Metered funding

1 of our books defines this term.

More or less equivalent to staged investment, an investment technique where funding is provided in increments based on the results of preceding funding increments. Instead of buying $100 worth of candy believing you can eat it all, you buy $10 worth of candy, see if you are sick yet, then buy another $10 worth of candy, and continue the process, stopping when you feel sick. This makes it more cost-effective to reach your goal of eating until you feel sick, if such be your goal, as you might not need to spend the full $100. In business investments, it is a good way to reduce the risk of an investment by continually checking on the results of your investment before committing more money.

War and Peace and IT: Glossary, Mark Schwartz

See also Staged investments · Budget model · Business value · Call option · Cost of delay · Data asset

Filed under Metrics & Economics

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