

VCs should seek out patent-rich startups despite assertion anxieties - jrwit
http://www.iam-magazine.com/blog/detail.aspx?g=96900bb5-2d0b-4c87-b46f-85f8b0472f1c

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throwawaykf05
Another study from 2007 finding similar correlation between patent ownership
and higher chance of successful exits for software and biotech startups:

[http://papers.ssrn.com/sol3/papers.cfm?abstract_id=802806](http://papers.ssrn.com/sol3/papers.cfm?abstract_id=802806)

Another 2010 study (paywalled, unfortunately) showing startups with "stronger
than typical" IP more likely to succeed: [http://m.iam-
magazine.com/blog/detail.aspx?g=ae1d78db-9c5e-4...](http://m.iam-
magazine.com/blog/detail.aspx?g=ae1d78db-9c5e-41aa-a4f9-161c7de6c9fb)

(Note that the study was done by MIT Sloan and IPVision, an IP consulting
firm, so something to keep in mind.)

There are other studies (that I cannot find offhand, unfortunately) that found
similar results in a wider range of industries.

Of course, there is no solid explanation of what causes this correlation. It
may be that startups with patents truly are more innovative or more immune to
competition, which gives them an edge. Alternatively, it may just be that
startup teams that file for a patent also tend to be those that prepare for
all contingencies, and are thus intrinsically more suited to succeed. Nobody
really knows.

