Convertible Loan Agreement

Convertible Loans are loans that get converted into equity after some time. Early stage startups often use this form of financing when the valuation is still unclear. As such agreements are becoming more common in Austria, we wanted to give founders and investors a contract template that they can use as a reference. Therefore, we teamed up with the Austrian Angels Investors Association and the two law firms Herbst Kinsky and Höhne, in der Maur & Partner to create a template for a convertible loan agreement in accordance with the Austrian legal system.

While the provided contract template reflects current best practices, it leaves room for individual adjustments and should not replace necessary advice by lawyers and tax advisors. The template includes explanations on the context of the paragraphs and points out potential for individualisation (you can preview it by clicking on the picture on the right) – it can be downloaded here.

It’s our aim to continuously improve and adapt the template to the latest standards – that’s why we’re always looking for feedback! If you feel the template could be improved, please send your input to md@139.144.178.239.

Thanks to Jennifer Weidholzer from Deu2Eng for proofreading!