front money


Also found in: Dictionary, Idioms.

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.

front money

Cash needed to start a development, as opposed to borrowed funds. See seed money.

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References in periodicals archive ?
Because of the non-recourse market, most agents lost their sales arts and began to simply offer up front money or guarantees for signing forms.
The construction boom has compounded problems for subcontractors who often front money for jobs that remains unpaid by fly-by-night general contractors difficult to track.
"This gives us the front money. It's a great thing."
recommended keeping all of the town's options open, especially since the cash-strapped town would not have to front money if it works in conjunction with the DCR and FEMA.
Some Stephens people were in South Carolina several weeks ago to do a deal with the state and apparently were told by a legislator that some front money might help their cause.