I raise equity only when the next milestone costs more than revenue or grants can fund.
I’m tackling fragmented procurement in defence and space hardware by adopting a milestone‑driven fundraising approach that prioritises the cheapest money – grants first, equity only when needed.
- Decision: Use milestone‑driven fundraising to avoid over‑dilution.
Decision Rule:
If Milestone Cost ≤ Revenue + Grants → fund with non‑equity sources only.
If Milestone Cost > Revenue + Grants → raise equity for the shortfall.
BIRAC grant ceiling: ₹50 lakh.
- Decision: Prioritise BIRAC and similar grants before raising equity.
- Decision: Apply the “cheapest money” rule to size equity raises.