All in VALUATION

Patents and selling to enterprise: proving appeal to big companies

If you’re new to filing patents, you’ve probably discovered things are considerably different from what they were just a few years ago. With new patent filing rules put into place over the last couple of years, it’s become a major race now to take part in “first-to-file.” This can become problematic if you wait too long since someone else could perhaps patent an idea before you file the paperwork.

How much a patent worth to a VC?

Well, startups with at least one patent tend to have a valuation that is at least $1 million higher than without the patent. Indeed, each additional patent can also add $1 million to a startup’s valuation all by itself. So, $1 million is one way to measure how VCs value patents.