Definition, Meaning & Synonyms

grubstake

Noun

/ˈɡrʌbˌsteɪk/

Definition

A financial contribution given to someone to help them start a business or project, often with the expectation of future profits.

Examples

After receiving a grubstake from an investor, the miner was able to purchase the tools needed for his expedition.
The startup company secured a grubstake from a venture capitalist to launch their new app.
In the olden days, miners would rely on grubstakes to fund their search for gold.

Meaning

The term is often used in the context of mining or exploration, where a person receives funding or supplies to start their venture, typically in exchange for a share of the profits.