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Ask HN: Can a Kiss investor (debt version) ask for its money back?
Hello HN, I write because we are currently going through a rough moment just after starting to get better traction results. The thing is we have an institutional investor who previously told us they would likely invest in future rounds, and might even be interested in eventually acquiring us. Everything was great with them. But after covid they decided they were pulling out of all their investments outside of their core business area, and we are outside of their core business.
We signed the debt version of a KISS, and we are wondering if this entitles them to actually get their money back. Our lawyers at the time told us it was not the case, but with the current situation we want to be completely sure. We have not been able to find many resources on the topic, but the ones we have found either say (i) it's not a real debt or (ii) it is repayable after the maturity date. Any kind of information on the topic would be really appreciated. Thank you in advance and have a great rest of your weekend!
- smemten 6y agoI don't know much about the KISS structure either, but I hope you are able to resolve this! That is never news a founder wants to hear...
- iammr5 6y agoThanks a lot for the support! Yup, the news took us off guard we aren't happy at all :/ we just need to keep working hard and try to solve it
- uberman 6y agoIt is kind of impossible to know for sure without seeing your contract so listen to your lawyer is my best advice.
- iammr5 6y agoThanks! In case you know abt the Kiss structure it is exactly just like the original