Post-Series A bridge convertibles
Convertible securities have long been a staple of early-stage fundraising, allowing companies to extend their runway, delay a priced round, or weather uncertain market conditions. After a period of growth and moderation in recent years, post-Series A bridge convertibles—SAFEs and convertible notes issued by Series A companies—continue to play a significant role.
Fluctuation in post-A convertibles
In Q3 2021, post-Series A bridge convertibles made up only 8% of all Aumni-tracked convertibles—a five-year low. That figure grew steadily throughout 2022, peaking in Q1 2023, Q2 2024, and reaching a five-year high of 19% in Q3 2025. Convertible bridge financing is an attractive option for Series A companies seeking alternatives to priced equity rounds or looking to avoid setting potentially unfavorable valuations in the current market. While the share of convertibles issued by Series A companies has fluctuated in recent quarters, it remains approximately eleven percentage points above the five-year low.
Broader market dynamics
Looking at the broader fundraising market, Series B saw a surge in both deal size and pre-money valuations in early 2021, followed by a decline in both figures through mid-2023. Since then, both have seen a moderate increase, nearing peak 2021 levels. The nature of these deals, however, is just one part of the full story. Series B deal frequency experienced a similar surge in early 2021, followed by a sharp decline through 2022. While deal sizes and valuations moved past the worst of the valuation reset that characterized 2022-2024, Series B deal frequency has remained flat and below Q1 2019 levels for a third straight year. This decline in deal frequency adds context to the fluctuation in post-Series A bridge convertibles in a seemingly recovered Series B fundraising market.
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Looking ahead
Bridge convertibles by Series A companies continue to play an elevated role in 2025. Their rise and retreat highlight how companies and investors adapt to the shifting balance between speed, flexibility, and valuation certainty. During times of higher deal frequency and larger round sizes in the past few years, post-Series A bridge convertibles have been less prevalent. Recent moderation in 2025 could reflect early signs of stabilization or even the setting of a precedent regarding the growing role of convertibles in the post-Series A company lifecycle.
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