KISS 500 Startups Legal Docs

Use the KISS 500 Startups ("Keep It Simple Security") Convertible Debt or Equity Financing documents to close your next round with a LawTrades attorney

Overview

The KISS 500 Startups (Keep It Simple Security) docs are short and sweet funding documents released by 500 Startups after feedback from many early-stage investors. They are designed to be flexible, simple, and balanced from both the standpoint of the company and investor. There are two types of KISS agreements: a debt version and an equity version.

The debt version accrues interest (5%), has a maturity date of 18 months, and automatically converts to preferred stock if the company raises $1 million in the next qualified round. KISS equity securities similarly have an 18-month maturity date and an automatic conversion into equity at the next round of financing if $1 million is raised. KISS equity securities do not have an interest rate though, which makes them attractive to founders. Although a KISS is meant to be clear and easy to understand, it’s still in a company or investor’s best interest to have an attorney check things over before completing the deal.

How legal advice can help

Hiring a good lawyer will provide vital assistance in almost every aspect of your fundraising process. 
Confirm best form of funding
There are other attractive options for companies - like SAFE documents and convertible notes- and a lawyer can assess if those sources suit your business better.
Assurance you’re doing it right
Although a KISS 500 Startups is meant to be simplistic, there are still mistakes to make. Also, it’s nice hearing from an attorney that the proposed terms of the agreement are fair and enforceable.
You have an attorney to turn to
There’s a good chance you’re going to like your attorney from LawTrades and want to keep using him / her. By setting up that relationship for a KISS, you have a legal expert to turn to when in need.
Prevent future issues
Receive proactive legal risk management that will help you avoid problems before they arise by tapping into senior attorneys with considerable business experience.

What’s included

Consultation with an experienced venture financing attorney
Custom KISS 500 Startups documents

Average Costs

The cost can vary based on a number of different things.
To get an exact price for your business click here.

$500 - $3000

*figure show is an average. costs may vary.

Common Questions

Do I need an attorney to set up a KISS?
Not necessarily but each round of funding is so important that it’s in your best interest to have an attorney, at the very least, review the KISS. The terms of any deal should be based on your specific circumstances so speaking with an attorney to assess the right deal is advisable. Also, you should consult with an attorney before relying on any legal documents, especially if you’re unable to understand any of the terms.
What’s the difference between convertible notes and KISS documents?
The debt version of a KISS is essentially a convertible note without all of the formalities and hassles. KISS also has documentation for doing a traditional equity deal rather than a convertible note.
Should I go with a KISS or a SAFE document?
It depends on your situation. They’re both really helpful for businesses and investors looking for a simple agreement with clear terms. Generally, SAFE agreements are thought of as most founder friendly as they lack even the most basic forms of protection associated with convertible notes, namely an interest rate or a maturity date. On the other hand, terms within KISS agreements favor investors with a 5% interest rate, 18 month maturity date, information rights, and an automatic conversion of preferred stock if the company reaches $1 million in funding at the next round.
What is a “Most Favored Nation” clause?
It’s a provision within a KISS that states if the company ends up issuing better securities in the future, KISS investors can convert to those terms instead.
What are some other features of a KISS?
Under a KISS, if the company is sold prior to conversion to equity, the investor can opt to receive 2x the original investment or convert at the valuation cap. Also, a KISS provides investors who invest more than $50,000 with additional rights such as information rights and participation rights. Another feature of a KISS is that the investor can transfer its KISS to anyone at anytime. 

HOW OUR PROCESS WORKS

Describe need.
We’ll have a brief but detailed discussion to understand your needs and provide you with an upfront price quote.
Meet attorney.
To match you with the best KISS 500 Startups lawyer, we tailor our search to the specific skills you’re looking for. It's simple and easy.
Review & accept.
We hold your funds and only release it to the attorney when you’re 100% satisfied with the work product.

LawTrades KISS 500 Startups Attorneys

Discover our invite-only network of senior attorneys. Great companies
depend on our expertise for critical legal work. 
Jonathan Hood
New York, NY
⭐️⭐️⭐️⭐️⭐️ 
(39 Reviews)


"From my initial contact with Jon and with each successive correspondence we've had, Jon has been detailed, patient, and easy to talk to. Most importantly, he understood the startup space and knew right away what needed to be taken care of."





-Billy S.
Phillip Heller
San Francisco, CA
⭐️⭐️⭐️⭐️⭐️ 
(19 Reviews)


"Philip designed a thorough Terms of Service and Privacy Policy for my website that was directly tailored to my business. The project was completed on time and to my expectations. I will definitely use this service again." 


  



-Virginia A.
Jared Stark
Boca Raton, FL
⭐️⭐️⭐️⭐️⭐️
(23 Reviews)


"Jared was very knowledgeable and an overall pleasure to work with. He provided very quick turnaround and made sure all of our legal needs were satisfied. I would highly recommend his services to anyone else in the internet industry."




-David N.
Adam Bloom
Los Angeles, CA
⭐️⭐️⭐️⭐️⭐️
(12 Reviews)


"Adam is excellent at what he does, has fair pricing, and is as excited to work with our company as we are to build it. LawTrades also has excellent customer support, and I've enjoyed using the interface as well to track invoices."






-Abhi H.

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