The Grant-in-Aid Program is a State sponsored seed grant program whereby the State of Minnesota provides the University of Minnesota approximately $2 million annually to fund new faculty research. Recently, the Graduate School engaged in an internal review of the Grant-in-Aid program. The purpose of the review was to determine how effective their seed grant program was in enabling University faculty to obtain additional grant funding from agencies outside the University. The following study discusses this review in some detail. An econometric analysis of survey data indicates that the seed-grant program is highly effective in enabling faculty to gain additional research funding. Further it was found that the ability of a faculty member to obtain additional extramural funding is dependent upon the discipline in which the research is being conducted.