the biggest advantages of grants, tax credits and wage subsidies is the ability to achieve more milestones before chasing more venture capital.
“Any time you can use non-dilutive funding to extend your runway and achieve more milestones, more growth, more maturity before going into the market and raising capital, that's a better presentation for you to go into an investment round.” - Co-founder & CEO, James Lochrie
“Any time you can use non-dilutive funding to extend your runway and achieve more milestones, more growth, more maturity before going into the market and raising capital, that's a better presentation for you to go into an investment round,” says Thin Air Labs CEO James Lochrie.
Those milestones could include completing R&D, building a product, securing regulatory evidence, hiring key talent, demonstrating technology or entering a new market.
Preserve More Equity
Non-dilutive funding can also help founders retain more ownership of their company as they grow.
“Using grant funding keeps more of your company in your own pocket,” explains James. “And so as you scale, you have more equity, you have more ownership and more control.”
That doesn’t mean grants replace venture capital. The strongest capital strategies often leverage different sources of capital for different purposes.
Add Validation and Build Relationships
Receiving competitive government funding can provide investors with another signal about a company and its ability to execute.
Funding agencies may assess the technology, team, financial capacity, market opportunity, project plan and expected impact before committing capital. That doesn’t replace investor due diligence or validate an entire company, but it does show that an external organization has assessed a project and chosen to support it.
“Non-dilutive capital is challenging to leverage well while you're building a company,. It takes time to understand, and doing it well takes real expertise. That’s why we have our Funding Catalyst team, to partner with your team, to get it all done together.” - Co-founder & CEO, James Lochrie
The value of non-dilutive funding can also extend beyond the funding itself. Through the process of securing this funding, companies may also develop relationships with government agencies, researchers, industry partners, customers and other organizations that support future growth.
That’s why a strong non-dilutive funding strategy is more than a list of grants. It’s a long-term roadmap connected to the company’s business growth and capital strategy.
At Thin Air Labs, our Funding Catalyst team works as a capital strategy and growth partner, helping innovative companies identify the right opportunities, develop long-term funding roadmaps, execute applications and manage funding after an award.
“Non-dilutive capital is challenging to leverage well while you're building a company,” admits James. “It takes time to understand, and doing it well takes real expertise. That’s why we have our Funding Catalyst team, to partner with your team, to get it all done together.”
Our team has helped ventures secure close to $100 million in non-dilutive funding — helping founders access the right capital, at the right time, to move their businesses forward.
Curious? Reach out to the team.
