Raise funds quickly without setting a valuation, using a Convertible Loan Note instrument (CLN) and either issues shares or repay the loan at a later date.

Get started today with our template agreement, drafted by our legal team.

200+

businesses have raised

£56M+

using convertible campaigns on Seedrs

How does a Convertible Loan Note differ from an ASA?

A convertible loan note is a hybrid debt and equity instrument that can be converted into equity. The conversion is typically alongside a future funding round where the investment plus any accumulated interest is converted into equity. 

As a hybrid debt/equity instrument, the CLN investments may also be repayable in cash, rather than an issue of shares. 

A convertible loan note instrument (‘CLN’), in its simplest form, is an interest accruing loan that can be converted into company shares. For that reason, it’s seen as a hybrid debt and equity investment.

If the loan is converted into shares, the shares are typically issued at a discount to the valuation at the time of their conversion (usually a new funding round), to compensate investors for taking on more risk earlier. 

Easy Setup

Launch a campaign quickly and easily, with no additional input required from our lawyers or yours

Raise funds now, set a valuation later

Raise the funds you need fast, without needing to set a valuation

Free legal resource

The Seedrs CLN helps to save time and money with an official resource certified by lawyers

Flexibility 

CLNs offer flexibility for both you and your investors

Our CLN overview, drafted by our expert legal team includes:

• A summary of all you need to know about CLNs,
• Clarity on the key terms relevant to CLNs when raising money for your startup,
• A carefully drafted pro-forma CLN term sheet, ready for you to plug in your round details and get started right away

Download the Seedrs CLN

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Note that not all shares will be eligible for the secondary market and, even if they are, the ability to buy and sell shares will depend on demand. It can be difficult to find a buyer or seller, and investors should not assume that an early exit will be available just because a secondary market exists. This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. 

Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

*The performance figures set out on this webpage refer to the past, and past performance is not a reliable indicator of future results. As such, this is not an indication of the performance of any other investment opportunity on Seedrs. Returns were calculated using unaudited accounts and are inclusive of fees.

Seedrs Limited is authorised and regulated by the Financial Conduct Authority (No. 550317). © Seedrs Limited 2019. All rights reserved. Seedrs is a registered European Community trademark (No. 008771537) and registered United States service mark (No. 85423072) of Seedrs Limited, a limited company registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW, United Kingdom, VAT No. GB 208 3065 32.