Fundraising
Bridge Round
A small fundraise between larger priced rounds, typically done via SAFE or convertible note to extend runway to a key milestone.
A bridge round is interim financing that bridges a startup from its current cash position to either a larger priced round or a key operational milestone. Bridge rounds are typically smaller than the main round they precede and use simple instruments (SAFEs or convertible notes) to avoid the overhead of a fully priced round. Common reasons for bridges: the company needs 3-6 more months to hit a milestone that will unlock better Series A terms; market conditions are poor; or existing investors want to show continued support. Bridge rounds are often led by existing investors (called 'insider bridges'). The danger: repeated bridges without a clear path forward can signal to external investors that the company is struggling.