Bridge rounds are a late stage rage

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Most startups are not have a clean run from their pre-IPO round when it comes to fundraising. Fast-growing tech companies sometimes stop at certain milestones, such as raising a little extra money from a previous round.

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This becomes especially true when the economy changes for the worse and start-ups get an incentive to raise an extra round, or the bridge is round. Why are these rounds potentially more popular in short macroeconomic periods? Because if startups can buy a little more time to grow before raising their next price round, they will be better able to defend their latest valuation or perhaps even outperform it when they officially raise.

Data from the charter, a software service that maintains company capitalization tables and the like, points out that bridging rounds — “a type of bridging funding that companies can choose while they wait for a larger fundraiser,” in its own language — are becoming increasingly popular. as TechCrunch expects given our posts on the subject. However, where the type of financing gaining the most popularity surprised me a bit. As it turns out, the companies with the least capital raised do not make the most profits from bridge building activities.

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Credit: techcrunch.com /

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