Bridge Round
Also known as: Extension round, Gap financing, Seed extension, Pre-Series A bridge
A short-term funding raise designed to extend runway to a defined milestone — typically the next major funding event. Not a standalone funding strategy; the narrative must be explicit about the destination milestone.
Full Definition
A bridge round is a financing event designed to extend a company's runway to a specific, defined milestone — most commonly the next major funding round. In the GAITS Funding Readiness Framework, Seed+ is structured as a bridge round: its purpose is explicitly to reach the milestone that Series A investors require, and the narrative must be clear about what that milestone is.
Bridge rounds are non-strategic when framed as general runway extension. Funders at bridge stage are not providing long-term capital; they are making a short-term bet that the team will hit the defined destination and successfully raise the next round. A bridge pitch that cannot name a specific milestone — a clinical readout, a regulatory submission, a revenue target, a number of signed contracts — is not a credible bridge pitch.
Bridge rounds typically involve existing investors extending their position, or new investors taking a small stake in exchange for preferential terms in the next round. In healthcare innovation, bridge rounds are common between Seed and Series A, and between Pre-Seed and Seed, particularly where a regulatory submission or clinical study result is the gating event for the next major raise.
A digital health company has completed ten clinical deployments and has strong outcome data. A target Series A lead has told them they need a formal health economic study and two additional enterprise contracts before they will commit. The company's existing Seed capital will run out in six months — before this evidence can be generated. They raise a £1.2M bridge round from two existing angels and one new investor, structured as a convertible note converting at a discount in the Series A. The pitch is explicit: this capital funds the health economic study and two business development hires; the destination is a Series A close within 12 months.