Bridge Financing
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.

Related Terms:
Bridge Loan
Investment Bank
IPO
Underwriting

• Decreasing Term Insurance
• Dedicated Portfolio
• Dedicated Short Bias
• Deductible
• Deduction
• Deed
• Deed In Lieu Of Foreclosure
• Deed Of Release
• Deep-Discount Bond
• Deep In The Money
• Deep Out Of The Money
• Deer Market
• Default
• Default Model
• Default Premium
• Default Probability
• Default Risk
• Defeasance
• Defeased Securities
• Defensive Acquisition
• Defensive Buy
• Defensive Company
• Defensive Investment Strategy
• Defensive Stock
• Deferment Period