IPlytics CEO Tim Pohlmann is among the authors of a current IAM-Magazine article on “Patent Positions and Start-up Success“. The study reveals that patents can play a substantial role for the success of start-ups. The link between patent ownership and success is particularly strong for start-ups in the software and biotechnology sectors. The study considered 829 SMEs and start-ups in which received investment from one of the nine most active venture capital (VC) funds in France (between 2002 and 2012). In this regard “start-up success” was defined as the occurrence of an initial public offering (IPO), merger, acquisition or leveraged buy-out (LBO). In the study patent value indicators are computed to compare value scores in relation to start-up success. Results show that patent quality significantly matters for success. Furthermore, the result reflects that due diligence practices only rarely take into account the value of the patents themselves. The authors thus suggest:

We suggest to consider the following points before investing in a company:

  • Valuate a company’s patent portfolio and make use of state of the art patent value indicators
  • Identify potential markets for the company’s technology by exploiting patent landscaping methods
  • Do not leave the analysis to your executive team but use a professional statistical software tool (e.g. IPlytics Platform)

When developing your patents as part of a start-up’s executive team:

  • Consider your patents as assets (i.e., do not consider them merely as a way to protect your company’s business);
  • Take the time to care about them – even if patents represent a long-term value, the patent system does not allow the possibility of patenting things later
  • Leverage your patents when needed to secure financing for your company through patent sales, patent back loans (collateral) or licensing.
  • If you are not a patent expert, use statistical patent software to measure your patents and track patent activities of your competitors or customers