Abstract

One of the very first interactions entrepreneurs engage in when starting a new venture is splitting ownership between founding partners. Co-founder interactions start from a position of wanting to come together rather than through conflict or disagreement over extant issues. At the same time, the capabilities and resources differ even when their aspirations dovetail nicely. It is important that cofounders figure out ways to leverage the intersubjective core they share and overcome differences that might hinder their equity splits. The only way they can come up with an agreement that works for both venture and entrepreneur is if each cofounder strives to and is capable of taking the perspective of the other. Drawing on perspective taking literature from psychology, we examine the relationship between PT and equity splits between cofounders.

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