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 ?
Her letter followed his criticism that ministers were "marginalising" Muslims with a "drip feed" of stigmatising comments.
A constant supply of fresh, clean drinking water in a drip feed bottle with metal spout.
"There has been a constant drip feed of people complaining about the problem, however.
The Government drip feed 10 or 12 charities who are terrified of saying anything in case they end up getting nothing."
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.
He said: "The drip feed of revelations about the E Coli crisis is simply adding worry to deepening concern."