feeder money

USAGE SUMMARY

The phrase "feeder money" is correct and usable in written English.
It can be used in contexts related to finance or investment, typically referring to funds that are used to support or sustain a larger investment or project. Example: "The startup relied on feeder money from angel investors to develop its initial product before seeking larger venture capital."

✓ Grammatically correct

News & Media

Science

Human-verified examples from authoritative sources

Exact Expressions

2 human-written examples

"It's easy money and inevitably will be used as feeder money to set up fronts and to buy into legitimate businesses, especially in the construction and the garbage-removal industries".

The New York Times

J.H: When I talk to high-tech in Cambridge, they say they mostly [get] smaller-scale feeder money to get ideas tested.

Science Magazine

Human-verified similar examples from authoritative sources

Similar Expressions

52 human-written examples

He has sued the feeder funds that funneled money into Madoff's firm.

The New York Times

Access International is one of several so-called feeder funds that funneled money from investors across the globe into Mr. Madoff's collapsed firm.

The New York Times

I understand the anger of those investors with Bernard L. Madoff who lost money through feeder funds and are now ineligible for Securities Investor Protection Corporation coverage ("Investors in a Competition for a Piece of the Madoff Pie," Business Day, June 29).

The New York Times

Some professional investors put money with feeder funds linked to Bernie Madoff, for example, even though statistical analysis suggested his performance record was implausibly smooth.Some of this faulty decision-making may also reflect the underlying rationale of hedge-fund investments.

The Economist

North Americans invested mainly through money managers, feeder funds and other hedge funds, while outside the United States, the common intermediaries were banks, using their networks in countries like Spain to offer Madoff-linked products to retail customers.

The New York Times

But "at least as early as the 1980s," the S.E.C. asserted, Mr. DiPascali was helping Mr. Madoff create fictitious trades to generate phantom returns for particular accounts — specifically, accounts set up by some early feeder funds, which steered money from other investors into Mr. Madoff's hands.

The New York Times

Roseman: Bear in mind, David, that most of Madoff's modus operandi as a firm, as a person, was to go out and solicit the funds of funds who, in fact, acted as fund loaders as the common term has come about, feeder fund, to feed money into his fund.

Forbes

In a lawsuit unsealed on Thursday, the Madoff trustee alleges that the bank began drawing up plans in 2006 to sell structured notes tied to the returns of the many so-called feeder funds that funneled money to Madoff.

Huffington Post

They are looking to build cases against certain investors and "feeder" funds that funnelled their money to Mr Madoff.

The Economist

Expert writing Tips

Best practice

When discussing investments or business models, use "feeder money" to specifically denote funds that contribute to a larger financial structure or system. Ensure that the context clearly indicates the 'feeding' relationship.

Common error

Avoid using "feeder money" interchangeably with general investment terms like "seed capital" or "venture capital". "Feeder money" implies a specific directional flow and sustaining function within a broader financial ecosystem, unlike general investment which may not have this inherent hierarchical relationship.

Linguistic Context

The phrase "feeder money" functions primarily as a noun phrase, specifying a type of financial resource. As Ludwig AI explains, it denotes funds that supply or contribute to a larger entity, operation, or investment. The phrase acts to categorize a source of funds based on its role.

Expression frequency: Rare

Frequent in

News & Media

66%

Science

34%

Formal & Business

0%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "feeder money" refers to funds that contribute to a larger entity or operation. As Ludwig AI confirms, it is grammatically correct and can be used to describe the directional flow of financial resources. Though relatively rare, it appears in both news and science contexts, indicating a neutral register. When using this term, ensure clarity in demonstrating the "feeding" relationship. For alternative expressions, consider "seed funding" or "supporting funds", depending on the specific context you wish to convey.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

supporting funds

Emphasizes the role of financial resources in maintaining or aiding a project.

seed funding

Refers to initial capital used to start a business.

initial investment

Highlights the act of putting money into something with the expectation of a return.

primary funding

Focuses on the main source of money for an operation.

start-up capital

Specifically denotes funds used to launch a new venture.

early stage financing

Pertains to the financial support provided during the initial phase of a project or company.

follow-on investment

Highlights the funds invested after initial ones, to sustain the previous investment.

venture capital

Implies investment in high-growth companies.

development funds

Suggests money allocated for growth or improvement projects.

sustaining resources

Highlights resources that allow something to continue over time.

FAQs

What is meant by "feeder money"?

"Feeder money" refers to funds that are used to supply or support a larger financial entity or project. It suggests a directional flow of resources into a central operation or investment.

How does "feeder money" differ from "seed funding"?

"Feeder money" specifically implies a continuous supply to a larger entity, whereas "seed funding" is the initial capital to start a new venture. "Feeder money" sustains, "seed funding" initiates.

What are some examples of "feeder money" in business?

Examples include funds funneled into a larger investment scheme or money used to set up fronts for illicit activities. In high-tech, smaller-scale investments used to test ideas can also be considered "feeder money".

Is "feeder money" a formal financial term?

While understandable, "feeder money" is not as formal as terms like "venture capital" or "start-up capital". Its use is more descriptive, indicating the role of the funds rather than a specific investment type.