The Advantages and Disadvantages of Bridge Financing Investments in Venture Capital Backed Companies

December 6, 2011

Bridge financings are useful vehicles for injecting capital into private companies to carry them to the next milestone or equity financing. Please join Ropes & Gray partners Geoff Leonard and Ryan Murr as they discuss the advantages and disadvantages of these financings as well as the negotiation of terms that favor investors or companies. Topics include:

  • Why these transactions are frequently used in volatile investment environments
  • Terms and negotiating points that favor companies or investors
  • The pros and cons of bridge loans versus equity financing rounds
  • Considerations in company and transaction valuations.