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seed money |
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Seed money The first contribution by a venture capitalist toward the financing of a new business, often using a loan or purchase of convertible bonds or preferred stock. See: Mezzanine level and second round. Seed Capital Money used for the initial market research and/or operations for a company. Seed money is vitally important because, without it, a company can hardly come into being, let alone become successful. It may come from a loan, and initial public offering, or from another source. For example, it is famously said that Ross Perot established Electronic Data Systems with $1,000 in personal savings; in this case, Perot's savings account contained his seed money. See also: Seed round.
seed money The amount of money necessary to begin a real estate development prior to the acquisition of any financing. It will cover the costs of market studies, feasibility studies, loan application expenses,and accounting and legal fees.Also called front money. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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