Bridge Round Calculator
Bridge rounds usually take the form of a SAFE or convertible note with a cap and a discount. This calculator sizes the bridge, computes the effective valuation, and shows expected dilution at conversion.
Set 0 for no cap
The formula
Bridge size equals additional runway needed times current monthly burn. Effective valuation equals min(cap, next pre-money × (1 minus discount)). Investors get whichever gives them more shares.
FAQ
When should I do a bridge vs a priced round?+
Bridge if the delay is small (3-9 months of runway) and you expect a higher valuation at the next round. Priced round if the gap is large or investors demand it.
What is a market cap and discount?+
US early-stage: 15-25% discount and a cap set 1.25-2x above the last round or the expected next pre-money.
Does an uncapped note make sense?+
Rarely. Uncapped means investors take unlimited upside risk with no ceiling on the price they pay. Only offered when the founder has extraordinary leverage.
How is expected dilution computed?+
Bridge size divided by (effective valuation + bridge size). This is a simplification; actual dilution depends on the priced round mechanics and any pro-rata rights.
What if the next round never happens?+
Notes have a maturity date and mandatory conversion terms. SAFEs sit until liquidity or dissolution. Read the doc; know the trigger.