Bridge Note
Bridge Note is a short-term debt instrument used by startups to raise funds quickly, typically convertible into equity at a later financing round.
Benefits
Bridge notes give startups immediate cash without giving away equity right away. This method buys time for a better valuation.
Frequently Asked Questions
What is a bridge loan for startups?
A bridge loan for startups is a quick, short-term loan. It helps startups cover costs until they get more funding.
What is the bridge method of finance?
The bridge method of finance is a short-term funding strategy. It helps startups cover costs until their next big funding round.
What is bridge equation?
Bridge equation refers to the financial plan in a bridge round. It calculates the funding needed to reach the next major financing stage.
Key Takeaway
Bridge notes are a lifeline for startups needing quick funds. They offer a bridge to more substantial financing rounds.