Transitional Capital
Content
Definition
Transitional Capital is capital provided to companies to bridge a temporary financial gap, which can be crucial for startups during pivot points or until achieving the next milestone.
Usage and Context
Transitional capital covers a temporary financial gap, crucial during key startup times.
Frequently asked questions
- What is a bridge funding startup? Bridge funding gives short-term money to startups between funding rounds.
- Which are the two main sources of capital for a start-up? The two main sources of capital for a startup are equity financing (e.g., venture capital, angel investors) and debt financing (e.g., loans, credit lines).
- What type of funding is best for startups? The best funding for startups depends on their stage and needs, but options include bootstrapping, angel investment, venture capital, and crowdfunding.
Benefits
Transitional capital helps manage financial gaps during critical growth periods.
Conclusion
Transitional capital addresses financial gaps during critical growth phases, ensuring continuity.
