SEED MONEY Meaning and
Definition
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Seed money is a financial resource provided to support the initiation or establishment of a new business, project, or venture. It serves as an initial capital infusion to cover the early stages of development, such as researching and testing the viability of an idea or business concept. The term "seed" refers to the early stage of growth, emphasizing the notion of sowing the first seeds for potential future success.
This early-stage funding is typically provided by investors or financial institutions, including angel investors, venture capitalists, or government agencies. Seed money is generally used to support various activities, including market research, product development, prototype creation, hiring key personnel, and initial marketing efforts. It aims to help entrepreneurs transform their ideas into tangible businesses by providing the necessary resources and capital required to initiate the early phases of operations.
Seed money is considered risky investment capital as it generally comes with a higher degree of uncertainty. Investors providing seed money often take on substantial risk as they invest in unproven concepts or businesses that are in their nascent stages. Consequently, return on investment (ROI) expectations for seed money investments can be high.
Overall, seed money plays a critical role in enabling entrepreneurs to pursue their innovative ideas, offering an initial financial boost necessary to lay the foundation for future growth and sustainable operations.
Common Misspellings for SEED MONEY
Etymology of SEED MONEY
The etymology of the phrase "seed money" refers to the early funding provided to start a business or initiate a project. It is derived from the concept of planting a seed, which symbolizes the initial investment that has the potential to grow and become fruitful in the future. The term "seed money" originated in the United States in the mid-19th century and draws its metaphorical meaning from agriculture and horticulture, where a small seed is sown to produce a larger crop. By extension, "seed money" implies investing a small amount of capital to foster the growth and development of a venture.
Idioms with the word SEED MONEY
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seed money
Seed money is an initial funding provided to start a business or project, typically used for research, development, and initial expenses.
Similar spelling words for SEED MONEY
- seedman,
- sit-down money,
- man-o'-war suit,
- big-city man,
- seidman,
- sad man,
- pseudo money,
- city man,
- sediment,
- set menu,
- man sot,
- sedimentary,
- sadio mane,
- sweaty man.
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