Let's understand Bridge round today š - Bridge rounds are funding rounds that can help startups ābridgeā the gap between two major funding rounds. - Startups seek different types of funding from investors. For some entrepreneurs, the initial seed capital is enough to sustain the operations until the next funding round. However, some startup founders require additional money between financing rounds; therefore, they have to raise bridge funding. - Generally, a bridge round is appropriate for startups with strong growth potential, but that need some addition funding to get them over a hurdle. - In most cases, only existing investors participate in this round with the goal of extending the startup's runway. - Many large VC firms typically allocate extra funds specifically for participating in their portfolio's bridge rounds. - Bridge rounds are often priced at the last round price but sometimes bridge rounds are priced via notes at a discount to the next round.
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