Bridge capital, or bridge investments, have often been seen in the past as last ditch attempts to breathe life into a dying business venture. The tables are turning on this perception, however, and bridge investments can bring investors a chance to increase profitability and shareholder trust. The best way to ensure this strategy is successful is to make a plan, and to follow the plan to the letter. Be careful of giving away too much of the company to investors.
- While a bridge round can often be a last ditch effort to save a floundering business, it can serve other purposes too.
- Such a round might be instituted with the hope of boosting a business up the ladder towards profitability, thereby ensuring more profitable rounds in the future.
- Historically bridge loans were seem as hail Mary plays. Today’s business trends cast the bridge loan in a more prosperous light.
“Entrepreneurs are increasingly turning to bridge “micro-rounds” as a means to reach profitability, gain independence and accelerate business metrics.”
Read more: https://www.entrepreneur.com/article/341456