The European Patent Office (EPO) and the European Intellectual Property Office (EUIPO) have conducted research on the role of intellectual property rights in facilitating access to funding for European startups. It follows, among other things, that startups with patent and/or trademark rights are much more likely to attract venture capital.
The key findings from the research report are:
- On average, 29% of European starts-ups have filed registered IP rights, with important differences between industry sectors.
- Biotechnology is by far the most IP-intensive sector, with nearly half of start-ups using patents or trade marks.
- Start-ups increasingly make use of IP rights as they grow, with a strong focus on European IP rights at all growth stages.
- The filing of patents and trade marks at the seed or early growth stage is associated with a higher likelihood of subsequent VC funding. This effect is particularly important at the early stage, with a 4.3 times higher likelihood of funding for start-ups that filed trade marks, and a 6.4 times higher likelihood of funding for start-ups that filed patents.
- The filing of European patents and trade marks is associated with an even higher likelihood of subsequent VC funding for start-ups.
- The filing of patents and/or trade marks is associated with a more than twice higher likelihood of successful exit for investors. The highest likelihood of Initial Public Offering (IPO) or acquisition is observed for start-ups that filed both patents and trade marks.
Read the full report here.