RE: How could Hamak raise cash without dilution?30 Jul 2025 11:43
For kotsin rather than ask people here why not do a search. As you are lazy to do I did it for you. The answer are not company specific but apply to all companies
: Non-Dilutive Funding Methods
Below, we detail ten key methods PLCs can use to raise funds without dilution, supported by examples and considerations from recent sources.
Debt Financing
Mechanism: PLCs can borrow money through bank loans, corporate bonds, or venture debt. The company repays the principal with interest over a specified period, without issuing new equity.
Advantages: Common for established PLCs due to access to credit markets; does not dilute ownership.
Considerations: Increases financial leverage, which can be risky if interest rates rise or revenue falls. Recent data from Investopedia (2024) highlights debt as preferred for its lower cost compared to equity, but notes it’s less viable in high-interest environments.
Example: Issuing corporate bonds to fund expansion, as seen in many UK PLCs in 2025.
Grants and Subsidies
Mechanism: Governments, NGOs, or supranational bodies provide funds for specific purposes, such as R&D in climate tech or health, without requiring repayment or equity.
Advantages: Non-repayable, ideal for innovation-driven projects. The EU’s EIC Accelerator, mentioned in Gilion’s 2025 guide, continues to support PLCs in tech sectors.
Considerations: Highly competitive; funds often restricted to specific uses, limiting flexibility. Local innovation grants vary by country, requiring thorough research.
Example: A PLC in AI receiving a government grant for deep tech development.
Revenue-Based Financing
Mechanism: Investors provide capital in exchange for a percentage of future revenues until a predetermined amount is repaid, typically used by companies with predictable income streams.
Advantages: No equity dilution, gaining traction in 2025 with platforms like Pipe and Founderpath. Pipe, as noted in Going VC (2024), allows firms to sell recurring contracts, depositing funds immediately.
Considerations: Reduces future cash flow, suitable for PLCs with strong revenue predictability. Eligibility often requires minimum annual recurring revenue (e.g., $100K for Pipe).
Example: A SaaS PLC using revenue-based financing to fund marketing, repaying from monthly subscriptions.
Crowdfunding
Mechanism: Raising funds from the public via platforms like Kickstarter or Indiegogo, typically debt-based or reward-based to avoid equity issuance.
Advantages: Accessible for smaller funding needs, leveraging public interest. Saratoga Investment Corp (2020) notes it’s unpredictable but can build brand awareness.
Considerations: Less suitable for large PLCs needing significant capital; may incur reputational risks if campaigns fail.
Example: A PLC launching a reward-based campaign for a new product, offering early access to backers.
Asset Sales
Mechanism: Selling non-core assets, such as property, equipment, or intellectual property, to generate cash
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