Geekzone: technology news, blogs, forums
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Tech law firm Simmonds Stewart introduces KiwiKISS and the KiwiSAFE
Posted on 17-Sep-2015 20:00. | Tags Filed under: News.

A common complaint heard from New Zealand startups is that the investment documents used by local seed investors are founder unfriendly and painfully complex.

In response, technology law firm Simmonds Stewart has published two new seed investment documents in the firm’s library of free legal templates for use by New Zealand startups:
  • Kiwi keep investment simple security  – based on 500 Startups’ “keep-it-simple-security” (KISS)
  • Kiwi startups agreement for future equity – based on Y Combinator’s “simple agreement for future equity” (SAFE)
The terms of the KiwiKISS and the KiwiSAFE are faithful to the principles of the original US versions, which have received wide acceptance not only in the US but also in Southeast Asia.  However, they are designed for use in New Zealand and will be familiar to users of Simmonds Stewart’s other free templates in terms of style and simplicity.

Lee Bagshaw, who regularly advises on venture capital financing deals in Southeast Asia, says:

“In Singapore, where there have been a multitude of seed investments executed in the last 3 years, the Y Combinator SAFE and 500 Startups KISS are commonly adapted for use locally. The familiarity to local and global investors of the terms set out in these documents creates significant efficiencies on deal execution. Any investment up to USD1million is typically by way of some form of convertible note. As a comparable common law jurisdiction, NZ could benefit in the same way if investors and companies are willing to embrace these more practical approaches.”

Bagshaw says that New Zealand is significantly out of sync with global venture capital trends. Seed investments in this country commonly involve investor friendly documentation that can run to over 50 pages. The restrictive and often onerous terms imposed in these deals would rarely be seen in the US and in other tech hubs until the company was raising a much larger “series A” financing round.
In contrast, seed investments using the KiwiKISS or KiwiSAFE documents would involve a simple 10 page agreement on internationally standard terms.

The upside for startups using the KiwiKISS or the KiwiSAFE will be a simple investment document without lots of terms to negotiate or limiting the future options of the company. This will allow startups to spend their time and money on growing their businesses.

For investors, a key upside is avoiding the painful arguments about startup valuations that go with the existing equity investment model.  

More information:

comments powered by Disqus

Trending now »

Hot discussions in our forums right now:

Gigabit cable now available
Created by sub, last reply by cynnicallemon on 21-Oct-2016 11:55 (45 replies)
Pages... 2 3

Kiwibank Platinum by fees not by service?
Created by joker97, last reply by richms on 21-Oct-2016 23:06 (19 replies)
Pages... 2

screwing a gate post into concrete
Created by hattrick123, last reply by simon14 on 18-Oct-2016 14:05 (33 replies)
Pages... 2 3

Who is this women? She is possibly the most famous women on the internet and nobody knows who she is.
Created by jimbob79, last reply by cynnicallemon on 20-Oct-2016 13:28 (14 replies)

Sony XZ Owners discussion
Created by networkn, last reply by gasgob on 22-Oct-2016 08:55 (67 replies)
Pages... 3 4 5

Insane Noel Leeming pricing - $400 Micro SD card
Created by sidders80, last reply by joker97 on 20-Oct-2016 19:30 (27 replies)
Pages... 2

Is windows 10 anniversary update causing you problems
Created by robjg63, last reply by mdav056 on 20-Oct-2016 14:01 (27 replies)
Pages... 2

Don't worry about drugs. Helium possession is what will get you busted!
Created by Rikkitic, last reply by Rikkitic on 19-Oct-2016 11:11 (27 replies)
Pages... 2