IP as an Investment Magnet - Why VCs Prioritize Companies with Strong IP Strategies

Fenwick & West LLP
Contact

Fenwick & West LLP

Investors in deep tech don’t just evaluate technology—they evaluate defensibility. A company’s IP portfolio is often the difference between getting funded and being passed over.

According to recent research:

  • Startups that seek patents raise 40-60% more capital than those that don’t.
  • Late-stage deep tech companies with patents see valuations 51.2% higher than those without.
  • Patent-seeking companies account for 78.6% of VC exit value, proving that strong IP correlates with higher M&A and IPO outcomes (PitchBook, 2023).

Investors generally want to back companies that own their technology, not ones that can be easily copied.

If your deep tech startup is struggling to raise capital, it may not be a market problem—it may be an IP problem. Investors are looking for companies that have a clear strategy for protecting their innovation, not just developing it.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Fenwick & West LLP

Written by:

Fenwick & West LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Fenwick & West LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide