Step 1: First log into your Eqvista account and select the company profile that you want to issue the KISS. You will then be directed to the dashboard page. Click on “Securities” from the left-hand side panel for a drop-down menu to appear. In the drop-down menu, select the option “convertible instruments” as shown below.
Step 2: As soon as you are done with this, you will be directed to a new page as shown below.
Since no convertible instrument has been issued, select “Issue Instrument”.
Note: A KISS is also called the 500 Startups KISS. On Eqvista, you will find the option that says “500 Startups KISS”.
Step 3: By clicking on “Issue Instrument”, you will be directed to another page where you will need to add in the details to set up and issue the convertible note (KISS).
Here, you will have to add in details as shared below in three different panels:
Issue Convertible Instrument: This is the first panel for choosing the name of the shareholder. Once you do this, three other fields will appear. They are:
- Instrument Holder: This is the name of the shareholder you are issuing the KISS to. You need to select a name from the list of available shareholders. In case the person you want to issue to isn’t there, you need to add the shareholder then. Check out the support article here to add a shareholder.
- Convertible Note Name
- Issue Date
- Note Type: Here you will need to select the note type, which would be the 500 Startups KISS. Once you select this option, additional options will appear below for the convertible note details.
Investment Funds: Once you add in the details of the Note Type, this panel shows up with just one field to fill in, which is:
- Principal: The original amount that the company borrows.
Conversion to Shares: This is the next panel that has a total of five fields, including:
- Converts to: This is the type of stock that the convertible note converts to. We selected common stock here.
- Conversion Trigger Amount: This is the minimum amount that will trigger the conversion rate.
- Valuation Cap: The maximum company valuation when converting the note to shares.
- Early Exit Multiple: This is the guaranteed multiplied of the principal paid out. It can be kept as “zero” as well.
- Conversion Discount: This is the discount that is applied to the purchase of shares during the valuation of the company.
Fill in all the details based on your plan and click on “Submit”.
Step 4: Once you click on “Submit”, the KISS security will be created and you will be directed back to the following page which will show the details of the security.
From here, click on Actions and a drop-down menu will appear as shown below.
There are four options for altering the KISS security here. This includes:
- Edit Note: For editing or modifying a part of the security.
- Convert to Stock: This is to convert the note to stock manually before the maturity date.
- Mark as Converted: In case you have already converted the note to stock for the investor, you can mark it converted here easily.
- Delete Note: This is to delete the security in case the deal goes off with the investor or for any other reason.
Let us say that you want to modify this. In this case, select the option “Edit note”.
Step 5: By selecting this, a pop-up window will appear. Change the details in this box and select “Save”, as shown below.
Step 6: Once you do this, you will be directed to the updated page of the KISS security.