The Bridge to Nowhere- The Problem with Technology Companies Seeking "Bridge Rounds"
davidpaul.substack.com
In the world of startup funding, it's not uncommon to see companies seek out "bridge rounds" to secure the capital they need to move forward. I wrote about this recently in a blog $5M in with $1M in ARR. Typically, these rounds are used to bridge the gap between larger funding rounds and help companies maintain their momentum without having to give up a significant amount of equity. But recently, we've seen a rise in the number of technology companies seeking bridge rounds when they're really not ready for them. These companies may have millions of dollars in funding already, but they're struggling to justify their valuations and are essentially trying to bridge the gap between a shitty investment decision and a better one.
The Bridge to Nowhere- The Problem with Technology Companies Seeking "Bridge Rounds"
The Bridge to Nowhere- The Problem with…
The Bridge to Nowhere- The Problem with Technology Companies Seeking "Bridge Rounds"
In the world of startup funding, it's not uncommon to see companies seek out "bridge rounds" to secure the capital they need to move forward. I wrote about this recently in a blog $5M in with $1M in ARR. Typically, these rounds are used to bridge the gap between larger funding rounds and help companies maintain their momentum without having to give up a significant amount of equity. But recently, we've seen a rise in the number of technology companies seeking bridge rounds when they're really not ready for them. These companies may have millions of dollars in funding already, but they're struggling to justify their valuations and are essentially trying to bridge the gap between a shitty investment decision and a better one.