Dilutive and non-dilutive capital

There are two types of capital to consider when starting your biotech; dilutive and non-dilutive. Becoming too diluted at the beginning risks loss of motivation and feelings of ownership for the founders – two elements crucial to its success. Go for a combination of both, advises entrepreneur and consultant Peter Harboe-Schmidt.

Non-dilutive capital

There are various types of non-dilutive funding available if you have the discipline to look for them. They include grants (see box), prizes and awards like the Red Herring award (which also helps with visibility and recognition) subsidies and customer and industry partnerships.

Grants and writing the grant application

Company grant applications are often a complex endeavor…