500 Startups has launched a new document series dubbed KISS (Keep It Simple Security). These documents aim to simplify the process of early-stage investing, making it more efficient and less costly. KISS offers two types of documents: equity and debt, both of which are convertible and have a valuation cap.
The equity version is similar to a SAFE (Simple Agreement for Future Equity) but includes investor-friendly provisions such as the Most Favoured Nation clause. The debt version, on the other hand, includes an interest rate, maturity date, and events of default.
The KISS documents are designed to be simple, investor-friendly, and founder-friendly. They are expected to save time and legal costs for both investors and founders.
The KISS documents are also open source, meaning anyone can use, modify, and distribute them. They are available for download on the 500 Startups website.
500 Startups hopes that the KISS documents will lead to a more efficient and transparent early-stage investment process. They are designed to be used globally, with the potential to standardise early-stage investment documentation.
It’s important to note that while the KISS documents are designed to simplify the process, they don’t eliminate the need for legal advice. Founders and investors are encouraged to seek legal counsel before using these documents.
Go to source article: http://500.co/kiss