Taken from Wyeast website:
In this phase, oxygen is extremely important. Oxygen is used by yeast for synthesis of sterols and unsaturated fatty acids that are necessary growth factors. Without oxygen, these lipids can’t be biosynthesized and growth will be very limited. The sterols and fatty acids produced are also very important in the structure of the cell membrane and the ability of the yeast to respond to external and internal stresses. Adequate oxygen in the wort when the yeast is pitched is essential to a successful fermentation and long-term health of the culture.