How Law Office Vanevski Made North Macedonia's First convertible loan possible

At Law Office Vanevski, we are more than just legal experts—we’re partners in your success. When game studio and investor came to us with the challenge of securing financing for their game development project, we knew we were about to create something historic. We are proud to be the first law office in North Macedonia to make the country’s first-ever convertible loan a reality, marking a significant milestone for the startup ecosystem.

Convertible loans are rapidly becoming a sought-after financing tool for startups around the world. They allow businesses to raise capital without immediately giving up equity, instead offering the option to convert the debt into shares later on. This provides the flexibility startups need to grow, while also giving investors an opportunity to become part of a promising venture.

This innovative financing model was new to North Macedonia, and Law Office Vanevski played a crucial role in making it happen.

Convertible loans have become a powerful tool for startups that need funding but aren’t ready to give up equity right away. This model allows entrepreneurs to retain control of their business in the early stages while still securing the investment they need to grow. At the same time, it provides investors with the potential for equity once the startup is ready for expansion.

For the game studio, a fast-growing game development company, this financing model was a perfect fit. By securing a convertible loan through investor, a prominent local accelerator, Sindex was able to receive the funds necessary to continue developing their project, SciGirl: The Internship. And thanks to Law Office Vanevski, the deal was completed smoothly, ensuring that both the startup and investor were well-positioned for future success.

Being the first law office to facilitate a convertible loan in North Macedonia came with its own set of challenges, but we were ready. Our team of experts worked closely with both Sindex and BAU to ensure the entire process was executed flawlessly. Here’s how we did it:

• Crafting the Legal Framework: We developed a customized convertible loan agreement that clearly defined the terms, conversion conditions, and expected outcomes. This legally sound agreement ensured clarity for both Sindex and BAU.

• Ensuring Compliance with Macedonian Law: The introduction of convertible loans was a new concept under North Macedonian company law. We ensured that the agreement met all the legal requirements and provided a structure that was beneficial to both parties, creating a sustainable path forward.

• Negotiating Key Terms: We helped both the game studio and the investor navigate negotiations to find common ground, ensuring that Sindex could retain ownership and control of their company while securing the funding they needed and that the investor had a promising investment opportunity.

• Providing Ongoing Support: After the deal was finalized, our team continued to offer ongoing legal support to ensure everything remained on track, guiding both the game studio and the investor through the next steps of implementing the loan agreement.

This successful convertible loan deal is not only a win for  the game studio and investor, but it also marks a turning point for startups in North Macedonia. It demonstrates that innovative financial solutions are possible, even in a market where they’ve never been used before.

For startups in North Macedonia, this represents a major step forward in accessing the funding they need to grow, without the immediate need to give up equity. For investors, it provides a chance to support exciting new ventures while also positioning themselves for future growth through equity conversion.

At Law Office Vanevski, we are proud to have played a central role in making North Macedonia’s first convertible loan a reality. By providing the necessary legal expertise, we helped bring a new financing option to the country, benefiting not just Sindex Studios and BAU but the entire startup ecosystem.

We’re excited to continue helping local businesses achieve their goals with innovative solutions like convertible loans. If you’re a startup looking for funding or an investor interested in convertible loan opportunities, Law Office Vanevski is here to guide you through every step of the process. Let’s create the future of business together.