Why Deep Tech Companies Need a Proactive IP Strategy

Fenwick & West LLP
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Fenwick & West LLP

Deep tech companies—whether in space, defense, robotics, AI-driven industrial automation, or advanced materials—face long R&D cycles, high capital requirements, and intense global competition. Yet some founders treat IP as an afterthought, delaying it until they hit major milestones.

That may be a critical mistake.

IP isn’t just a legal formality—it’s a strategic asset that attracts investment, builds competitive moats, and drives higher valuations.

According to recent data from Pitchbook:

  • Patent-seeking startups raise significantly more capital, with deal sizes 40-60% larger than their non-patent peers.
  • Companies that invest in IP command higher valuations—93.2% higher at the angel stage, 51.2% higher at the late stage.
  • Patent-seeking companies dominate exits, driving 78.6% of VC exit value despite making up only 24.1% of exits (PitchBook, 2023).

Early-stage deep tech companies that fail to develop an IP strategy risk stalling their growth, losing leverage in funding rounds, or even jeopardizing their long-term market position.

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

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