A convertible loan is often used as a “bridge” to the next round of financing.Getty Images/ Johannes Mann
A technical contribution by Nikolas Samios, founder of the Cooperativa Venture Group
Convertible loans as a form of financing for startups are in vogue. Four to five years ago, this new instrument – originating from the US scene – was still a marginal phenomenon, but it has also developed into a common tool for every venture capitalist in Germany.
In the following we would like to clarify the following questions in particular: What is a convertible loan anyway? In which cases is an application useful? And: Which common economic design variants are available?
