The KISS Note

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

KISS in the startup world stands for Keep It Simple Security.

It’s similar to a convertible note.

Here are the differences between a KISS and a convertible note:

The KISS gives the holder the right to participate in future funding rounds.

Convertible notes only convert the current debt into equity.

The KISS gives the holder a “most favored nation” clause, which means the holder gets the best terms of any investor in the round.

The KISS gives the holder additional liquidation preference rights.

Convertible notes give no liquidation preferences.

The KISS note is more investor-friendly than a convertible note.

In addition, the KISS note provides representation and warranties, which means the founder has disclosed all relevant information and is liable if not.

The KISS can be transferred to others without permission from the founder.

The KISS, like convertible notes and SAFE notes, is easy to use and simple to apply.

Consider a KISS note for your fundraiser.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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