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SAFE is converted only when the Equity round is closed. that in any case KISS is converted either automatically (on the Equity round) or by Maturity Date, unlike SAFE. KISS closes the disadvantages of SAFE: for example, KISS includes Maturity Date, i.e. Minimum Equity round: > $1M and automatic conversion Transfer rights: rights to sell/ transfer the KISS contract whenever and to anyone Major Investor Rights (follow-up): from $50К + 1Х to the initial amount of investments

Interest Rate: 4% per annum (recommended) Perhaps its time to keep information security simple. M&A exit: 2X of initial investment amount + Interest Rate (depending on the version)ĭiscount и Valuation Cap: to be discussed The KISS-A (Keep it simple security) and the SAFE (simple agreement for future equity) are simplified convertible note templates that you can use to raise. So, the key points in KISS to be negotiated upon include: Interestingly, KISS can be transferred to any individual or legal entity, unlike SAFE. The privilege of the title is that at the next round of financing, those investors who entered the projected under KISS terms, are the first to be suggested to invest again, the sum of investments is 1X equal to the initial investment. This title can be obtained by an investor who invests at least $50K. Keepit is the best way to protect cloud data across your SaaS services. The multiplier is usually 2 (this is what 500 Startups recommends: ).Ĭlick on the image to learn more about investclub.vcīesides, there is a Major Investor term in KISS. In case when the startup is sold, the return on investments occurs either by Valuation Cap or by a Multiplier to the initial investment. The conversion takes place as usual - at the lowest price per share, which is calculated either by Valuation Cap or by Discount. KISS is automatically converted when the company is valued no less than $1M on the Equity round. 500 Startups suggests using an Interest Rate of 4% and a Maturity Date of 18 months.Īlso, KISS contains MFN (Most Favoured Nation): if an investor enters the project at the very early stage, and later on, the startup's valuation gets lower or a startup offers more favorable conditions for future investors, then the early investor can change his terms of participation in the project into more favorable ones. It's supposed to be an alternative to SAFE, consequently, it doesn't include an Interest Rate.ĭebt Version and Equity Version are the same except for the Interest Rate. It's a kind of an alternative to a Convertible Note and includes an Interest Rate.Įquity Version (without Interest rate or Maturity).