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.