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Start-ups benefit from corporate endorsement

Start-up technology firms with investment from established corporates benefit significantly over those with pure venture capital backing, according to a new study from the London Business School and Helsinki University of Technology.

The research establishes that the financial involvement of one or more corporates is directly associated with significantly higher first-day valuations when high-tech firms float on the stock market. The start-ups with corporate backing also tended to go to the market earlier.

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