'externally-funded' originates from the combination of 'external' and 'funded'. 'External' comes from Latin 'externus', meaning 'outside', and 'funded' is derived from 'fund', which comes from Latin 'fundus', meaning 'bottom' or 'base'.

'Externus' transformed into the Old French word 'externe', and eventually became the modern English word 'external'. 'Fundus' evolved into the Old French 'fonder', and eventually became the modern English word 'fund'.

Initially, 'external' meant 'outside', and 'fund' meant 'to provide financial support'. The combined term 'externally-funded' retains these meanings, indicating financial support from outside sources.