Drip feed

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Drip feed

The continual investment of capital in a small and growing company as the company needs it, rather than investing a lump sum at the company's inception.

Drip Feed

1. In venture capital, the practice of making small investments in a start-up as the need for capital arises. That is, a venture capital firm may sponsor a start-up, but a drip feed protects the firm from the risk that a start-up will collapse, resulting in the loss of the whole investment. A drip feed can be useful because it allows the start-up to maintain and expand operations while not forcing too much risk on its sponsor.

2. See: Dollar-cost averaging.
References in periodicals archive ?
We're not on a drip feed," he said, "but I don't think we're running around playing football.
There has been a constant drip feed of people complaining about the problem, however.
You could drip feed money in from another account each month.
A drip feed of information, in this way, can only do good in helping to raise environmental awareness.
Unless they track down Juan Riquelme before the match and drip feed him a bottle of the hard stuff.
The Government drip feed 10 or 12 charities who are terrified of saying anything in case they end up getting nothing.