Article · 10 min read

Startup Funding Explained: How to Raise a Bridge Round

Steve Barsh · Dreamit Ventures Free Intermediate

This is the tactical companion to the framing: it hands you the actual structure of the ask so you show up with a specific number and a milestone, not a runway plea. 'Build a bridge, not a pier' is the whole discipline in one line, tie the money to a fundable value inflection point and size it for at least three months of cushion past your next close. It also coaches you on the awkward question every Indian insider will ask (are the existing backers putting money in?) and how to answer without triggering a negative signal, plus the discount/cap terms that keep an insider convertible fast and clean.

• Raise a bridge to a specific fundable milestone, not just to extend runway; 'build a bridge, not a pier.'
• Size the round for at least three months of runway past your next round's close so you never bridge to another bridge.
• Be ready to state whether existing investors are participating, and structure the note (roughly a 20% discount or a cap) to price the risk fairly.