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

SBIR Grants vs. Venture Capital: Who Owns Your Startup?

9 Jun 2026 · 0 min

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0:25

In this concise segment, Stacy L. Chin explains the fundamental difference between SBIR/STTR grants and venture capital financing. SBIR and STTR grants are 100% non‑dilutive, meaning the government provides money while founders retain all of their equity and control. In contrast, venture capital is dilutive: investors receive equity, take seats at the decision‑making table, and often influence or replace founders—by the third funding round, roughly half of founders may lose the CEO role. The speaker frames the choice as a trade‑off between maintaining full ownership and sharing control in exchange for capital.

First, ownership and equity. Here's the biggest difference: SBIR and STTR grants are 100% non-dilutive. Uncle Sam hands you the money and you keep every ounce of your equity. Venture Capital? Whole different story. You give up ownership. Investors take a seat at the table and they want to stay in the big decisions. By round 3, half of founders are kicked out of the CEO seat. So do you want to stay in full control or start sharing the wheel?