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Fabulous video. I took care of 1, 3, 4 using FlexUp and we're still using it instead of using SAFE's. Hopefully nothing is going to come back and bite me.

Vesting doesn't do much to make an equity split more fair. I assumes that the underlying split is fair in the first place. Which, especially in the case of an even split, is rarely (if ever) the case. As you pointed out, things change. Additionally, vesting may not reflect the nature of the separation properly. Someone could be fired during that first year without cause and lose their share. Or, they could quit the day after the one-year cliff. These are the incentives of vesting. I encourage you to check out the Slicing Pie model which replaces time-based vesting and ensures everyone gets what they deserve. It self adjusts based on changes in effort and commitment.

Question: In the common liquidation preference, the investors get exactly the invested money back. How is the investment worth it for them in that case?

This was very informative. Thank you.

Nice explanation in the book of "Rank and Yank". 18:30 Layoffs aren't a desperation move to avoid bankruptcy. It is an ongoing process to pump up the stock price by publicizing routine layoffs (lowering expenses). The 10% of employees who are perceived to have the least productivity are laid off. Every year. Office politics and paybacks ensue. Hardly increasing productivity. Meanwhile senior executives cut deals with the board of directors (who represent shareholders) for millions of dollars in stock options (no losses if the stock goes down), salary and benefits.

How I define success for my interprise? People willing to work hard or are getting older will never have to worry about becoming homeless or not having something healthy and fresh to eat.

A very good conversation. I come from Sweden (yes... I know some Americans thinks we are commies) but we still have our thriving middle class, healthcare AND we have many great successful companies. It can be done. We call it social capitalism, or something like that.

Why do Americans venerate corporate CEOs? Absurd idolatry. CNBC and celebrity co-dependent partners. The pathway starts with credentials from elite schools. Break this by eliminating legacy admissions

How do Autistic People fit with this?

Great video but the background music is unnecessary

I enjoyed watching this and taking notes so I will apply the information. Last week I listened to Charles on Greg McKeown. This reinforced the learning. I am so excited to put this into practice. Thank you for your willingness to respond to questions and comments via email.

No Worksheets

Extremely valuable advice from the conversation

It's Charles Duhigg. This deserves way more views. It needs to be boosted!

So he said please, in a very nice way, and she converted her national status and became a spy and helped to bring her own country down. Guess what that didn’t happen that’s not a truism that’s a fantasy used to prove a point.

When I read his book, after each paragraph, I just stopped and shook my head. Jack Welch was evil.

Wonderful!!

Over the years the same companies have been using crisis economics to be profitable. We just hope they are not orchestrating crisis mode to their benefit

Yes, it is the day-to-day moments that build a solid foundation for any relationship

Interesting and truly meaningful conversation we could all adopt almost regardless of our age and occupation. Particularly the 'Margin(s) of the Safety' concept! I work with entrepreneurs on their pricing to achieve exactly what you both agree on, establishing breakeven and that margin of safety for their business meaning low debt assured profitability and the ability to chart their own course on their own terms. Not on an investors terms which may be "grow, grow, grow" at (almost) any cost. 👍👍

This is a wonderful topic and perspective from Shane! In a similar, but different vein as a startup CEO, I often coach my leadership team on the value of vacillating between a feeling of complacency and panic. Complacency allows clarity in ordinary moments, but a sense of “panic” can create urgency and gut level decision making that can be extremely useful, if not for prolonged periods. Thanks for a great podcast Kyle!

Is a good summary of the author books

Thanks Kyle .. loved our conversation

This book is great public service and needs to be taught in school

inspired to think like Ed

Thanks so much Kyle! Polina I really appreciate you sharing your wisdom. Lots of great nuggets here that I will share with clients and groups. Have a great day.

Thank you for having me, Kyle!!

Outstandingly clear, accurate and concise primer on an important topic. Thank you, Kyle!

Great content, get a good mic though, will take the videos to the next level!

Thanks, Kyle. A lot of information for a beginner like me, but a great start. Appreciated !

Thanks for your video! ❤

finally , someone explains it the right way !!

Very informative for the L3C!

We recently went through the conversation process of 4 rounds of SAFES, it was not founder or follow on round investor friendly. Not surprising, It is an incubator friendly investment vehicle that does make it easy to take in money now but you pay with complexity later. Very nice job on the video! Fair and informative!

Interesting topics.

Jeff Immelt, Jim McNerney, Dave Calhoun, Bob Nardelli - 4 candidates who were short listed by Jack Welch to succeed - each went to lead a company and it will be a good study of what happened to those companies under the leadership of these people.

I've been on your newsletter for a while and I love your work. Thank you for sharing your knowledge.

Comes down to lazy, cherry picked boards. Not just the CEO. Think Enron , think WorldCom, ...and think GE. Members too overwhelmed to make informed decisions end up relying on the " recommendations " of the CEO and his minions.

I’m an equity investor and I’ve been bit By a few of these in the past. Great list!

Great content.Thanks. I use the "Slicing pie" method for point 1. It forces some really important discussions upfront.

Wow! Amazing pointers! I wish I had seen then when I started my business! Would have saved me some head-aches. (with respect to handing out too many shares to zombies early on)

I’ve been a subscriber of your newsletter for a while, and both that and this series of videos is really well done and helpful. Thanks for developing both!

Thanks this was a really helpful explanation

Bullshit.

Great work David Gelles!

Probably the most important topic of the day in America The Beautiful, a discussion between 2 intelligent Americans, and what have we got? 544 views and 4 comments, 2 of which are not in English--the American native tongue. I think we're screwed. And just when Welch started taking apart The Beautiful, other Americans helped China step onto the global trade stage. Fast forward 40 years, the Chinese have managed to bring 800 million people out of abject poverty and their leaders talk about modest prosperity for all. For all. For the majority. And as an American minimum wage earner, per Mr. Gelles, I'd be feeding my family on an income that has depreciated 75% compared with inflation. I no longer think it, I know it. We are screwed. Even the weapons manufacturers and our politicians of both parties will not survive the wars we're waging on ourselves and the rest of the world. But they don't know that. Yet.

"Fear makes you hold on too tightly" 👍

A great topic...on the right path to bring back Capitalism with a human face.

Well done and a natural extension Kyle. Fix your lighting, btw.

I listened to interview on NPR and TH-cam and found Mr Gelles wanting. Mr Gelles would show balance if he spoke of the biggest mistake that Welch made-SELLECTING JEF IMMELT AS HIS SUCCESSOR! Immelt at least twice SWORE that GE would make their numbers and/or would not lower their stock % payout. In both cases,one year apart, he lied about these financial within a few weeks of poor performance lowering stock price and a 65% lowering of