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Convertible Instruments (CLAs, SAFEs)

Bridge the Gap: Legal Support for Convertible Financing Rounds 

Raising funds through a convertible financing instrument such as a CLA or a SAFE can offer flexibility and speed, but these agreements come with unique legal complexities. We ensure that the convertible financing round is structured with a view to future investments and a conversion into equity.

Our unique approach

Convertible instruments such as CLAs and SAFEs are fast, efficient tools for securing funding and, in particular, for bridging a startup's financial needs until a next equity financing round, but getting the legal details right is critical. We will make sure that the convertible financing round is structured in a way that attracts future investors, allows for a smooth conversion into equity and protects your interests.

Here’s how we can support:

  • Customized Legal Documents: We draft and negotiate convertible loan agreements (CLAs), SAFEs, and related agreements, tailored to the funding goals.

  • Key Term Negotiation: We help define key terms such as conversion triggers, valuation caps, discount rates, interest rates and maturity dates and can provide input on what is considered best practice and market standard.

  • Investor and Founder Protection: We balance investor preferences and protections with founder interests, ensuring fair treatment of all parties while avoiding dilution pitfalls. In this, we always take a pragmatic, solutions-oriented approach also with a view towards the next equity financing round.

  • Compliance: We ensure that the agreements comply with Swiss corporate and securities laws.

  • Due Diligence Readiness: We help prepare for, or conduct, investor legal due diligence to detect, address and resolve and legal issue proactively and build investor confidence.

  • Seamless Integration with Equity Financing: We ensure that your convertible loan or SAFE terms are structured to integrate smoothly with future equity financing rounds, avoiding complications during conversion.

 

With our expertise and support, you get your convertible financing round done right—fast, flexible, and future-proof. Together, we’ll pave the way for your startup’s next big leap forward.

What we deliver

  • Effective handling of negotiations

  • Due diligence preparation or review

  • Comprehensive term sheet preparation and review

  • Expert advice on key terms such as interest, valuation, discount rates, and other conversion terms

  • Guidance on conversion triggers and future integration with equity rounds

  • Support for regulatory compliance

  • Cap table analysis and equity preservation strategies

  • Clear, tailored and legally compliant agreements

  • Seamless alignment with future financing and equity strategies

  • Negotiation support to close deals quickly and fairly

The Team

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Founding Partner (Legal) & CEO

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Managing Associate (Legal)

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Senior Associate (Legal)

Want to learn how Alfred can unlock your business potential?

Book a complimentary intro call with us. We’d love to discuss your needs and how we can assist you.

In progress - new success stories coming soon.

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Success Stories

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Investor-Grade Legal Due Diligence for a MedTech Deal

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The Perfect Ingredients for a Successful Financing Round? Eat UMAMI, ask ALFRED!

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Turning Conflict Into Clarity: Resolving a Joint Venture Dispute with Smart Negotiation

Flexible Packages

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$

500

/ mo

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Standard CLA

CHF

2'500

+ VAT

  • Standard Convertible Loan Agreement (CLA) for startup financings, to be used by the startup for multiple investors

  • Up to 3h of calls to discuss the agreement, explain key provisions or answer investor questions

  • Documents: CLA, board resolution

  • Included: pitch deck review, if requested

  • Excluded: bespoke or material changes due to non-market standard terms, investor syndicates, side letters or individual one-of-a-kind circumstances

Management of CLA Round

Please get in touch — we’re happy to discuss your needs and agree on a suitable price.

  • End-to-end management of the convertible financing round, from preparation of the financing documents through negotiation, investor coordination and signing.

  • Documents: Convertible Loan Agreement, board resolution and standard supporting documentation required for the round

  • Included: pitch deck review, if requested

  • Project Management of the round with multiple investors

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The Alfred Advantage

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Made by Founders

Alfred is run by successful startup founders. That’s how we are uniquely equipped to see eye-to-eye with entrepreneurs. We know the problems and we find the solutions with you.

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Legal & Business

Our long experience in the startup world has shown us: A symbiosis of legal and business knowledge delivered from a single source brings startups more effective and pragmatic solutions.

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Always Actionable

We know you have no time to theorize. You need actionable solutions now. We do research, so you don’t have to and quickly point you toward impactful adjustments.

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Ready to take your vision to the next level?

Email us at info@alfred.ch or schedule a free introductory call to discuss how we can support you.
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