What Is a Bridge Round?

A bridge round is a smaller, short-term financing that carries a company to its next major round, or to a sale, when its current cash is running low.

Category: Funding and investors · Reviewed 11 November 2026 · 2 min read

How it works

A bridge gives a company extra runway between two bigger events. Existing investors often supply it, because they already know the business and can move fast. It is commonly structured as a convertible note or SAFE, which avoids setting a new valuation, though it can also be priced equity.

Bridges are used for different reasons. Sometimes the company is doing well and wants a few extra months to hit a milestone before raising a larger round on better terms. Other times growth is slower than planned and the bridge is a way to survive. Investors read the situation closely, so how a bridge is described matters.

Example

Suppose a startup has $200,000 left, about three months of cash, and a Series A process that is taking longer than planned. Three existing investors put in $400,000 on convertible notes with a discount to the next round. That adds roughly six months of runway to close the raise or reach a revenue target.

Why founders care

A bridge can prevent a forced shutdown, but it adds layers to the cap table and can signal weakness to new investors if it is not explained. Stacked notes or SAFEs with different terms also make later dilution harder to model. Ask a lawyer how a bridge interacts with existing agreements, including any rights that earlier investors hold.

Common mistakes

Using a bridge to delay hard decisions instead of reaching a specific milestone.
Taking money on unfavorable terms because time is short.
Not modeling how conversion affects ownership at the next round.
Failing to tell new investors about the bridge up front.

Frequently asked questions