Love Money
Seed money or capital given by family or friends to an entrepreneur to start a business. The decision to lend money and the terms of the agreement are usually based on qualitative factors and the relationship between the two parties, rather than on a formulaic risk analysis. Investopedia Says:
Love money is usually given to entrepreneurs who have proved their responsibility to close family and friends over the years, but who fail to meet the that capital requirements that financial institutions look for in borrowers. An angel investor's love money is sometimes the only way a business can get off the ground; this type of financing can allow for growth that would be impossible through traditional financing channels. Related Terms:
Angel Investor
Funding Gap
Mom And Pop
Seasons
Seed Capital
Venture Capital
Venture Capitalist |