It will come as no surprise that startup founders spend substantial time raising money, jumping through complex hoops every step of the way. As a result, they crave simplicity and low friction in the mechanisms and legal structures they use to bring in that needed capital, especially at the earliest stages of the startup’s life–when the transaction costs are a more material portion of the funding.

It’s little wonder, then that founders have fallen in love with short, easy documents like the SAFE (simple agreement for future equity) and KISS (Keep it Simple Security) or the slightly longer and more timeworn convertible note. Each of those documents is designed to enable investors to fund a startup without agreeing on price today and without taking the time to resolve so many of the open issues.

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