Two Types of KISS
Here are the two types of KISS convertible notes available.
- Debt version: The debt KISS convertible note version comes with the interest rate as well as the maturity date. This is classed the same as a convertible note because it closely tracks the structure of the convertible debt. It also contains the interest rate along with the maturity date clause.
- Equity version: This comes without interest or maturity date. The 500Startups equity version can be looked at as being somewhere between a convertible note and a SAFE convertible note. It does not accrue interest and at the maturity date, it does not contain a repayment clause.
These combined factors generally make it the most attractive convertible security option for most startups.
It is clear that the use of KISS convertible notes is advantageous to both founders and investors alike. Founders will also find that it is becoming normal for investors to insist on getting KISS convertible notes as opposed to SAFE notes.
This means that founders need to be fully versed in exactly what the KISS solution is and how this highly effective financial instrument can be used to the best effect. Such knowledge will be required during KISS discussions, negotiations, and transactions with investors.
Founders also need to understand exactly how these convertible notes will impact their cap table. Not only do they need to keep track of all cap table KISS additions but also have the knowledge and ability to produce cap table projections in order to understand the impact of different scenarios before committing to any KISS convertible note deal.
With that in mind, founders should seek expert advice, assistance, and guidance and that is exactly what the highly experienced team at WOWS Global can offer.
We are committed to advising founders on how to get your startup off on the right footing and then helping you grow in a positive, structured manner. This includes connecting potential investors with startup ventures.
Another real benefit for founders relates to effective KISS convertible note management. This can be achieved by the use of the superior, secure WOWS Global online cap table system. The suite of tools available will benefit your startup in a myriad of ways.
To find out more please do not hesitate to get in touch with us for an initial, no-obligation discussion at: email@example.com