Why Tech Startups Can't Afford to Ignore IP Strategy

In the fast-moving world of startups, patents far too often get sidelined. It’s understandable, founders are juggling product development, fundraising, hiring, and growth. All of which needs to have the full attention of the founding members. On top of that, patents are painstakingly difficult if you haven’t dealt with them before and about as fun as watching grey paint dry for your typical start-up founder. But skipping over your patent strategy is like showing up to a high-stakes poker game without knowing the rules. Spoiler alert: you’re probably going to lose.

If you think patents are just for big corporations with their own legal departments and deep pockets, it’s time to rethink. A smart, lean IP strategy can be an important tool for a startup. Not just for protection, but for sales, fundraising, valuation and exit.

Ola Wassvik, Co-founder and CCO at Lightbringer

Why Patents Matter More Than You Think

At their core, patents are a business tool. Yes, they protect innovation. But more importantly, they create leverage.

Here’s what the data* (and experience from the field) tells us:

Startups with patents have, on average, 80% higher sales in the five years after winning their first patent.
You're 50% more likely to raise venture capital if you hold at least one patent.
Company valuations are nearly 2x higher for startups with a patent portfolio.
IPO probability increases 5x, and M&A exits see 150% higher valuations.

In other words, this isn’t about getting a check in the “we have a patent” box. It’s about building momentum and protecting your upside. Because when you make it big, others will try to take what you have.

Startups Are Playing a Different Game

Unlike larger corporations, startups don’t have endless resources. That means you need to be more strategic, not less. You can’t afford to patent everything which means you have to patent the right things, cleverly and with a clear plan.

Patents aren’t one-size-fits-all. Founders pursue them for:

Defensive purposes (protecting your ability to operate),
Offensive leverage (using them in negotiations),
Licensing models (as a revenue stream)
Investment (many investors require patents to invest)
Or simply to make themselves more attractive for acquisition or getting a higher valuation.

All are valid, but you need to know which game you're playing.

No Budget? You Can Still Start

Even without budget for filings today, you can begin with:

Internal IP workshops to map your innovations and trade secrets.
Documenting the problems you’ve uniquely solved, because that’s where trade secrets, and thereby patentable material, lives.
Planning your patent vs. trade secret strategy now so you’re ready to move quickly when funding comes.

And here's the kicker: the first to file wins. Not the first to invent. A single day’s delay can mean losing everything to a faster competitor. This is one game where hesitation is extremely expensive.

A Patent Is Not a Trophy, It’s a Tool

Many founders waste months trying to craft the “perfect” patent. But as Ola Wassvik, co-founder of Lightbringer and inventor of over 40 patents, puts it: “Quantity beats quality almost every time.”

That’s not to say quality doesn’t matter, it does. But speed, adaptability, and breadth of coverage matter just as much, especially when you're building a portfolio to shield your business from aggressive competitors or copycats.

Make Patents a Growth Engine, Not a Legal Cost

The old patenting model is slow, expensive, and unpredictable, perfect for burning startup cash. But newer approaches (like those pioneered by companies such as Lightbringer) flip that script, offering faster, more transparent, and budget-friendly solutions that actually support innovation instead of hindering it.

Ultimately, patents are a strategic investment, one that can compound over time. Used right, they’re not just a protective wall, but a launchpad for your next phase of growth.

Bottom Line…

If you're an entrepreneur, don’t wait until you “have time” or “more funding” to think about patents. Your competitors won’t. The best time to start is now, with a strategy tailored to your business goals, budget, and innovation pipeline.

Because in the startup world, the winners are the ones that combine a great product and amazing go to market with the best IP strategy.

FARRE-MENSA ET AL. Harvard Business School, 2017
ANDY WHITE, JAMES ULAN, PitchBook Report, February 6, 2023

EXPERT INSIGHTS: The patent game