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 ?
A total of 10 campaigns are expected to be selected to receive seed money via bank transfer.
Juncker said the European Investment Bank will be the "prime mover" in delivering seed money for those investments over the next three years.
The seed money will allow the students to continue to develop their concept.
"Our goal was to be able to provide seed money to develop a site in a community outside St.
This seed money supplies the spark that gets projects started, which are then sustained through community partnerships.
The fund will finance grants to use as seed money for three purposes: to reopen theaters that sit vacant, to sustain those that are open but struggling, and to start downtown movie theaters where there are none.
But until we got some real seed money, the authority couldn t move forward.
Summary: MENA's most promising entrepreneurs to compete in Cairo on Friday, 4 June for start-up seed money equaling USD $60,000.
Summary: Marriott International will invest $500,000 in seed money over the next two years to support a vital water conservation program that helps protect the largest source of fresh water on the planet, located in the mountains of Southwest China.
Behind any new company using seed money is a complex web of investors, who make up the venture capital fund.
Speaking in Islamabad, the Pakistani capital, Rehman Malik, Pakistan's interior minister, said that "seed money" was involved in securing Sahil Saeed's release on Tuesday.
The $101,000 contributed by the anonymous donor Tuesday matches the local woman's seed money, doubling the endowment fund's balance to $202,000.