Glossary Term
Bridge Loan
Definition
A Bridge Loan is a short-term financing solution used to cover immediate cash flow needs until a longer-term funding source becomes available. In the MedTech industry, bridge loans are commonly used by startups or companies to fund operations, complete development milestones, or prepare for regulatory submissions while awaiting larger investments or revenue streams.
Relevance to the MedTech Industry
Bridge loans provide critical interim funding for MedTech companies to maintain momentum in product development, clinical trials, or market expansion. These loans enable companies to address urgent financial gaps without disrupting key business activities.
Additional Information & Related Terms
Venture Debt A similar financing option often used by startups alongside equity funding.
Convertible Note Another short-term funding instrument that may convert into equity during future investment rounds.
Seed Funding Early-stage financing that bridge loans often precede or complement.
Cash Flow Management Ensures that bridge loans are used effectively to address immediate financial needs.