Bridge Round
A Bridge Round is a type of temporary funding that companies raise to keep their business running until they can secure a larger investment. Think of it like a financial bridge that helps a company get from one point to another. Companies typically seek bridge rounds when they need extra money to reach important goals or stay afloat before their next major funding round. This term is commonly used in venture capital, startup financing, and investment banking discussions. You might also hear it called 'bridge financing' or 'bridge funding'.
Examples in Resumes
Led Bridge Round fundraising efforts, securing $2M in interim financing
Structured multiple Bridge Funding deals for pre-Series A startups
Advised technology startups on Bridge Financing strategies between major funding rounds
Typical job title: "Venture Capital Associates"
Also try searching for:
Where to Find Venture Capital Associates
Professional Networks
Industry Resources
- • PitchBook
- • CB Insights
- • Crunchbase
Events & Conferences
Example Interview Questions
Senior Level Questions
Q: How do you evaluate whether a company needs a bridge round versus other financing options?
Expected Answer: Should discuss analyzing company financials, burn rate, market conditions, growth metrics, and alternative funding sources. Should mention importance of understanding company's timeline to next major milestone.
Q: What terms would you typically include in a bridge round, and why?
Expected Answer: Should explain common bridge round terms like discount rates on next round, caps, conversion rights, and warrants. Should demonstrate understanding of protecting both investor and company interests.
Mid Level Questions
Q: What are the key risks to consider when evaluating a bridge round opportunity?
Expected Answer: Should discuss company runway, market conditions, existing investor participation, and likelihood of securing next round. Should mention red flags like multiple bridge rounds.
Q: How would you structure a bridge round for a struggling company versus a high-performing one?
Expected Answer: Should explain different approaches to terms, security types, and investor protections based on company performance and risk level.
Junior Level Questions
Q: What is a bridge round and when is it typically used?
Expected Answer: Should explain basic concept of interim financing between larger rounds and common scenarios when companies need bridge funding.
Q: What are the basic components of a bridge round term sheet?
Expected Answer: Should identify key elements like investment amount, valuation, conversion terms, and basic investor rights.
Experience Level Indicators
Junior (0-2 years)
- Basic financial analysis
- Understanding of startup funding cycles
- Term sheet basics
- Financial modeling fundamentals
Mid (2-5 years)
- Deal structuring
- Due diligence processes
- Negotiation skills
- Portfolio company monitoring
Senior (5+ years)
- Complex deal structuring
- Investment strategy development
- Risk assessment and mitigation
- Stakeholder management
Red Flags to Watch For
- Lack of understanding of basic funding structures
- No experience with financial modeling
- Poor grasp of venture capital terminology
- Limited knowledge of startup ecosystems
- No experience with due diligence processes
Related Terms
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