There are several strategies companies can employ. One common approach is to raise an extension or bridge round. Many startups are adopting this method, with estimates indicating that approximately 40% of current funding rounds fall into this category.

In these cases, companies raise funds at the same valuation as their previous round, often labeled as Series A+ or Series C+ or Series B Extension.

Another, less common strategy involves using a SAFE (Simple Agreement for Future Equity), which will convert to equity during the next priced round.