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 ?
Seed money from the ESF was quickly replaced by a more substantial cornucopia.
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.
Once admitted, participants receive financial literacy training, including the basics of banking, and are given $100 in seed money to open an Individual Development Account.
Other aspects of Microsoft's proposed plan include $150 million in seed money for technology spending and an additional $160 million for technology support programs to assist participating schools.
Women-led business startups are far surpassing the national average for star tups, despite the hurdles many women face when launching their own business - and they are managing to do so with very little seed money.
To New York Hospital, the Helmsleys gave $30 million that provided seed money for the construction of new facilities.
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.
Financial Services provided $250,000 in seed money to start funding the training for HBCU faculty members.