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SAFE and KISS Contracts (Problems of Implementation and Application in Russian Corporate Law)
EDN: ZLSDDX
Abstract
The purpose of the study is to analyze the possibilities of integrating modern mechanisms for attracting investments in startups into Russian corporate law, including a convertible loan agreement, a SAFE (Simple Agreement for Future Equity) agreement and a KISS (Keep It Simple Security) agreement, as well as to form a legal concept of a “startup regime” for business entities.
Key barriers to their application in Russian business entities have been identified: the lack of a legal definition of a startup, the complexity of corporate procedures, notarial requirements and the uncertainty of tax and bankruptcy regulation.
The study showed that the convertible loan agreement in Russian law has significant procedural restrictions associated with the conversion of a loan into a share or shares, while SAFEandKISS provide a more flexible and cost-effective mechanism for interaction between investors and startups.
For the successful adaptation of SAFE and KISS in Russia, it is necessary to supplement corporate law with the institution of a startup regime, which includes simplified procedures for business entities, special investment agreements and guarantees to protect the interests of investors and founders.
About the Authors
Vladimir A. Gramatchikov
Kutafin Moscow State Law University (MSAL)
Russian Federation
Russian Federation
Sadovaya-Kudrunskaya str., 9, Moscow, 125993.
Alexey V. Anisimov
Kutafin Moscow State Law University (MSAL)
Russian Federation
Russian Federation
Sadovaya-Kudrunskaya str., 9, Moscow, 125993.
References
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Review
For citations:
Gramatchikov V.A., Anisimov A.V. SAFE and KISS Contracts (Problems of Implementation and Application in Russian Corporate Law). Russian competition law and economy. 2025;(4):26-33. (In Russ.) EDN: ZLSDDX
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