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.
- Parte del discurso:
- Industria/ámbito: Servicios financieros
- Categoría:
0
Other terms in this blossary
Creador
- kirb
- 100% positive feedback