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WMWP Rechtsanwälte GmbH
December 3, 2018

Convertible loans as financial instrument

aws Gründerfonds and WMWP Rechtsanwälte publish a practical guide for convertible loans: “In the last years, the convertible loan has become a well-established additional financing option for young businesses in Austria and it enjoys increasing popularity due to numerous reasons,” says Dr. Paul Koppenwallner, LL.M., partner of act legal Austria, WMWP Rechtsanwälte.

The guideline summarizes the essential key facts of the convertible loan as financial instrument and analyzes the following questions:

  • What are the characterics of the convertible loan?
  • Why should you use convertible loans as financial instrument?
  • Risks of the use of convertible loans
  • How does a convertible loan contract usually look like?
  • Are there formal requirements for a conclusion of such a contract?
  • What kind of challenges are investors and founders facing when planning and realizing convertible loan financing?

The authors Dr. Paul Koppenwallner, LL.M. and Bernhard Ungerböck, M.Sc., Investment Manager at aws Gründerfonds, pay particular attention to the legal, strategic and economic aspects of convertible loans. The guide is currently only available in German.