Use of Funds
Allocation of the €2M bridge (€750K convertible + €600K loans + a partial grant award; fuller grant awards are non-dilutive upside on top). Every euro is tied to a measurable outcome that contributes to the path from €401K to €1M ARR, the milestone that opens the Series A.
Headline allocation
Detailed allocation
1. Commercial and delivery expansion (45%, €675K-€900K)
The revenue-facing and delivery team that carries the company from €401K to €1M ARR: 1 Business Development, 2 Customer Success, and 1 Project Manager. Each role is tied to a specific commercial vector and a measurable ARR contribution.
Additional commercial spend: €100-150K for marketing, conferences (HIMSS, AAD, EADV), pharma BD travel, and CRO partner enablement.
Scientific Advisory Board expansion: €50-100K for honoraria, meetings and travel to onboard reference dermatologists (KOLs) in Brazil, the UK and the US, the markets we are actively advancing. Capital-light by design: advisors join on honoraria, not salary. They accelerate market access and underpin FDA clinical credibility.
The full bridge team is 7 hires. The 4 commercial and delivery roles above are funded by the bridge cash. The Clinical Affairs Manager and 2 Medical Data Scientists (3 roles) are funded by R&D grants (CDTI and others), not by the bridge cash, so clinical and R&D headcount grows non-dilutively while the bridge euros stay focused on revenue and the FDA process.
2. Regulatory / FDA (25%, €375K-€500K)
FDA 510(k) pathway completion through pre-submission and submission preparation. The European regulatory function is already strong (Saray Ugidos, RA/QA Manager, BSI Lead Auditor ISO 13485 in-house + external regulatory consultant), so the bridge spend focuses on US-specific gaps: FDA-side regulatory consulting + the clinical validation studies in the US + clinical evidence preparation that the FDA submission requires.
| Item | Estimate |
|---|---|
| FDA Q-Sub preparation and submission | €40K-€60K |
| US regulatory consultant retainer (12-18 months) | €120K-€180K |
| Clinical evidence supplementation (if FDA requests) | €80K-€120K |
| Quality system adaptation for FDA QSR (21 CFR 820) | €50K-€80K |
| FDA fees + legal | €30K-€40K |
| US clinical validation study execution | €55K-€80K |
| Total | €375K-€500K |
3. Runway buffer (20%, €300K-€400K)
Extends operational runway into 2027, providing buffer for the Series A launch. Critical for negotiation leverage.
Why a runway buffer matters strategically: founders launching Series A with less than 6 months of runway lose ~25-40% of valuation leverage in negotiation. The bridge buys time to launch the Series A from strength, not from cash desperation. This single line item routinely pays for itself in valuation uplift.
4. Operations (10%, €150K-€200K)
| Item | Estimate |
|---|---|
| Infrastructure scaling (AWS, cloud GPU for inference) | €40K-€60K |
| Software licensing (HubSpot, productivity, security) | €30K-€40K |
| Legal (bridge round closing, contracts, IP) | €30K-€50K |
| Insurance (D&O, cyber, professional liability) | €20K-€30K |
| Audit and tax | €15K-€25K |
| Total | €150K-€200K |
Bridge milestones tied to allocation
Each major allocation maps to a milestone that, in combination, triggers Series A readiness:
What this is NOT funding
Equally important is what the bridge does not fund. The bridge is surgical, not aspirational:
- ❌ No new C-suite hires, the existing leadership team executes the plan
- ❌ No new product categories, focus on doubling down on existing AI capabilities
- ❌ No additional geographic markets, focus on activating BUPA Europe + Spanish public health rather than opening new countries
- ❌ No major R&D pivots, the current product roadmap continues (R&D headcount growth is grant-funded, not bridge-funded)
- ❌ No marketing-led growth experiments, this is enterprise sales-led, not demand-gen-led
The discipline of saying "no" to additional asks is what makes a bridge round work. Bridges fund the gap between two known states, not exploration of new ones. The Series A is where strategic exploration is funded, the bridge is purely about execution of the existing plan at higher velocity.