A bridge round is money raised between priced rounds, usually to extend runway until the company hits the milestones it needs for the next one. Bridges are common, and they are not a bad sign by themselves. But they have costs worth understanding.
How common they are
In Carta's 2025 data, bridge rounds made up 29% of rounds at seed and Series A, 26% at Series B and 22% at Series C.1 The median time between Series A and Series B rose to 2.5 years, from 1.8 years in 2020.1
How bridges are usually structured
- SAFEs or convertible notes that convert at the next priced round, often with a cap and discount.
- Extensions of the last priced round, selling more of the same preferred stock at the same price.
- Often led by existing investors who want to protect their position.
What they cost
- Dilution that stacks on top of the next round's.
- Terms that can be richer than the last round: lower caps, bigger discounts, warrants or senior rights.
- Signal: a new lead will ask why the company needed more time, so have a clear answer tied to milestones.
What to have ready
- A specific plan: what the bridge money achieves and by when.
- A conversion model showing how the bridge converts at the next round.
- An updated cap table and a record of every instrument's terms.
Not legal or tax advice
This guide explains how these terms commonly work. Documents vary, and yours control. Talk to a lawyer before you sign.