Bridge rounds are late-stage rage – Meczyki.Net

Most Startups Don’t When it comes to fundraising, IPOs run through clean from their pre-seed rounds. Fast-growing tech companies sometimes stall at certain stages, for example, to raise a little extra cash against the terms of their previous rounds.

This becomes especially true when the economy changes for the worse and startups are encouraged to raise an expansion round, or pull round. Why are those periods potentially more popular in less macroeconomic periods? Because if startups can buy a little more time to grow before raising their next price round, they may be able to better defend their most recent valuation, or perhaps even surpass it when they formally rise. .

information Carta. From, a software service that supports companies’ cap tables and the like, indicates that bridge rounds — “a type of interim financing that companies can choose from while they wait for a large fundraising,” indicate that their In the language – are growing in popularity, as Meczyki.Net is expected given our reporting on the matter. Although, where The funding varietal gaining the most popularity was a bit surprising. Companies raising the least amount of capital aren’t seeing the biggest gains in bridge round activity, it turns out.