Investing carries serious risks, including partial or total loss of capital. Please read the Terms of Investment and the Risk factors and login before investing.

Hoplr

Convertible loan Belgium 83 crowd investors so far
Het sociale netwerk voor je buurt. Gebruikt door meer dan 75.000 huishoudens
Download Terms of Investment
Convertible loan
Investment type
2 years
Loan duration
€62,000
Already invested by crowd
€50,000
Crowd target
46 days
Remaining
20.00%
Discount at conversion
90
Already 124% crowdfunded

DISCLAIMER

Every investment decision must be based on an examination of an exhaustive set of information provided by the entrepreneur on his online profile. MyMicroInvest only proceeds to a limited verification of these informations and does not control the investment opportunity within this company. MyMicroInvest did not verify the extent to which the business plan is deemed realistic and does not intervene with the final terms of investment, including the retained maximum valuation. MyMicroInvest will align itself with the financial terms negotiated with the co-investor(s).

A convertible loan is a common way to finance business start-ups that cannot or do not wish to establish a valuation (in order to avoid restricting future funding) or simply in order to have the possibility of repaying the loan and so avoid dilution of shareholdings.

Normally, the loan (the principal and any outstanding interest) is capitalised in the company’s next capital round, with a discount (often 20%) on the valuation of a subsequent round, or is repaid at that time. It may be repaid but converted into an annuity that is repaid over a period of time.

If no capital round is concluded during the fixed term, the loan may be capitalised at a fixed low valuation or repaid at that time. It may be repaid but converted into an annuity that is repaid over a period of time.

The emphasis should be placed on the fact that a convertible loan made to a business start-up is similar in terms of risk to an investment in capital, since the loan is intended to be converted (in the case of successful fund-raising) or repaid by a young company, which usually will not have sufficient capacity to repay its debts, particularly if successful fund-raising does not take place.

Browse other campaigns