6 Angels—your bridge financing solution
- Raising large amounts from angel investors—impossible or totally doable?
- If you are between rounds, are angels a good way to bridge to the next round?
- Can you think of it as a numbers game and apply to lots of angel groups at the same time?
At several points in my entrepreneurial journey, I found my company not being 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) from our initial seed-stage investors. To bridge the gap, I needed what is quite 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.