What Exactly is Non-Dilutive Capital?

Non-dilutive capital is a type of financing that does not result in the dilution of ownership stakes. This is in contrast to traditional rounds of financing, which generally involve the sale of equity to venture capitalists or angel investors in exchange for growth capital. However, the problem with diluting your equity to raise money is that it can often result in the loss of control of your company. In some cases, it can also lead to the dilution of key employee shares.