Bridge Financing
Bridge financing is a type of short term financing used by startups to “bridge” the gap between larger, more permanent funding rounds (e.g., between a Seed and Series A, or between Series B and Series C). It’s typically meant to provide enough runway to reach the next milestone that will attract institutional investors or improve valuation.
Bridge financing is typically raised through convertible notes, SAFEs (simple agreements for future equity), or short-term loans. The financing is usually purpose-driven to fund specific goals within a 3 to 12-month time period, such as hitting revenue targets, launching a product, or closing a major partnership.
Why startups use bridge financing:
Extend Runway: Keep operating until the next equity round.
Increase Valuation: Buy time to grow metrics so the next round can be raised at a higher valuation.
Cover Delays: Offset slower-than-expected fundraising or unexpected expenses.
Tactical Opportunities: Seize immediate growth opportunities.
Bridge financing is like startup oxygen—meant to keep your business alive just long enough to sprint into the next big funding round. Of course, if that round doesn’t materialize as planned these pricey debt bridges can really strain the company.
Financial Glossary
Use Lighter Capital's glossary to understand common terms used in finance and investing, so you can build financial literacy and make informed decisions for your startup.
Bridge Financing
Bridge financing is a type of short term financing used by startups to “bridge” the gap between larger, more permanent funding rounds (e.g., between a Seed and Series A, or between Series B and Series C). It’s typically meant to provide enough runway to reach the next milestone that will attract institutional investors or improve valuation.
Bridge financing is typically raised through convertible notes, SAFEs (simple agreements for future equity), or short-term loans. The financing is usually purpose-driven to fund specific goals within a 3 to 12-month time period, such as hitting revenue targets, launching a product, or closing a major partnership.
Why startups use bridge financing:
Extend Runway: Keep operating until the next equity round.
Increase Valuation: Buy time to grow metrics so the next round can be raised at a higher valuation.
Cover Delays: Offset slower-than-expected fundraising or unexpected expenses.
Tactical Opportunities: Seize immediate growth opportunities.
Bridge financing is like startup oxygen—meant to keep your business alive just long enough to sprint into the next big funding round. Of course, if that round doesn’t materialize as planned these pricey debt bridges can really strain the company.
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“When the time was right for us to make a move in the market, Lighter Capital was an easy way for us to get the growth funding we needed without diluting our control. Working with Lighter Capital has been a great experience.”
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Why Choose Lighter Capital?
Lighter Capital is the largest provider of non-dilutive debt capital to start ups. Over the past decade, we’ve invested hundreds of millions of dollars into growth companies.
600+ Companies Funded
$350M+ Invested
1,000+ Rounds of Funding
135+ Startup Community Members
Get Capital to Grow. Keep Your Equity.
Lighter Capital's non-dilutive financing provides startups with a quick upfront injection of growth capital based on the business's recurring revenue streams. That means you get to keep your equity and control of the business, and your loan payments are right-sized to what the business can support. Our financing also scales with you as you grow.
Apply online to find out how much you may qualify for.
