Bridge Round
A smaller funding round designed to extend a startup's runway until it can raise a larger round or reach a specific milestone.
What is Bridge Round?
A bridge round is a short-term funding solution — enough capital to "bridge" the gap between now and a larger fundraise or major milestone. Bridge rounds are typically smaller than full rounds (often $200K-$2M) and come from existing investors or angels.
Bridge rounds are commonly structured as convertible notes or SAFEs that convert into the next priced round. This means bridge investors get their investment converted to equity at a discount when the full round closes.
Bridge rounds can be a lifeline or a warning sign, depending on context. A bridge to close a nearly-done Series A is different from a bridge because the company is struggling to raise.
Why it matters
Bridge rounds exist because timing is rarely perfect. Your runway might run out 3 months before your Series A is ready to close. Without a bridge, you'd be forced to accept unfavorable terms or shut down.
However, needing a bridge can signal to investors that something isn't working — either the business isn't hitting milestones or the market is skeptical. Multiple bridge rounds are a red flag. Ideally, you plan your fundraising timeline so a bridge isn't necessary.
Example
You have 4 months of runway and estimate your Series A will take 5-6 months to close. You raise a $500K bridge from your seed investors on a convertible note with a 20% discount to Series A price. This adds 5 months of runway at your current $100K/month burn, giving you the buffer to close the Series A.
How RunwayCal helps
RunwayCal helps you avoid needing a bridge by tracking runway in real-time and alerting you when it's time to start fundraising. If you do need a bridge, scenario modeling shows exactly how much you need and how long it buys you.
Common mistakes
- 1Treating a bridge as a permanent solution instead of a temporary measure
- 2Not having clear milestones that the bridge will help you reach
- 3Raising a bridge too late when desperation reduces your negotiating power
Plan your fundraising timeline — don't get caught short
RunwayCal tracks your runway and alerts you when it's time to start raising — so you're never forced into an emergency bridge.
Track your runway → Start free