KISS

A KISS is a “Keep It Simple Security”. It is an agreement between a company and an investor: the investor invests money in the company and, in exchange, receives the right to purchase shares in a future equity round when it occurs. KISS securities are a hybrid between debt and equity: it aims to keep the simplicity and user-friendly-ness of equity, but with some of the investor protections found in convertible notes (debt).  A KISS is broadly similar to a SAFE but includes some downside protections which are standard in convertible note instruments. A KISS accrues interest and has a maturity date after which the investor may convert the underlying investment amount, plus accrued interest, into a new series of preference shares in the company. KISSes provide basic information rights on financial statements to investors and the right to participate in future equity funding rounds.