Bridge Round
Definition
Bridge Round: A bridge round is short-term financing meant to bridge a company to its next major funding round or milestone. It's typically structured as a convertible note or SAFE and is used when a company needs capital quickly but isn't ready for a priced round.
Example Usage
“We raised a $500K bridge from existing investors to reach profitability before our Series A.”
Common Misconceptions
Related Terms
Convertible Note
A convertible note is a form of short-term debt that converts into equity during a future financing round. It includes interest, a maturity date, and...
SAFE
A SAFE (Simple Agreement for Future Equity) is an investment contract that gives investors the right to receive equity in a future priced round. Creat...
Runway
Runway is the amount of time a startup can continue operating before running out of money, assuming current burn rate remains constant. It's calculate...
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