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.