Bridge Rounds: A ‘Sometimes’ Necessary Evil

This can be the difference between your startup failing or living to fight another day…

Bridge Rounds: A ‘Sometimes’ Necessary Evil.

The additional capital needed between 2 rounds is called a bridge round.

Bridge rounds usually have a negative connotation since they are taken when cash in the bank runs dry.

However, in some cases, bridges can also be used to fuel growth.

In both cases, follow these 5 things to make sure you are prepared for a Bridge Round:

1) Regularly assess your startup’s performance and ask investors for feedback

2) Maintain monthly investor updates to keep stakeholders engaged & informed

3) Hire a controller (preferably with industry-specific experience) to manage spending

4) Know your startup’s Zero Cash Date & provide monthly updates to avoid surprises

5) Carefully select board members & lead investors who can support bridge financing