For a startup, a bridge financing is a short-term loan or an equity investment that is used to help the company get from one point to another, usually until it can secure longer-term funding or achieve a specific milestone. These bridge loans are often provided by investors or venture capital firms and are typically structured as convertible notes (which convert into equity at the next financing round) or as short-term loans to be paid back within a specific timeframe.
Navigate startup fundraising with confidence using our comprehensive guide on convertible notes. Learn their mechanics, optimal use cases, and how they stack up against SAFEs and priced rounds. Essential reading for startups aiming for savvy financing decisions.