What’s up with bridge rounds in this macro environment
What’s up with bridge rounds in this environment? Should I avoid at all costs or are these not necessarily a red flag in and of themselves given the environment?
Trending Content - Venture Capital Forum
Career Resources
m_1
It's a great opportunity to potentially acquire positions at lower cost but it requires you not to outsource conviction to things like signaling and party rounds. Ultimately if a company is choosing to raise in this environment, it means it either 1) needs the cash or 2) thinks the market is only going to get worse, so take that how you will. If you find a business that is exceptional but just needs a small bridge to make it through this winter because they had raised 1.5 years ago and planned to go out in the fall for the next round but, maybe worth investing. Bridge round are not inherently bad. As with all things, it depends on circumstances and contains nuance. If you don't want to do significant diligence though, wouldn't suggest it.
Sed dolorum perspiciatis tempore ipsam consequatur provident fugiat. In similique cumque quo qui quos.
Odit et natus consequatur ea. Rem non vel laudantium quo repellat similique quae. Corrupti nostrum enim nemo laboriosam unde libero provident. Consequatur non voluptatem rem quidem ipsum unde quia.
Mollitia a consequatur possimus vero ea dolor ea. Perspiciatis porro aut voluptate sed non adipisci optio qui. Ipsum nihil qui cumque reiciendis et deserunt error vel. Ipsa velit rem cupiditate voluptas ut et ex. Qui dolores consequuntur voluptatem saepe. Neque aut qui maxime eos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...