Bridge Round
Definition
A short-term financing event designed to extend a company's runway until the completion of a larger, planned financing round or a liquidity event. Bridge rounds are typically structured as convertible notes or SAFEs and are often led by existing investors exercising insider knowledge of the company's trajectory. While necessary in some circumstances, repeated bridge rounds may signal commercial or fundraising difficulties and can result in significant dilution if conversion terms are punitive.
Related Terms
Related FAQ
A bridge round is short-term financing (typically SAFEs or convertible notes) that bridges the gap between current funding and the next institutional round, allowing the company to extend runway while avoiding a down round.
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