6 Angels: Your bridge financing solution
This chapter covers
At several points in my entrepreneurial journey, I found my company not ready to raise money from professional institutional investors—the VCs who come in after seed-stage financings—and seeing the end of our cash looming kept me awake at night. Typically, this was because we had not proven product–market fit (see anecdote 15, “Product–market fit: making sure the dogs will eat your dog food”) and were still too far from landing customers. This was the situation when I had raised about as much as I could ($8 million in two installments) from our initial seed-stage investors. To bridge the gap, I needed what is aptly named bridge financing. As the name implies, this is funding that bridges the company from one kind of financing to the next. In this case, it was between Series Seed and Series A.