Efrat Kasznik (Extension): Patent Trends in Startups

The Berkeley Patent Survey (2010):
"For your last innovation you did not patent, which if any of the following influenced
your company's decision?"

These were the top reasons reported by startups for not filing patents. The two most popular responses were related to the cost of patents. In fact, other studies show that startups are becoming increasingly unlikely to file for patents with time. This trend is true for companies who never apply/applied for patents, but it's the exact opposite from companies who have applied for at least one patent. Companies who file for at least one patent are actually more likely to apply for more patents. In fact, they are applying for a greater number and at a fast pace.

The deciding factor for startups in patent application is highly dependent on influence from VC investors. A case of at least 80% of companies backed by large companies such as Samsung Ventures, Johnson & Johnson Development Corp., and Motorola Ventures have filed at least one patent. Healthcare investors, such as De Novo Ventures and Delphi Ventures, are among the highest in patent emphasis with a minimum of 90% of their funded companies having filed at least one patent. However, seed-stage, or "angel", investors round out at the bottom: only about 13% of companies funded by VCs such as 500 Startups, SV Angel, and High-Tech Gruenderfonds have filed patents.