Convertible Loan
The Seed Convertible Loan Agreement outlines how a company can raise capital through a loan that later converts into equity. Core terms include the loan amount, interest rate, discount, and valuation cap. The loan converts into shares in connection with a qualified financing or upon maturity. The agreement also addresses pre-emptive rights, the mechanics of conversion, and additional optional Investors rights.
Neither HVCA nor the HVCA members, fund managers, law firms, or lawyers involved in the preparation of the documents accept any responsibility for the content of the documents or the consequences of their use, and none of the documents constitute legal advice regarding specific facts or circumstances.
General comments and questions regarding the documents should be sent to the HVCA Legal Committee at jogibizottsag@hvca.hu, as the Legal Committee will continue to update the documents in the future based on market participants’ feedback.