Bridge Round Financing ModelFree Financial Model Download

A bridge financing model evaluates convertible notes and SAFE instruments by projecting conversion scenarios at different Series A post-money valuations, calculating resulting ownership percentages for founders, bridge investors, and new series investors, and showing dilution impact on each holder. The model answers how much the bridge round is worth to the convertible investors (in terms of discount and valuation cap), what the pro-forma cap table looks like at multiple Series A price points, and how founder ownership evolves through conversion.

Convertible instrument terms (discount, valuation cap, interest rate) define the conversion mechanics: at Series A, the note converts at either the post-money valuation times the discount (e.g. 80% of price per share) or the valuation cap divided by the fully-diluted share count, whichever is more favourable to the investor. Each conversion scenario is modelled by varying the Series A post-money valuation (e.g. $10M, $15M, $20M, $25M), calculating the resulting price per share, then determining how many shares the convertible investor receives. The cap table projection shows pre-financing fully-diluted shares (including employee option pool), each instrument's conversion result, new Series A investment, and pro-forma ownership percentages.

Startup founders, venture investors, and company counsel use bridge models to negotiate terms, understand dilution sensitivity, compare the value of different bridge terms (higher discount vs. lower valuation cap), and ensure the bridge structure doesn't create unexpected outcomes if Series A pricing comes in hotter or colder than expected.