A recent study by the European Patent Office (EPO) and the EU Intellectual Property Office (EUIPO) has highlighted the significant impact of intellectual property (IP) on the success of European startups. 

The study aimed to explore the correlation between the possession of IP rights and the ability to secure funding, especially in high-tech industries.

The research found that startups with patents and trademarks are 10 times more likely to secure funding compared to those without. Notably, the biotechnology sector leads in acquiring these rights, with nearly half of the startups in this field holding patents or trademarks. The advantage is even more pronounced in the early stages, where European IP rights increase funding chances fivefold over national-only IP rights.

The study further reveals that IP rights usage varies significantly across industries, with biotechnology startups leading the charge—nearly half of the new companies in this sector hold patents or trademarks. Close behind are sectors like science and technology, healthcare, and manufacturing, each showing substantial engagement with IP rights. For example, in the science and technology sector, 47% of startups have secured trademarks, while 25% hold patents. This strategic use of IP not only enhances their competitive edge but also significantly boosts their chances of securing early-stage funding and sustaining long-term growth. 

By understanding and implementing IP strategies, startups across these diverse sectors can attract more investment and secure a stronger foothold in the competitive global marketplace.

This insight emphasizes the crucial role of patents and trademarks in enhancing startup viability and attracting investors. The study underscores the need for robust support systems to help startups secure IP rights, ensuring they can compete effectively on a global stage and drive economic growth.

For startups looking to scale and innovate, understanding and leveraging IP rights is more than a legal checkbox; it’s a strategic move that can dramatically increase your chances of securing the necessary funding and partnerships.