seed money

money for starting up a new enterprise

TRANSLATION

seed money = das Startkapital --- GOOGLE INDEX seed money: approximately 500,000 Google hits

STATISTICS

IN THE PRESS

The space agency has said it wants American companies to fill the void by 2017 and has doled out SEED MONEY to spur innovation.

(New York Times)

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The ease of developing a product and getting SEED MONEY gives entrepreneurs a lot of positive feedback early on.

(The New Yorker magazine)

Did you
know?

seed money
noun phrase

- money used for setting up a new enterprise

(Merriam-Webster Dictionary)

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Seed money, or seed capital, is the first round of capital for a start-up business. It gets its name from the idea that early stage financing plants the seed that enables a small business to grow, sort of like a tomato garden.

Obtaining funding is one of the most critical aspects of starting a small business. In fact, many businesses fail or are prevented from even starting due to a lack of capital. Although obtaining financing can be difficult for any small business, it is particularly hard for new ventures.

Since new ventures lack a track record, potential lenders and investors are often skeptical about their prospects for success. Nonetheless, the persistent would-be entrepreneur, if armed with a sound business plan and the necessary skills, can usually obtain funding for his/her dream eventually, and maybe even have enough tomatoes for a sandwich.

(adapted from Inc. magazine)

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SYNONYMS

seed capital, start-up capital, venture capital, venture money

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SMUGGLE OWAD into today's conversation

"You need a good business plan in order to attract seed money."

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