IP Boosts Startup Funding Success - A study

A recent study by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO) has revealed the significant impact of intellectual property (IP) rights on the success of European startups in securing funding. The report highlights that startups owning both patents and trademarks are, on average, 10.2 times more likely to successfully raise funds during their early stages.

The study also shows that 29% of European startups have applied for IP rights, with substantial differences across various industry sectors. Biotechnology leads as the most IP-intensive sector, with nearly half of its startups utilizing patents or registered trademarks. Other IP-intensive sectors include science and engineering, healthcare, and manufacturing.

The ownership of European patents and trademarks provides an even greater advantage, increasing the likelihood of securing early-stage funding by more than five times compared to national IP rights. Deep-tech startups, which often face challenges in developing breakthrough technologies due to high investment and long lead times, can particularly benefit from patents and trademarks in attracting investors.

The European Patent Office has introduced the EPO Deep Tech Finder, a new tool designed to help potential investors identify and assess startups with promising technologies. This initiative aims to connect innovative startups with the necessary resources to drive innovation.

The study also highlights the variations in IP ownership among different European countries. Finland and France lead with the highest percentage of startups with IP filings. Countries like Germany, Austria, Italy, and Switzerland also show a high propensity for startups to apply for patents and trademarks.

Overall, the report underscores the crucial role of patents and trademarks in enhancing the competitiveness of startups by protecting their innovations and intangible assets, thereby facilitating access to finance and fostering growth.

Access the full press-release here.