What is the function of bridge stage in VC financing?

Business & Management
#1

Given that its goods and services have gained sufficient traction, the firm may decide to go public at this point. The money you get here can be utilized for things like:

  1. To drive away rivals, price reductions and other tactics are used.
  2. Mergers and acquisitions.
  3. Investing in the procedures leading up to an initial public offering (IPO).
    If all goes well, investors can sell their shares and finish their relationship with the firm with a fair profit. Many digital IPOs, such as those of Facebook, Twitter, and Yelp, were only achievable thanks to years of VC financing that spurred user and revenue growth. There’s an old adage that there’s no such thing as a free lunch, and VC backing of free applications and services is a perfect example of this.