Bridge-to-Equity: Extend Runway Without a Down-Round

Bridge-to-Equity: Extend Runway Without a Down-Round

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Wed Jul 16 2025

1 min read

techadmin

techadmin

Raising equity in a cooling market can crush valuation. A small “bridge” loan buys time—if you size it right.

Decision Grid

SituationBridge LoanEquity Top-Up
Need < 6 months runway
Valuation dip expected
Strategic lead investor secured

Sizing Formula
Bridge 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.

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