{ "docId": "019f6b8f-71b9-7767-8357-69b177d37fb3", "docSlug": "jarvis-throne-vs-the-kingdom", "documentTitle": "Throne vs the kingdom", "authorId": "throne-vs-the-kingdom", "authorName": null, "documentKindSlug": "deck", "documentKindLabel": "Deck", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": null, "orientation": null, "aspectRatio": null, "pageNumber": 15, "pageCount": 45, "prevPage": 14, "nextPage": 16, "slideType": "other", "function": "establish_context", "density": "dense", "nDataPoints": 0, "notes": "Academic text page discussing resource dependence theory and founder-CEO succession.", "elementsJson": null, "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019f6b8f-71b9-7767-8357-69b177d37fb3/15", "deckHref": "/decks/019f6b8f-71b9-7767-8357-69b177d37fb3", "deckJsonHref": "/decks/019f6b8f-71b9-7767-8357-69b177d37fb3.json", "deckAnchorHref": "/decks/019f6b8f-71b9-7767-8357-69b177d37fb3#slide-15", "components": [ { "bbox": { "h": 0.065, "w": 0.672, "x": 0.168, "y": 0.536 }, "kind": "callout", "text": "Hypothesis 3: The inverse relationship between company value and founder control will be strong in startups in more capital-intensive industry segments but not in startups in less capital-intensive industry segments.", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "583b8191-ec4c-4512-b630-e954da5fc85f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.335, "w": 0.772, "x": 0.118, "y": 0.161 }, "kind": "paragraph", "text": "The more capital-intensive the company, the more critical it may be to attract resources in order to grow value, and the more control the company should have to give up to attract those resources (Pfeffer and Salancik 1978). Within larger companies, at both the corporate and business-segment levels, high capital intensity can have a negative impact on performance (Misangyi, Elms et al. 2006). For instance, high capital intensity can constrain strategic choices, leading companies to choose short-term solutions over longer-term investments (Qu, Pinsonneault et al. 2011). Startups in capital-intensive businesses have to invest more capital in product development and make other substantial investments in order to build the company. Such startups should have greater resource needs and thus may have to give up more control in order to attract those resources. Conversely, startups in low-capital-intensity businesses should be able to grow value without having to give up a lot of control. This leads to the following contingent hypothesis:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "922df72e-1d5f-486b-8ec3-245f81f0b839", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.038, "w": 0.772, "x": 0.118, "y": 0.094 }, "kind": "paragraph", "text": "company’s industry segment is capital intensive. Second, the tradeoff may differ between younger startups and older startups.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cb0df9d9-6fe2-49d7-bec7-b464cf45d6da", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.235, "w": 0.772, "x": 0.118, "y": 0.618 }, "kind": "paragraph", "text": "During the early stages of founding, founders’ skills are often better suited to the challenges faced by the young startup than to the challenges faced down the road. For instance, founders with technical or scientific backgrounds are well-suited to lead the initial product-development effort. However, as the startup’s needs broaden beyond technical or scientific challenges, the founders’ skills are often less suited to those new challenges. In essence, these founder-CEOs have succeeded at achieving the key operating milestone of completing initial product development, but that very success has increased the divergence between founder abilities and startup needs (Wasserman 2003).13 Thus, the need for - and", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e706f89f-a201-4b83-a840-073b9875f29f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.048, "w": 0.772, "x": 0.118, "y": 0.867 }, "kind": "source-note", "text": "13 This “paradox of entrepreneurial success” (Wasserman 2003) suggests that a startup’s pre-succession performance could be high, yet we could still see replacement of the founder due to the resource-dependence challenges examined here.", "attrs": null, "subkind": "source-note", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "982cea60-d120-4972-8ce5-65b61c5d73e4", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Pyramid Principle", "slug": "pyramid-principle", "agent": "Architect", "layer": "slide", "matchId": "86584807-90b4-4fb7-992d-f1ca7b38a14d", "evidence": "Hypothesis 3: The inverse relationship between company value and founder control will be strong in startups in more capital-intensive industry segments but not in startups in less capital-intensive indus", "confidence": 0.7 } ], "frameworks": [ { "name": "resource-dependence-theory", "slug": null, "matchId": "3839f5df-706e-4a85-b9d4-7446d239e5cf", "evidence": "Pfeffer and Salancik 1978 citation", "confidence": 0.9 } ], "arcBeats": [ { "to": 15, "from": 6, "beatId": "7f6c6f40-8ea0-409f-b760-3bfa165fe38e", "arcName": "The Sequoia Pitch", "arcSlug": "sequoia-pitch", "beatName": "Market Size", "beatSlug": "sequoia-pitch-market-size", "evidence": "The document discusses the methodology and data used to analyze the relationship between founder control and value creation.", "position": 1, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [ { "to": 20, "from": 10, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "93fc7fbb-9e7f-48f5-93cf-3a34bae2fc91", "evidence": "The document discusses the potential costs of inaction in terms of valuation and capital raised.", "position": 0, "objective": "Highlighting the consequences of not addressing the tradeoff between founder control and company value", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }