The top tier firms are more likely to back the projects that have more likelihood of success, i.e. these firms have better capabilities to judge good projects and entrepreneurs. These firms can also help to attract better resources, who will plan it better. With higher rate of success and better back up, the entrepreneur is more likely to start a new venture because he is confidant of his capabilities, while the firm will also be willing to invest more in his new ventures, with more confidance than before, seeing previous track record.
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