Funding instruments & exemptions · Specialist

KISS

Also called: Keep It Simple Security

ELI5

A contract that may convert into startup shares later.

Used in conversation

“Counsel is comparing the KISS with the existing SAFEs.”

Definition

A startup financing instrument called Keep It Simple Security, with equity-like or debt-like variants depending on the form.

Here “KISS” means: A startup financing instrument called Keep It Simple Security, with equity-like or debt-like variants depending on the form.

Pitch context

You will see “KISS” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.