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VCs should seek out patent-rich startups despite assertion anxieties
- throwawaykf05 12y agoAnother study from 2007 finding similar correlation between patent ownership and higher chance of successful exits for software and biotech startups: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=802806 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=802806 Another 2010 study (paywalled, unfortunately) showing startups with "stronger than typical" IP more likely to succeed: http://m.iam-magazine.com/blog/detail.aspx?g=ae1d78db-9c5e-41aa-a4f9-161c7de6c9fb http://m.iam-magazine.com/blog/detail.aspx?g=ae1d78db-9c5e-4... (Note that the study was done by MIT Sloan and IPVision, an IP consulting firm, so something to keep in mind.) There are other studies (that I cannot find offhand, unfortunately) that found similar results in a wider range of industries. Of course, there is no solid explanation of what causes this correlation. It may be that startups with patents truly are more innovative or more immune to competition, which gives them an edge. Alternatively, it may just be that startup teams that file for a patent also tend to be those that prepare for all contingencies, and are thus intrinsically more suited to succeed. Nobody really knows.