Council Post: Why Extension Rounds Are Venture Capital's New Normal

Extension rounds—often called bridge rounds—are becoming a defining feature of venture capital as the time between financing events stretches. The median gap between a startup’s primary funding rounds has grown to about two years, compared with the industry’s long-standing 18-month cadence. Navigate Ventures founder Ivan Nikkhoo says extension capital now funds specific milestones without forcing premature full rounds, using instruments such as additional SAFEs, seed extensions, priced A+ rounds, or late-stage financings paired with secondary liquidity. Carta data shows bridge rounds were 16.6% of venture cash in Q2 2025, and climbed further at later stages while seed funding fell.