What is Bridge Round?

A bridge round is short-term capital raised between major priced rounds to extend runway until a larger raise or a milestone. It's typically structured as SAFEs or convertible notes (sometimes from existing investors) so it's fast to close and defers the valuation debate to the next priced round. A bridge can be a confident move to reach better terms - or a sign the company couldn't raise a full round on schedule. Why it matters to you: bridges convert at the next round and add to the dilution stack, often with caps or discounts that compound your dilution. An 'insider bridge' from current investors can be supportive, but watch the terms - aggressive caps and discounts on a bridge can take a surprisingly large bite when they convert.