OPINION

The Growing Relevance of Non-Equity Based Fundraising Today!

Tips to raise funds without giving up any equity.

As I have reiterated time and time again, startup founders are some of the smartest people I get to meet. Armed with razor-sharp wit, and bursting at their seams with bubbling enthusiasm, these bright minds can give many a run for their money.

However, as gifted as they may be, most of them end up tripping over the same Achilles heel: Funding

Figuring out the right funding model is often arduous and perplexing; and even if one manages to decide on an appropriate one, it leads to yet another backbreaking journey to find just the right investor. Then, even if a founder does find a great investor to back up the business idea at hand, it is a brand new puzzle to solve when it comes to assessing how much money it really needs at a given stage. Many promising unicorns have been lost to the mad rush for funds, so being mindful of how much one really needs is critical to building a sustainable business.

At the same time, the founders and their teams must know exactly how much equity they…