Bridge round

A bridge round is financing intended to carry a company from its current position to a specific later event, such as a larger priced round, profitability, an acquisition process, or a major product milestone. It can be structured as equity, convertible notes, or SAFEs. The phrase describes the purpose of the capital rather than one required legal instrument.

Investors look closely at why the bridge is needed. A constructive bridge may fund a clear opportunity whose timing does not fit the original plan. A defensive bridge may be necessary because growth slowed, spending ran ahead of plan, or fundraising conditions changed. In either case, the deck should state the milestone the capital reaches, the expected runway, and what will be different at the next financing. Calling a round a bridge does not remove dilution or repayment risk. Founders should model the conversion terms and avoid relying on an unspecified future round as the only path forward.