KISS Fundraising for Startups

KISS stands for Keep It Simple Security. It is a type of convertible bond instrument that was proposed by the accelerator 500 Startups, a year after Y Combinator published its SAFE (Simple Agreement for Future Equity) documents. These documents had the same goal: to help early-stage startups raise money quickly by postponing valuation negotiations until the next financing round.

KISS attempts to supplement the following items that are (intentionally) missing from the SAFE:
– Maturity Date: KISS will be automatically converted on the maturity date if there has been no capital round within the term
– Return in the form of the return an investor receives even if no capital round takes place and the startup is sold through an acquisition.

So KISS is a little more detailed than SAFE.

In any case, in the Indian context, you should use these terms with caution for fundraising purposes. Do so only after consulting a competent authority or lawyer who has experience in the matter.

Read more: https://startupjedi.vc/content/kiss-startup-financing-instrument-500-startups
Summary of KISS terms: https://500startups.app.box.com/s/bqhdzjvx8x8fsn8s4zlt

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