If the planned period until IPO is too long and capital is needed earlier, there is the option of bridge financing. This financing instrument makes it possible to cover capital requirements in the short term until the IPO has been completed. Bridge financing can take place in various forms: A bank provides the company with the required sum in the form of a loan, which is repaid after the IPO has taken place. Investors cover the open capital requirement and are paid via shares in the company instead of repayment. Thus, the bridge financing takes the form of a convertible loan. Raising venture debt, which partly contains an equity component in the form of warrants and guarantees the venture debt provider shares if certain success parameters are met. Another option for bridging the period until the IPO is a pre-IPO. This describes a situation in which a private company sells shares before the listing and can thus close financing gaps for further development.