Bridge Financing

Bridge Financing: "Bridge Financing What does it Mean? A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Investopedia Says... 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."