Implementation of investment – Technique

A convertible bond loan is more flexible than a share arrangement and it is easier to exit. A convertible bond refers to a loan to which an option right has been attached. On the basis of the option right, the loan capital and the unpaid interest can be converted into a share investment if the

A capital loan is a special type of loan. - - capital and interest may be paid in liquidation and bankruptcy of the company only with a preference which is lower-ranking than other debts; the principal may be otherwise repaid and interest paid only in so far as the sum total of the unrestricted

An option constitutes the right to subscribe new shares of the company, provided that the terms of the option right are fulfilled. Options are not usually an actual investment instrument, but they may be used as a part of the investment, especially if a business angel invests sweat equity or networks. Options can in

Shares can be transferred to an investor in three ways: when a company is formed, in a directed share issue or when purchasing them from founder shareholders. The most typical method is a directed share issue in which the company offers new shares to investors and the invested amount is recognised in the company's

The capital of a limited company is divided into two main groups: equity and liabilities. A monetary investment made by a business angel is usually equity-based or a combination of the characteristics of equity and liabilities, so-called mezzanine financing. In sweat equity-type investments, an investment can be executed either in advance, as in monetary