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

Funds provided to finance the initial stages of a new venture. Seed money may be utilized to conduct research, develop the prototype for a product, or determine if an idea is workable or economically viable.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Mentioned in

References in periodicals archive

Juncker said the European Investment Bank will be the "prime mover" in delivering seed money for those investments over the next three years.

EU proposes $380 billion investment plan

The seed money will allow the students to continue to develop their concept.

2 local UMass Lowell students receive seed money for innovative ideas

"Our goal was to be able to provide seed money to develop a site in a community outside St.

Racing with the Reverend

This seed money supplies the spark that gets projects started, which are then sustained through community partnerships.

NEI names 2011 Healthy Vision Community Awards recipients

The fund will finance grants to use as seed money for three purposes: to reopen theaters that sit vacant, to sustain those that are open but struggling, and to start downtown movie theaters where there are none.

Moore sets up fund to revive old theaters

Summary: MENA's most promising entrepreneurs to compete in Cairo on Friday, 4 June for start-up seed money equaling USD $60,000.

Nine Final Teams from Across MENA to vie at MIT Business Plan Competition Gala

Summary: Marriott International will invest $500,000 in seed money over the next two years to support a vital water conservation program that helps protect the largest source of fresh water on the planet, located in the mountains of Southwest China.

Marriott International to invest in seed money

Behind any new company using seed money is a complex web of investors, who make up the venture capital fund.

VENTURE CAPITAL : CROSS-BORDER INVESTORS FACE DOUBLE TAX, SAYS REPORT

The $101,000 contributed by the anonymous donor Tuesday matches the local woman's seed money, doubling the endowment fund's balance to $202,000.

Food bank receives anonymous $301,000 donation