Stacy L ChinFounder, KeepYourEquity · I get the government to write you checks

Biotech Funding: The Secret Non-Dilutive Capital Source

6 Feb 2026 · 1 min

Watch on YouTube

1:15

In this YouTube monologue, Stacy Chin warns biotech founders that the funding environment has dramatically shifted from 2025 to 2026, with venture capital retreating, valuations falling, and many private‑capital pipelines drying up. She highlights that, despite this slowdown, federal funding streams—NIH, ARPA‑H, the Department of Defense, and SBIR/STTR programs—continue to award multi‑million‑dollar grants each month. Chin explains the concept of non‑dilutive capital (no equity, no board seats, no dilution) and argues that it lets founders retain full ownership while de‑risking their science. She cites Moderna, Ginkgo Bioworks, and 23andMe as companies that launched with such funding, and dispels the myth that these programs are only for large players, urging founders to actively pursue these resources.

Chapters

If you're a biotech founder, especially right now, you need to hear this because the way your startup was funded in 2025 might be very different than 2026 and ahead. So yeah, let's be real. This was a difficult year. Like we said, investors pulled back, valuations dropped, governmental shutdowns. And so a lot of private capital and small teams in the sector nearly vanished in the pipeline or just dried up. But here's the thing that no one's really talking about. While those venture markets have slowed down, the federal markets and funding initiatives have not. Because behind the scenes, NIH, ARPA-H, and DOD are still writing big checks, millions of dollars every single month for startups developing the next wave of biotech innovations. And the smartest founders I know, they're not only just chasing investors right now, but they're also going after non-diluted capital. And because this is really what non-dilutive really means, no equity given up, no board seats, and no dilutions. You get to grow your company, validate your technology, and keep 100% of your ownership while de-risking your science. And actually, that's how companies today like Moderna, Ginkgo Bioworks, and 23andMe actually got their early starts. It's actually through the SBIR/STTR program and defense-backed R&D contracts. And if you think those programs are only for the big players, you're wrong.