Due to their flexibility and reduced complexity compared to fully-fledged equity financings, convertible loans are an important part of a startup's financing tool box. In a nutshell: a convertible loan is generally not meant to be repaid, but to be converted into an equity participation in the startup at a later stage.

OLNS#2 is filled with practical tips for founders and investors alike and comprehensively presents all the essentials you need to know about convertible loans.