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Tracking trends critical to life sciences and technology companies.

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Why Deep Tech Companies Need a Proactive IP Strategy

Deep tech companies—whether in space, defense, robotics, AI-driven industrial automation, or advanced materials—face long R&D cycles, high capital requirements, and intense global competition. Yet some founders treat IP as an afterthought, delaying it until they hit major milestones.

That may be a critical mistake.

IP isn’t just a legal formality—it’s a strategic asset that attracts investment, builds competitive moats, and drives higher valuations.

According to recent data from Pitchbook:

  • Patent-seeking startups raise significantly more capital, with deal sizes 40-60% larger than their non-patent peers.
  • Companies that invest in IP command higher valuations—93.2% higher at the angel stage, 51.2% higher at the late stage.
  • Patent-seeking companies dominate exits, driving 78.6% of VC exit value despite making up only 24.1% of exits (PitchBook, 2023).

Early-stage deep tech companies that fail to develop an IP strategy risk stalling their growth, losing leverage in funding rounds, or even jeopardizing their long-term market position.

Tags

hardware, intellectual property, ai & machine learning, advanced transportation & robotics, defense innovation & govtech, space & aerotech, semiconductors