What is a Bridge Round?
A bridge round, also known as bridge financing, refers to a type of funding round that is designed to provide short-term financing to a company in order to bridge the gap between larger funding rounds.
Bridge rounds are typically used when a company needs additional capital to continue operating but is not yet ready to seek a full round of funding from investors.
During a bridge round, investors provide funding to the company in exchange for equity or convertible debt that can be converted into equity at a later date.
Bridge rounds are often used by startups to fund specific projects or initiatives, such as product development or marketing campaigns, while they continue to prepare for a larger funding round.
