Where’s ‘getting a patent’ on your startup’s to-do list?
If you are like most founders, that particular task might be somewhere between “shop for a company jet” and “ring the opening bell on the New York Stock Exchange”—i.e. pretty far down on the list.
But here are five solid reasons even the newest startups may want to become patent-pending sooner rather than later.
1) Having a patent will increase your chance of getting funded
Approval of a single patent application increases a startup’s probability of securing VC funding by 53%. And when you think about it, that makes perfect sense because VCs want to bet on companies with protected IP.
2) More patents = higher valuation
According to The Allen Institute for Artificial Intelligence, even filing for one or more patents can increase in funding-round valuations by 20% or more.
3) Patents can increase your sales
Startups with at least one patent show sales growth over 50% higher than startups without a patent.
4) Patents can attract employees and increase employment growth
According to the U.S. Patent and Trademark Office, a startup’s first approved patent application increases employment growth over the next five years by 36%.
5) Patents improve your odds of a successful exit
Perhaps the strongest argument for getting a patent sooner rather than later also is this: a successful patent application increases the probability of an IPO by 153% or being acquired by 84%.
So why don’t more start-up pursue patents right away? Up until a few years ago, applying for a patent was an expensive, lengthy process that involved hiring an intellectual property law firm, getting them up to speed on your technology, and then embarking on a multi-month back-and-forth dance with the U.S. Patent Office.
But now there’s an easier way. TurboPatent has developed an AI-based, machine learning PatentBrain™ which their hand-picked patent experts use to draft and file patent applications quicker and with better results. That means instead of $6-10K and several months worth of effort, TurboPatent helps start-ups become patent-pending in less than 30 days for about $2,000 (plus patent office fees).