About the KISS (Keep It Simple Security)
The KISS (Keep It Simple Security) was developed by 500 Startups as a standardised early-stage investment instrument designed to simplify startup fundraising while retaining more investor protections than a SAFE.
KISS agreements were introduced as an alternative to convertible notes and SAFEs, combining elements of both structures. They were designed to reduce legal complexity while addressing some of the limitations investors identified in earlier instruments.
There are two primary forms of KISS:
• Equity KISS, which converts into equity without accruing interest or having a maturity date
• Debt KISS, which includes interest and a maturity date, similar to a traditional convertible note
Both structures allow startups to raise capital prior to a priced equity round, with conversion typically occurring at the next qualifying financing event.
KISS agreements usually include standardised terms such as a valuation cap, discount rate, and investor protections, including information rights and, in some cases, participation rights.
Compared to SAFEs, KISS instruments introduce additional structure and protections for investors. These may include:
• Interest accrual (in debt variants)
• Maturity timelines
• More defined investor rights
• Clearer enforcement mechanisms
Compared to traditional convertible notes, KISS agreements are shorter, more standardised, and require less negotiation.
The intention behind KISS was to strike a balance between simplicity for founders and protection for investors, making them suitable for a broader range of early-stage financing scenarios.
KISS agreements are commonly used in seed-stage financings where both parties require greater clarity and protection than a SAFE provides, but without the full complexity of a priced round.
As with all early-stage financing instruments, KISS agreements should be reviewed by qualified legal counsel prior to use. Their suitability depends on the company’s jurisdiction, capital structure, and fundraising strategy.
KISS Summary Guide
Important Disclaimer
The KISS documents provided in this section are based on the source forms uploaded to this library and are made available for general informational purposes only.
MoonshotNX is not a law firm and does not provide legal advice, legal opinions, or legal representation.
These materials are not tailored to any specific company, transaction, or jurisdiction. Use of these documents does not create a lawyer-client relationship, advisory relationship, or fiduciary relationship of any kind.
Any company or investor considering the use of a KISS should obtain advice from a qualified lawyer licensed in the relevant jurisdiction before preparing, negotiating, signing, or relying on these documents.
MoonshotNX disclaims liability arising from the use of these materials to the fullest extent permitted by law.
What a KISS Is
A KISS is a convertible investment instrument used in early-stage fundraising. The forms in this library are the Series 1 KISS Convertible Equity Agreement and the Series 1 KISS Convertible Debt Agreement you uploaded from Cooley GO. The equity version is issued for a purchase price and converts into equity under defined triggers. The debt version is a note-like instrument under which the company promises to repay principal plus interest unless conversion happens first.