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Companies Investing In Startups Aren’t In Business To Nurture Startups

Companies investing in startups aren’t in business to nurture startups

Venture capital investments in the right new ventures can provide outsized financial returns. But a large number of industrial firms that back startups aren’t doing it only for the potential profits. Instead, they often invest corporate funds into startups relevant to their interests in order to shore up weakening aspects of their business, according to a recent study by Song Ma, assistant professor of finance at Yale SOM.

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