What’s the difference between SAFE vs KISS?

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Wondering what are the common differences between Simple Agreement For Future Equity (SAFE) and Keep It Simple Securities (KISS)?

Fundamentally, SAFE and KISS notes are convertible security notes, under which the investor is promised the future equity in the company at a lower valuation than that of the financing round’s valuation of the company such that the investor pays a lower price per share. In essence, it aims to reward the investor for having confidence in and taking the risk of investing early in the company.

Broadly speaking, SAFE is a strict conversion note, while KISS takes on the characteristics closer to a convertible loan note, but the table below highlights the essential, specific differences. That being said, do note that both notes can be varied and have terms changed to differing extents.

Whether you’re a startup, investor, or a VCC, you might need convertible notes as a vehicle to obtain initial financing from Investors.

Learn more about the differences between these model convertible investment documents by comparing the following factors:

Variations
Valuation Cap
Discount
Interest
Maturity Date
Most Favoured Nation (MFN)
Prepayment Option
Conversion Trigger
Sale of Company
Insolvency/Dissolution
Rights
Representations
Transfer of Note
High-Resolution Fundraising

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Eric Chin

Eric comes from banking background. He provides consultancy to local and foreign entities on the ideal market-entry strategies for setting up or expanding operations in Southeast Asia.

Eric also provides advisory to fund managers and family offices on structuring as well as applicable tax incentives. He has also set up many VCC structures for licensed fund managers.

SAFE vs KISS in Singapore

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