This document provides information on non-dilutive funding sources for technology startups. It discusses the advantages of non-dilutive funding such as preserving founder equity. Government funding sources like Broad Agency Announcements and Small Business Innovation Research grants are recommended options. The process involves customer development, discovery of funding opportunities, and validation by engaging with program managers. Key steps include identifying the right agency and opportunity that aligns with your technology and the funding vehicle's requirements.

1. Finding Non-Dilutive Funding For
Your Technology Startup

2. Finding Non-Dilutive
• Why Non-Dilutive?
• Should you consider Government Sources?
• The Process: Customer Development
• The Best 3 Sites for Customer Discovery
• Customer Validation
• Conclusion

3. Why Non-Dilutive?
• Early money is expensive!
• Advantages of Non-dilutive funding:
– Preserves equity ownership of founders/investors
– High risk, seed and early stage funding
– Build value for later rounds
– Very much like Non-Recurring Engineering
– Leads to customer engagement
– Positive value and traction message to investors

4. Should you consider the government
as a Strategic Partner?
• Strong regulations favoring and protecting
small businesses
• Relies on small businesses and not Prime
Contractors for innovation
• Variety of funding and contracting
mechanisms suited for “non-traditionals”
• Well documented requirements
• Completed projects lead to customer
engagements

5. The Rosetta Stone
• Funding type is 6.1 through
6.6
• Aligns with Technology
Readiness Level (TRL)
• Translates to Angel, Seed, and
Early Stage VC funding.
• Most common funding
vehicles/programs:
– Broad Agency Announcements
(BAA)
– Other Transaction
(OT)….Consortium
– Small Business Innovative
Research (SBIR)
– Across a variety of agencies (

6. The Process: Customer Development
• Adapt Customer Development process to funding (Diagram)
• Customer Discovery
– Alliance Mapping
• The right partner with the right stage of funding
– Identify the Agency
– Identify the Opportunity
• Customer Validation
– Engage with Program Manager
• Create feedback loop
• This is Business Development
– Very relational, high contact
– Not just proposal writing
– Results in funded projects and follow-on customers

7. Customer Discovery
• Your best resources
– DTIC: Follow the money
• Research and Development Descriptive Summaries
– FBO: Find the opportunity
• Fedbizopps.gov
– Defense Innovation Marketplace: Your Dashboard
– SBIR: Zyn.com
• Tutorials at Nondilutive.com

8. Defense Technology Information Center (DTIC)
• screen

9. FedBizOpps
• Search for all funding
Opportunities here
• First try funding type
Keyword search
– BAA, Broad Agency
Announcement
– OTA, Other Transaction
• Then drill down into
technology area

10. Defense Innovation Marketplace
Dashboard for latest:
-Strategic documents
-Agency presentations
-Funding opportunities

11. Customer Validation
• Determine if the opportunity is a good fit
• Engage with Program Managers or Principal
Investigators
– Early engagement pays dividends
– Short window duration for engagement
– Drill down on Requirements
– Customer perspective is key
– Determine technology fit or pivot

12. Summary
• Treat every funding opportunity like a
business development engagement
• Look for technology, agency, and funding type
fit just like investor or partner
• Agencies use funding vehicles like “Other
Transactions” for agility and ease of use
• Find out more at www.nondilutive.com