July 7, 2014
KISS: one of America’s favorite rock bands, and now the title for 500 Startups’ newest throng of free legal documents for founders and investors. The acronym for 500 Startups stands for “Keep it Simple Security”, and they officially announced the release of these documents today.
According to their blog post, the free legal documents were designed to save founders and investors alike both time and money.
“We’ve seen lots of people get screwed over in the past (both founders and investors, and sometimes people = us), and we’ve also paid a lot of money to lawyers (who are otherwise very nice people) who don’t really need any more money,” says Gregory Raiten in the blog post.
The KISS legal docs were created specifically to be flexible without being overly customizable, simple while still including necessary features, and balanced from both a company and investor standpoint. And all of the KISS docs have been drafted alongside multiple Silicon Valley law firms and early-stage investors.
“We’ve put in a lot of work to make KISS docs one of the best convertible instruments on the market, and we encourage companies seeking an investment from 500 to use KISS docs (either flavor is fine with us). In fact, we’d love to see KISS docs adopted by other investors, thereby reducing legal costs for everyone and eliminating some of the friction involved in closing a round of financing,” says Raiten.
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