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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.