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  "documentTitle": "Throne vs the kingdom",
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      "text": "A core dilemma is that the startup’s resource dependence drives a wedge between startup value and founder control. Each step of the entrepreneurial resource-attraction journey poses a tradeoff between attracting the resources required to build company value and being able to retain control of decision making. High-quality co-founders and non-founding hires should demand more equity and/or decision rights than will lesser co-founders and hires. The same is true of investors who can add the most value, compared to lower-value investors (for conceptual arguments, see Amit, Glosten et al. 1990; for empirical evidence, see Hsu 2004). Such investors want both to own a stake in the venture to gain from its growth in value and to protect their investments by having decision rights and influence through a board presence (Pfeffer and Salancik 1978).",
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      "text": "The more value that would be provided by the core founder, the more control s/he should be able to retain; the more value that would be provided by the other three resource providers, the less value that the core founder should be able to retain. On one side, core founders who have accumulated direct human capital in the form of prior founding experience (Sapienza, Korsgaard et al. 2003) and have developed the social capital necessary to attract employees to the startup, should be able to keep more control (Wasserman 2003). The other resource providers should have the opposite effect on control of the startup; in order to attract value-added resource providers, founders should have to give up a share of the venture’s control and its future rents (Coff 1999). For instance, less studied than investors – but still very important from a resource-dependence perspective – is the way in which cofounders and hires might affect control of the startup. In young businesses, there is a close relationship between human capital and the success of the startup, especially for human capital developed through actual work experience (Unger, Rauch et al. 2011). Thus, the more cofounders who join the team, and the more experienced those cofounders, the more decision-making control the core founder should have to give",
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