bridge round

Beginner ๐Ÿš€ Startup / VC

Definition

Emergency funding meant to tide a startup over until the 'real' funding round happens, often at desperate terms. Named after a bridge because you're hoping it doesn't collapse before you reach the other side.

Example Usage

The Series B negotiations were taking forever, so they raised a $2M bridge round from existing investors to avoid running out of cash.

Origin

Banking terminology adopted into venture capital during the 1980s

Fun Fact

Bridge rounds often signal trouble to savvy investorsโ€”if a company needs a bridge, it usually means the next round is harder to close than expected.

Source: Venture capital financing terminology

Related Terms