Wed Jul 16 2025
1 min read
Raising equity in a cooling market can crush valuation. A small “bridge” loan buys time—if you size it right.
Decision Grid
Situation | Bridge Loan | Equity Top-Up |
---|---|---|
Need < 6 months runway | ✔ | ✘ |
Valuation dip expected | ✔ | ✘ |
Strategic lead investor secured | ✘ | ✔ |
Sizing FormulaBridge Size = Net Burn × Months Needed + 10 % Buffer
Align repayment to the expected close of your next round, or insert a conversion clause at a pre-agreed cap.
Keywords: bridge financing UAE, runway extension, convertible loan, valuation protection, startup debt
Hashtags: #KlubAI #BridgeToEquity #RunwayExtension #StartupFinance #CapitalPlanning
Illustrative guidance; negotiate terms with professional advisors.