A study has found that when startups file for patents and trademarks in advance, their chances of securing funding increase by up to 17.1 times, and their likelihood of achieving an exit (such as IPO or M&A) more than doubles.
On July 21, the Korean Intellectual Property Office, together with the National Intellectual Property Committee and the Korea Institute of Intellectual Property, jointly announced the results of a study titled "The Importance of Patents and Trademarks in Startup Financing," which was commissioned to the Korea Development Institute (KDI).
The study empirically analyzed the impact of intellectual property activities on the funding and exit potential of startups, based on investment information and patent and trademark filing data from 2,615 startups active between 1999 and 2025.
The results showed that startups that engaged in patent and trademark filing activities in advance had at least a 1.7 times higher probability of securing funding compared to those that did not.
In particular, the probability of securing funding for startups increased by 1.7 times at the seed stage, 3.1 times at the early stage (Series A to B), and up to 6.3 times at the late stage (Series C or later). When late-stage startups expanded their patent and trademark filings from domestic to overseas, the probability of securing funding increased up to 7.1 times.
The type of intellectual property also influenced funding opportunities. When startups at the late stage filed for both patents and trademarks in advance, the probability of securing funding increased by up to 9 times.
Furthermore, the Korean Intellectual Property Office emphasized that when late-stage startups filed for 20 or more patents and trademarks, their probability of securing funding rose to as much as 17.1 times.
Patent and trademark filing activities by startups also had a positive impact on their likelihood of achieving an exit. The study found that when startups filed for 20 or more patents and trademarks both domestically and internationally, their probability of exit increased by up to 5.9 times.
Given these findings, some argue that in order to maximize effectiveness in nurturing startups, both financial and intellectual property strategies should be supported simultaneously.
Lee Kwanghyung, the private chairman of the National Intellectual Property Committee and president of KAIST, stated, "This study has proven that intellectual property plays a crucial role in the growth of startups. The government should not stop at simply providing financial support to startups, but should also play a practical role in helping them establish intellectual property strategies, taking these research results into consideration."
Kim Wanki, commissioner of the Korean Intellectual Property Office, said, "These research results indicate that intellectual property information of domestic startups serves as an important indicator for external investors in evaluating the growth potential and value of companies. We will continue to expand patent policies so that startups can gain recognition for their innovation value through intellectual property rights and establish a virtuous cycle necessary for growth, including attracting investment."
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