• September 2019
    M T W T F S S
    « Aug    
     1
    2345678
    9101112131415
    16171819202122
    23242526272829
    30  

KISS Documents

Grow your startup.

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

– Confirm best form of funding

– Assurance you’re doing it right

– You have a KISS lawyer to turn to


How you can use KISS documents

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 a KISS lawyer for business startups check things over before completing the deal.

The benefits
Confirm best form of funding

There are other attractive options for companies – like SAFE documents and convertible notes – and a KISS lawyer for business startups 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 a KISS lawyer to turn to

There’s a good chance you’re going to like your KISS lawyer from LawTrades and want to keep using them. By setting up that relationship for a KISS, you have a legal expert to turn to when in need.

 


FAQ


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 a 500 startups kiss documents lawyer, at the very least, review the KISS. The terms of any deal should be based on your specific circumstances so speaking with a KISS lawyer for business startups to assess the right deal is advisable. Also, you should consult with a KISS lawyer 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.


Reviews 

 


Daniel, H. | ★★★★★

“Simple and trustworthy system. The project manager through text message is a good idea and helps a lot with the process, especially their timely response.”


Rafael, R. | ★★★★★

“I was very comfortable with the environment it was my first meeting and I knew it was on the right track I did understand my lawyer I was listening I did absorb the information given to me.”


Ori, A. | ★★★★★

“Great experience all around, LawTrades was just so much more personal and much better than other startup/online on-demand solutions for legal work,. Almost feels like I handpicked and hired the attorney myself. The Attorney was available to answer questions by phone or text message, so was the LawTrades rep who set the whole thing up. And when setting up new entities you always have questions, so this was a big deal for me. The Attorney assigned to my project was available on demand to help out explain things every step of the way and I think the guys at LawTrades have done a great job with making you feel extremely comfortable. After all was done I even got an email and a call from one of the co founders of the company to make sure I had a seamless experience. I never got a call from other companies I had used in the past like Legal zoom and the whole thing always felt so automated. Yes, granted Legal zoom probably have way more clients than Lawtrades and as such would not be feasible for their management to call everyone, however, that was a nice touch which I do appreciate. I will definitely be heading back to Lawtrades whenever I require legal assistance.”


Tamas, P. | ★★★★★

“Price. I know what I am paying instead of getting surprised. Transparent pricing I know what each bit costs instead of getting a big bill and not knowing what parts cost what and how much was for service vs hard fees such as filing fees. Also things progressed rapidly.”


Yash, P. | ★★★★★

“Amazing service, i cant get over texting to get a lawyer. it’s revolutionary and can legitimately improve the US justice system for people with no access to quality lawyers.”


Janet, S. | ★★★★★

“Quick and easy, I used LawTrades and worked with attorney Jonathan Hood to review a NDA. I got my questions answered right away. Arman was a great help making the connection. Would highly recommend the service.”