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 ?
REGARDING the terrible tragedy of the high-rise flats fire in London, most people believe that the public is being deliberately misinformed, if only by omission, and drip-fed reports.
Nevertheless, there are some drip-fed improvements.
There is so little interaction between people nowadays, other than electronically induced console-provided and drip-fed activity that seems only to numb the minds of our youth.
DOCTORS drip-fed neat vodka to a patient for three days to keep him alive after he suffered severe poisoning, it emerged yesterday.
He survives by drinking water and having nutrients drip-fed through a tube directly into his bloodstream for 12 hours aday.
She said he was being drip-fed after losing 33lb and found it painful to speak.
The accusation by the FSA that horsemeat is being drip-fed into the food chain is extremely serious and worrying.