funds put up by venture capitalists to finance a new business. Often, seed money involves a loan or investment in preferred stock or convertible bonds. A major purpose of seed money is to form a basis for additional financing to aid in the firm's growth.
Real Estate:The initial capital contributed by a project developer. Also called front end money.Venture Capital:The initial capital investment in a new company by venture capital. Venture capitalists generally retain rights or warrants to common stock, when the sponsored company issues stock in an initial public offering. This level of financing precedes intermediate mezzanine financing, or second-stage financing. See also start-up financing.
venture capitalist's first contribution toward the financing or capital requirements of a start-up business. It frequently takes the form of a loan, often subordinated, or an investment in convertible bonds or preferred stock.
venture capitalist's first contribution toward the financing or capital requirements of a start-up business. It frequently takes the form of a loan, often subordinated, or an investment in convertible bonds or preferred stock. Seed money provides the basis for additional capitalization to accommodate growth.
amounts needed to begin a real estate development, prior to being able to borrow under a mortgage loan. Required costs include those for a feasibility study, loan application and loan commitment fees, attorney and accountant fees, land option costs, and others.
Example: To begin a $2,000,000 condominium development, about 2% of the total cost is needed as seed money.
