What Is Bridge Round?
A bridge round is a short-term funding round raised to support a company between two larger financing rounds, usually to extend the runway or reach key milestones.
Bridge Round Meaning
The bridge round's meaning centres on timing and continuity. To define bridge round in practice, it is a temporary injection of capital, often from existing investors, used to cover operational costs until the next priced round closes. A clear bridge round definition includes its purpose: stabilising cash flow, completing product development, or improving metrics ahead of a valuation-setting round. Bridge rounds are usually faster to close, may involve convertible instruments like ASAs or CLNs, and often come with a discount or valuation cap as an incentive.
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