A short-term loan given to a startup by investors serves to fund the company until the next round of financing. The bridge loan is usually converted into equity at the company’s next equity financing with some discount (and sometimes interest) to reflect the risk taken by the investor or the company not closing the next round.
A short-term loan given to a startup by investors serves to fund the company until the next round of financing. The bridge loan is usually converted into equity at the company’s next equity financing with some discount (and sometimes interest) to reflect the risk taken by the investor or the company not closing the next round.
