New joint EPO-EUIPO study on startup finance reveals how IP helps startups raise finance

European startups applying for patents and/or trademarks during their initial seed or early growth stages are up to 10.2 times more likely to secure funding from investors. What’s more, the ownership of European patents and EU trademarks is associated with an even higher advantage, with a rate of securing early-stage funding exceeding five times that of those with only national intellectual property rights. These are the key findings of a new study published jointly by the EPO and EUIPO.
The key findings of the study include:

• On average, 29% of European startups have filed for patents or registered trademarks, though there are significant differences between industry sectors.
• Startups increasingly make use of IP rights as they grow, with a strong focus on European IP rights at all growth stages.
• The filing of patent and trademark applications in the seed or early growth stage is associated with a higher likelihood of subsequent venture capital (VC) funding.
• The filing of applications for European patent and EU trademark is associated with an even higher likelihood of subsequent VC funding for startups (compared to just national IP rights).
• The filing of patent and/or trademark applications is associated with a more than twice as high likelihood of successful exit for investors.