Non-dilutive / Philanthropic
What this is: Donations, grants, PRIs, and challenge prizes that fund R&D and validation without equity. When to use: Evidence-building phases (pre‑PMF, pre‑regulatory); mission‑centric work. When to avoid: If timing is highly urgent or reporting/admin overhead would stall execution.
Tools & Structures
Donations
Gifts from individuals or organizations; unrestricted cash, no repayment; amounts unpredictable.
Grants & PRIs
Competitive foundation or government awards; non‑dilutive, milestone reporting required.
501(c)(3) structure
Operate via nonprofit entity to access tax‑deductible funds; limits profit distribution.
Philanthropy / Endowments
Large foundation or university investment pools commit grant/PRI/mission‑related investment capital, typically earmarked for specific impact objectives.
Prize & Challenge
Cash award for hitting specific technical goal; publicity boost, winner‑take‑most.
Key levers: Eligibility & fit, matching rules, IP & data‑rights, indirect cost/overhead, publicity rules.
Case studies: Amylyx, Global Access Health, Civica Rx.
Related: See also Government & Multilateral for government grants, and Mission‑Aligned Investors for foundation PRIs.
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