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February 16, 2023 | Tom Ballard

How important are patents for raising capital?

A recent PitchBook Analyst Note says start-ups with patents raise larger rounds and have higher valuations.

Just last week, the inaugural session of the spring semester edition of the “Vol Court Speaker Series & Pitch Competition” focused on intellectual property.

How important are patents to successful fundraising for a start-up? Significant, according to a recent PitchBook Analyst Note.

“Start-ups with patents and patent applications in progress raise larger VC (venture capital) rounds on average,” PitchBook writes. “They also raise capital at much higher valuations than start-ups without such protection on their ideas, especially when it comes to angel investors, and achieve higher exit values down the line.”

The report can be downloaded here.

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