Launching a deep tech or embedded systems startup is no small feat. You’re innovating at the intersection of hardware, software, and science, which often means long development cycles, complex R&D, and significant upfront investment. The catch? Traditional venture capital can demand equity before your prototype even boots up.
This is where non-dilutive funding comes in. It gives you the fuel to build without giving away a piece of the company too early. Let’s walk through the top sources, grants, SBIRs, and accelerators, and how to approach them.
What Is Non-Dilutive Funding?
Non-dilutive funding means capital that doesn’t require you to give up equity in exchange. You get the resources to grow, while retaining full ownership and control. This is especially critical in deep tech where validation takes longer and selling too soon can cost you long-term strategic advantage.
Top Non-Dilutive Sources for Deep Tech Startups
1. Grants
Government grants, research institutions, and foundations often offer funds specifically to fuel innovation in science, defense, energy, and health.
Popular options include:
- National Science Foundation (NSF)
- Department of Energy (DOE)
- DARPA (for defense-related R&D)
- NIH (for biotech and health tech)
Tips for success:
- Align your proposal with national research priorities
- Show clear potential for societal or technological impact
- Have a realistic development and execution plan
2. SBIR and STTR Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are goldmines for early-stage tech. Funded by U.S. federal agencies, these programs offer phased funding to develop, test, and commercialize cutting-edge technology.
Why it works:
You can receive hundreds of thousands in Phase I, and over a million in Phase II
- No repayment or equity required
- Builds credibility and traction with other investors
What to keep in mind:
- Proposals must be detailed, with technical feasibility
- Timeline from submission to funding can be lengthy
- You’ll need a team that can speak both science and business
3. Hardware Accelerators
Accelerators focused on hardware, robotics, or embedded systems can offer funding, prototyping support, and mentorship.
Well-known programs include:
- HAX (SOSV)
- Techstars Hardware
- IndieBio (for biotech with embedded systems)
- MassRobotics accelerator programs
What they offer:
- Small amounts of equity-free or low-dilution capital
- Lab space, tooling, and supply chain mentorship
- Pitch opportunities and investor access
When to Apply for Non-Dilutive Funding
- You’re building IP-heavy tech with long R&D timelines
- You’re pre-revenue and don’t want to raise on weak valuation
- You need lab space or access to prototyping tools
- You’re exploring commercialization but need validation first
Deep tech and embedded systems founders face unique hurdles. Non-dilutive funding can unlock critical runway to build, test, and iterate without giving up control. Whether it’s a federal grant, SBIR application, or niche accelerator, the right funding strategy can give you time to turn your science into a real solution.
At Code Scientists, we partner with deep tech founders who are building what’s next. We understand the path from prototype to product and help you move faster with smarter architecture and scalable systems from day one.
Ping us if you’re ready to turn funding into functional innovation.