Bridge Financing

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	Definition of 'Bridge Financing' A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations.
	Investopedia explains 'Bridge Financing' These funds are usually supplied by the investment bank underwriting the new issue. As payment, the company acquiring the bridge financing will give a number of shares at a discount of the issue price to the underwriters that equally offsets the loan. This financing is, in essence, a forwarded payment for the future sales of the new issue.

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Bridge Loan

A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations ...
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Initial Public Offering - IPO

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