Capital deposit account (Switzerland)

In a priced round in Switzerland, new investors' subscription funds are first wired to a blocked capital deposit account (Kapitaleinzahlungskonto), before an extraordinary general meeting at which a notary certifies the capital increase.

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Only after this notarial certification does the board of directors allot the new shares to investors and update the shareholder register. By contrast, for a convertible instrument such as Convertible bonds or a SAFE (Simple Agreement for Future Equity), funds are paid directly into the company's current account, with no deposit account and no immediate notarial step.

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This timing gap is more than a formality: a Swiss capital increase typically takes several weeks between term sheet signature and the funds actually becoming available to the company, the time needed to organise the meeting and the notarial certification, whereas a round in convertible instruments can close within days. For a cash-constrained startup, this choice of instrument directly shapes how fast it can access cash.

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In a financial structuring of a funding round, anticipating this notarial delay, and documenting it with investors from the Term sheet stage onward, avoids calendar friction between investors and the company at closing.