Legal Insights

Articles, analyses, and thought leadership to help you navigate legal and business challenges.

October 7, 2025

What are convertible loans and how do they work in startup financing?

Convertible loans are a hybrid between traditional loans and equity financing, allowing founders to raise funds quickly while postponing valuation of a startup. This blog post breaks down how they work, why they’re used, and what risks they carry for both founders and investors.

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