In Europe, the private equity and venture capital ecosystem manages a staggering €1.154 trillion. An enormous amount of capital is available for companies to grow and prosper. But what does this mean for your business, and how can you, as an entrepreneur, access this capital?
The answer often lies in something many entrepreneurs underestimate: patents. Capturing your innovation is more than just a way to protect your ideas. It is a strategic move that makes your company more attractive to investors and gives you access to capital and expertise.
Patents as a trump card
Patents turn your innovation into a tangible asset. They signal that your company is concerned with the here and now and the future. For investors, this is a powerful signal. It shows that your company takes innovation seriously and has a competitive advantage that cannot be easily copied. In a world where technology and innovation drive economic growth, patents can provide that extra confidence that puts investors over the top.
Companies with patents have a stronger bargaining position and attract investment more quickly. Investors see patents as a way to mitigate risk. They know that your company has a better chance of capturing and maintaining market share with patents. This not only makes your company safer but also more valuable in their eyes.
The World of Patents
With the help of Dutch and European patent attorney Marco Coolen (AOMB) we get a better understanding of the world of patents. How do they work, why are they important, but also: when do they lose their usefulness?
View The World of Patents Series
More than just capital
Within Europe, private equity and venture capital are spread across various sectors and regions. According to data from Invest Europe, the European private equity and venture capital association, millions of Europeans are employed by companies supported by these investments. This highlights the importance of private equity and venture capital in creating jobs and stimulating economic growth.
But there is still plenty of room for growth, especially within Europe. Of all investment rounds above €25 million, about 95% of the funding comes from abroad, especially the US, as we read recently in the FD. Experts say that a more significant role for pension funds would be helpful in getting that more balanced. After all, pension assets can also be profitable by investing them in fast-growing Dutch tech companies. That makes the competition for their attention more exciting and the importance of visible value even more significant.
Because as companies grow, private equity plays an increasingly important role. These investors bring in not only capital but also valuable expertise and skills. They understand your market and can provide strategic advice to take your company to the next level. However, your company must show that it is ready for growth to access these resources. And this is where patents come back into the picture.
Smart move
So, by investing in patents, you open the door not only to capital but also to the expertise you need to grow your business. It’s an action that often pays for itself more than once in terms of protection and new opportunities.
As an entrepreneur, it is essential to think strategically about the future of your business. Ask yourself: how can I turn my innovation into value? How can I ensure that my company is attractive to investors who can offer me financial resources and strategic insights?
Patents are a key to growth. They help attract investors and give your company the structure and confidence needed to stand out in a competitive marketplace. By investing in patents today, you are preparing your company for a successful future. Because in the world of private equity and venture capital, patents are often the difference between good and great.
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