Convertible Loan Set-up Service

Convertible loan - from strategy to customized contract

We deliver more than just a contract template: With dedicated legal expert advice from start to finish, you will get your strategic direction for funding right, determine the right key variables to implement your strategy, and exactly know what the impact of your convertible loan structure is on the company’s future.

Convertible Loan Flat Fee Package

The value

Best-in-class convertible loan base template, established and continuously reviewed by multiple legal experts, improved with every dataset we get from numerous startup cases.

Kick-off and legal expert session where our legal experts will ask you the right strategic questions, explain the key terms and impacts on your strategy in detail and make data-backed recommendations from their experience in the market.

Digital signature set-up and signature collection for fast closure.

The timing

We can deliver your dedicated Convertible Loan Agreement within 48 hours if needed.

The price

Flat fee CHF 2’000 (excl. VAT)

In scope

Initial kick-off call to define key parameters aligned to your company’s strategic direction

Drafting of your personalized convertible loan agreement

Legal expert session in which we explain the agreement in detail and answer all your open questions

Delivery of the final agreement with adjustments discussed in the expert session

E-signature set-up and collection of signatures

Out of scope

Negotiation with investors (can be quoted separately)

Tax ruling (can be quoted separately)

Additional feedback rounds (in the first call and the legal expert session, we clarify all your questions consolidated and explain the contract in detail. For further changes after we’ve sent over the final agreement, you can book additional hours)

Book a free call

Convertible loan process

Five comprehensive steps to complete your convertible loan funding

1

Kick-off call

In a first call, we explain the agreement structure and general key variables before deep diving into your business model, strategic direction, and the company’s future ambitions to define the right contract parameters for your convertible loan agreement.
2

Contract drafting

We draft your personalized convertible loan agreement with the key variables derived from our first call. This draft contract and the open questions you’ll collect from your team in the meantime will be the discussion base for the expert session.
3

Legal expert session

In an expert session with all your involved stakeholders and our legal experts, we review the document, answer all your open questions and discuss potential changes. In addition, we run different scenarios in our loan calculator.
4

Final document

We implement the changes we agreed on in our expert session in your convertible loan document and, if applicable, clarify the remaining questions from the session before we send the finalized agreement over to you.
5

Signature collection

As the last step, we set up the digital signature collection process. With this, we then collect the required signatures in a compliant, fast, and efficient manner so that you can close your convertible round in no time.

Book a free call

Convertible Loan FAQ

What is a convertible loan?

A convertible loan (debt financing) will convert into equity in the future in case of certain trigger events. With a convertible loan, an investor lends a certain amount of money to your startup with the right to convert the loan into shares, usually for a discount at the next financing round.
What are the reasons to use a convertible loan?
The top reasons to opt for a convertible loan are:
- You want to postpone the valuation discussion as you believe you can get a much better valuation later.
- Your startup does not have the time to find investors and negotiate a full financing round.
- You only wish to raise a small amount right now.
What are the main benefits of a convertible loan for a high-growth startup?

The main advantage is that there are typically no extensive negotiations, and the question about the company’s valuation (which can be difficult) is deferred to the future.

With a convertible loan, the money can be on the startup’s bank account within a couple of days (from sending out the agreement), compared to a couple of weeks with a financing round. Furthermore, due to the conversion element, the loan is typically not due for repayment but converts into equity at a later stage. For investors, it is a great opportunity to participate in the company’s growth as they get their loan paid back in shares of the company, which may be worth much more than the initial loan amount.
Is a convertible loan the same as a SAFE?

Under Swiss law, a SAFE is the same as a mandatory convertible loan. Our convertible loan agreements are typically a lot easier to understand and shorter than the y-combinator SAFE.

Like the convertible loan itself, the cooperation with LEXR was very straightforward. Above all, the digital mindset during our time working together which ensured that we could quickly and easily get in touch with the LEXR team, suits us. In addition, you can sense that LEXR has a huge amount of know-how regarding start-ups.

Patrik Elsa, Founder & CEO of beUnity

Customer story

Other startup financing services

About us

We’re a growing team of 25+ legal professionals. Some of our experts include:

1

Michele is focused on corporate and commercial law and has a strong background in M&A transactions. At LEXR he advises Swiss and international founders, start-ups, and investors – from incorporation to the first investment rounds, risk financing, complex business transactions, and exits.

Michele Vitali, Head of Startup Financing &Venture Capital, Legal Expert
2

Marius’ specialty is corporate and commercial law. He works with a variety of VC transactions (particularly convertible loans and equity financing), secondaries, corporate law, employee participation, and corporate governance.

Marius Bättig, Senior Legal Counsel
3

Vincent advises on corporate law and has VC and start-up experience. He advises tech and digital companies from their incorporation over financing rounds up to their exit.

Vincent Plautz, Legal Expert
4

Klara is part of our corporate team and supports our customers with transactions throughout their company lifecycle – from incorporations to employee stock options plans and the legal aspects for different means of raising funds.

Klara Weismann, Junior Legal Counsel
5

Elie is the Head of Mergers and Acquisitions at LEXR. He is focused on advising Swiss and international founders, start-ups, companies of diverse sizes, and investors in all types of M&A transactions, including namely sales, purchases, mergers, demergers, carve-outs, management buy-outs, joint ventures, and many others.

Elie Bourdilloud, Head of M&A and Legal Expert