seed money

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Seed money

The first contribution by a venture capitalist toward the financing of a new business, often using a loan or purchase of convertible bonds or preferred stock. See: Mezzanine level and second round.

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.

seed money

Funds provided to finance the initial stages of a new venture. Seed money may be utilized to conduct research, develop the prototype for a product, or determine if an idea is workable or economically viable.

seed money

The amount of money necessary to begin a real estate development prior to the acquisition of any financing. It will cover the costs of market studies, feasibility studies, loan application expenses,and accounting and legal fees.Also called front money.

References in periodicals archive ?
The seed money for the ASEAN Human Resources Development Fund would come from Japan's contributions to the ASEAN Foundation, which funds exchange programs both within ASEAN and between ASEAN countries and Japan.
A comprehensive article about him in the July/August 1981 Columbia Journalism Review reported, "Since 1973, Scaife entities have provided seed money to as many as two dozen New Right organizations," which at the time of their organization was "of more value than millions later on.
Eastman Kodak pioneered an Office of Innovation to provide seed money and guidance to innovators.
Through the use of this seed money, Columbia, Luzerne, Montour, Northumberland and Snyder counties can continue their joint efforts to reduce future flooding and build partnerships with industry and the public.
To New York Hospital, the Helmsleys gave $30 million that provided seed money for the construction of new facilities.
Interest from the endowment funds, which Reynolds estimates at $75,000 a year, will be used as seed money for research, documentation, and educational publishing, including digital preservation and the creation of an on-line, multimedia database of information about Balanchine (1904-1983) and his work.
A portion of the proceeds from tickets sold to State of New Hampshire employees during those events will be used as seed money for the pilot project.
If authorized, the federal funding would provide valuable seed money for a developing plan to clean up and return portions of the the concrete flood channel to a natural state, at a potential cost of $1 billion.
Financial Services provided $250,000 in seed money to start funding the training for HBCU faculty members.
The next couple of months will be spent completing the design work, selecting a contractor, firming up government seed money from FedNor and the Northern Ontario Heritage Fund and having an environmental assessment completed at the site.
Money spent by the government on the arts has a generative effect; it is basically seed money that is intended to stimulate the development of resources.
The New York City Partnership plans on raising $100 million dollars as seed money for high-impact city projects.