The study said that young companies can gain market insight, increase buyer awareness, and fine-tune products by having positive and well-timed interactions with these crucial influencers.

Initiating early communication with analysts can greatly enhance the valuation and success of newly established companies in the market.

The research was conducted by the University of Edinburgh Business School. The study – titled The State of Startups with Industry Analysts (SSIA) – was completed with two leading industry insiders. It is based on an extensive survey, and follow-up conversations, which involved around 500 B2B technology firms, investors, mentors, and industry analysts, based mostly in Europe and the US.

Managers at startups and scaleups, which are companies in their first decade of expansion, as well as their networks of venture capitalists and mentors, were interviewed by researchers. In addition, over 200 industry analysts were consulted.

Their findings contrast the expectations of start-ups with the real-life experience of analysts, whose role is to assess emerging technologies and how vendors are performing.

Analysts play a crucial role in assisting buyers to make well-informed purchasing decisions and aiding vendors in enhancing their strategies and offerings, utilising their extensive knowledge, and understanding. This function is particularly critical for technology startups aspiring to penetrate a market.

Despite four out of five analysts saying that they work with startups specifically to identify and recommend emerging vendors to buyers, only 10% of startups believe that collaborating with analysts will assist them in increasing product awareness.

Most analysts prefer to hear from startups at an earlier stage, while two-thirds of startups believe their product needs to be widely available to gain access to analysts.

According to the research, 57% of the startups involved and 63% of venture capitalists and business mentors aim to increase their collaboration with industry analysts by 2023.

Industry analysts have consistently been ranked among the top three most influential factors in shaping B2B technology strategy and purchasing decisions, according to prior research.

Startup research shows that companies featured in top analysts' publications had a survival rate of 84% after four years, which is significantly higher than the average of 50%.

Prominent venture capital firms like Sierra Ventures, Andreessen Horowitz and Sapphire Ventures Partners have long stressed the importance of industry analysts to B2B technology startups.

The project is sponsored by AR productivity software company ARInsights, and AR intelligence platform and services provider Spotlight AR.

“This research has been sorely needed in the startup community,” says lead researcher Professor Neil Pollock, of the University of Edinburgh Business School. “It might prove the most impactful research for startups this year.”

Hamburg-based analyst Chris Holscher, who took part in the study, emphasises that startups can get meaningful access to top-tier industry analysts much earlier than they assume.

“It can mean years of advantage in getting to product-market-fit, building brand reputation, de-risking investment and in effect strengthening the business valuation,” says Mr Holscher.

Given the impact of industry analysts in B2B technology markets, no vendor can afford to not use them, according to New Jersey-based analyst Robin Schaffer, who also took part in the study.

“As a startup aiming to break into a market against established vendors, disrupt a market, or even create a new category, you should engage analysts early and strategically," says Ms Schaffer.