Bridge Financing: the Georgian Legal Form
Bridge financing is a short-term loan between rounds: the company raises funds until the next investment closes. In Georgian law the four load-bearing norms of this instrument sit in the Civil Code: the concept of the loan contract, the agreed interest, the right to demand immediate repayment and the conditional transaction. United States-style bridge instruments that await conversion into shares must be restated as loans under Georgian law — this page sets out the rules of that restatement.
Note the ceiling as well: the annual effective interest rate agreed for a loan must not exceed 50 percent — this requirement applies to every type of loan, bridge loans included.