Stop defaulting to grants
Most founders reach for a grant because it's the only instrument they know. But there's a whole spectrum — recoverable grants, forgivable loans, revenue-based finance — and the right one depends on how you're built. Taking on recoverable capital is a strategic choice you can bring your board and funders along on. Here's the case, and the fit.
A grant is spent once. Recoverable capital does more.
No personal guarantees, no fixed repayments. Recovery is tied to milestones or revenue — and if it doesn't come, it simply becomes a grant. Your downside is capped.
You give up no equity and no control. The right structure funds your work without changing who owns or governs it.
Your success sends the capital back to fund the next founder. That story unlocks funders who want their money to go further than one grant.
A recoverable structure is a reason for a funder to say yes to a bigger cheque — because they know it can come back and be given again.
How to take this to your board & funders
The hardest part usually isn't the instrument — it's the internal conversation. Here's how to have it:
No. There are no personal guarantees and no fixed repayment obligation — recovery is milestone- or revenue-linked, and the worst case is it converts to a normal grant.
A credible plan for the milestones that would trigger recovery, and some impact track record or a clear theory of change. Repayment comes from future cash flow or a follow-on raise — not collateral.
Downside is capped (it becomes a grant), and the upside is more capital and a stronger, longer funder relationship. You're not taking on risk — you're offering funders a way to make their capital recycle.
Which instrument fits how you're built
Six quick questions and we'll point you to the instrument that fits — and the template to approach a funder with it.
Question 1 of 6
How is your organisation set up?
Instrument logic follows Aunnie Patton Power's Adventure Finance — worth every founder's time. We paraphrase and credit.
Ready to raise recoverable capital?
Elevate runs a recoverable-capital programme for mission-driven organisations. If a recoverable grant looks like your fit, apply — it takes a few minutes.
General information only, not financial or legal advice.