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 ?
A constant supply of fresh, clean drinking water in a drip feed bottle with metal spout.
He said: "The drip feed of revelations about the E Coli crisis is simply adding worry to deepening concern.
Lord Brennan was treated by ambulance and first aid staff, using an oxygen mask and a drip feed, and carried out of the chamber on a stretcher.
Nicholas Hilliard, prosecuting, said the 13 teaspoons of salt poured into a milk drip feed was the last in a series of deadly acts undertaken by Stocker.
A HIGH Court judge blasted a Northern Ireland hospital yesterday after doctors failed to drip feed a hunger striker.
It is impossible to believe other than that Blair and Bush have intelligence reports that go way beyond the drip feed of rumour and unsubstantiated fact we have so far received.