Bridge Round

Also called Bridge Financing, Bridge Loan, and Seed Extension

A smaller raise between two main rounds, meant to extend runway until a larger round or a milestone. Often done on a SAFE or note from existing investors.

Why it matters

A bridge can be a lifeline to reach the metrics a bigger round needs, or a warning sign that the last round did not go far enough. Investors read which one it is closely.

For example

Six months short of the metrics a Series A needs, a startup raises a 5 crore bridge on a SAFE from its existing seed investors to reach them.

Go deeper

The 3 Types of VC Bridge Rounds: 0x, 1x and 10x SaaStr · article Lemkin, who has funded and passed on many bridges, tells you bluntly which bucket you fall into: the 0x 'bridge to nowhere' (founder hid the burn until weeks of cash were left), the 1x survival extension, or the 10x bridge for a proven winner hit by a temporary headwind. His single most useful line for an Indian founder short on runway: communicate cash position monthly and raise the topic with 6 to 8 months left, not at crisis, because that is the difference between a confident insider yes and a panicked one. It shows you the exact founder behavior that reads as opportunity versus desperation. Open saastr.com →

Related terms

Also in Starting Up

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

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