grubstake
Definition
Noun:
- Funds provided to support a prospector or entrepreneur: A
grubstakeis money or supplies advanced to someone, typically a prospector searching for minerals or someone starting a business, in exchange for a promised share of any future profits.
Verb:
- To supply with funds in return for a share of profits: To
grubstakesomeone means to provide them with the necessary funds or resources to begin an enterprise, with the agreement that you will receive a portion of the profits if it succeeds.
Usage Examples
Noun:
- The old miner needed a
grubstaketo buy equipment for his new claim. - She provided the
grubstakefor her friend's startup company.
Verb:
- The investor agreed to
grubstakethe young geologist's expedition. - They
grubstakedthe venture in return for a 20% stake in the company.
Advanced Usage
- Historical Context: The term originates from the mining camps of the American frontier, where "grub" meant food. A stake was an advance of supplies, not just money.
- In the 19th century, a storekeeper might
grubstakea prospector with a shovel, beans, and bacon.
Variants and Related Words
- Stake (noun/verb): A share or interest in a business venture, or the act of providing resources for such a venture. While similar, a "stake" is a broader financial term, whereas a specifically implies funding for the initial, risky phase.
- Venture capital (noun): Money provided by investors to startup firms with long-term growth potential. This is a modern, institutional form of what was historically a .
Synonyms
- Noun: Advance, backing, seed money, startup capital.
- Verb: Finance, fund, back, bankroll, subsidize.
Related Phrases
- To have a stake in something: To have a share or interest in the success of an enterprise.
- By providing the
grubstake, he had a significant stake in the mine's output.
Noun
-
funds advanced to a prospector or to someone starting a business in return for a share of the profits
Verb
-
supply with funds in return for a promised share of profits
