A KISS is a financial instrument between a company and an investor, where the investor provides capital in exchange for the right to purchase shares in a future equity financing round. It is a hybrid security, combining features of both debt and equity. While similar to a SAFE (Simple Agreement for Future Equity), a KISS offers additional investor protections typically found in convertible notes, such as interest accrual and a maturity date. Upon maturity, the investor may convert the investment, plus accrued interest, into preference shares. KISS securities also grant investors basic information rights and participation rights in future funding rounds.
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