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Training Guide

Convertible Debt Financings


Training Guide

Convertible Debt Financings

Venture Financing
Remote or in person

What’s Covered

  • Overview of a convertible debt financing
  • Why companies issue convertible debt
  • The main features of a convertible note
  • Conversion terms
  • Alternatives to convertible notes (SAFEs and Kisses)

Before the Session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

  • still frame from Main Features of Convertible Notes


    Convertible Debt Financings

    Convertible debt financings are a common alternative to priced equity rounds. This course explains convertible debt financings and their most common form, convertible notes. It also describes alternatives to notes, such as SAFEs and KISSes.

During the Session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

  • Why do companies issue convertible debt? 
  • What are some upsides to issuing convertible debt? 
  • What are some downsides to issuing convertible debt?
  • What are the main features of a convertible note?
  • What are some common conversion terms?
  • When does it make sense to use alternatives to convertible notes? 
  • What’s a SAFE? 
  • What’s a KISS?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the Session

To continue their learning, attendees can check out related courses in Hotshot’s Venture Financing topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.

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