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Simple English definitions for legal terms
front-end money
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A quick definition of front-end money:
Front-end money is also known as seed money and refers to the initial funds needed to start a new business. It is the money required to cover the costs of setting up a business, such as buying equipment, renting a space, and hiring employees. Think of it as the money needed to plant the seed of a new business idea and get it off the ground.
A more thorough explanation:
Front-End Money
Front-End Money, also known as Seed Money, refers to the initial capital required to start a new business venture.
- A group of entrepreneurs pooling their savings to start a new tech company.
- A small business owner taking out a loan to purchase equipment and inventory for their store.
These examples illustrate how front-end money is used to fund the early stages of a business. Without this initial investment, it would be difficult for a new venture to get off the ground and become profitable.