What is the meaning of Bridge financing?

Temporary funding that will eventually be replaced by permanent capital from equity investors or debt lenders. In venture capital, a bridge is usually a short term note (6 to 12 months) that converts to preferred stock. Typically, the bridge lender has the right to convert the note to preferred stock at a price that is a 20% discount from the price of the preferred stock in the next financing round. See: Wipeout bridge and Hamburger Helper bridge.

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APABarry Goldsmith. (2010). bridge financing. Retrieved September 25, 2026, from http://smartdefine.org/bridge_financing/definitions/1148968
ChicagoBarry Goldsmith. 2010. "bridge financing" http://smartdefine.org/bridge_financing/definitions/1148968 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, bridge financing, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/bridge_financing/definitions/1148968>.
MLABarry Goldsmith. "bridge financing" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/bridge_financing/definitions/1148968>