Ownership of brands and patents is more than a shield against copying or tampering. It also provides an extra layer of assurance when securing financing. Startups that hold these intellectual property rights early on are up to 10.2 times more likely to obtain the resources they need for development.
This insight comes from a joint study by the European Patent Office (EPO) and the European Union Intellectual Property Office (EUIPO). The report, conducted by a European agency based in Alicante, examines how protecting rights can influence the success of young companies and their growth trajectory.
In broad terms, the study reveals that 29% of European startups have registered some form of intellectual property rights, with Spain showing a slightly lower rate at 23% among early-stage companies that hold trademarks or patents.
Biotechnology leads in the use of intellectual property rights, with nearly half of biotech startups in Europe filing patents or registering trademarks. Specifically, 48% have patents and 47% have trademarks, while 31% of biotech startups own both forms of protection—the highest concentration among sectors examined.
The sector with the next-highest share of startups holding IP rights is science and engineering, at 16%. In this group, 38% pursued trademarks and 25% filed for patents. Health care and manufacturing show similar patterns, with about 30% of firms in these fields securing some form of IP protection.
Trademarks can protect products and services, while certain innovations may not be eligible for patent protection. This distinction matters across industries as intellectual property strategies vary widely by sector.
Beyond these sectors, IP activity is prominent in media and entertainment (21%), information technology (20%), energy (19%), natural resources (18%), and sustainability (17%). Notably, stronger IP engagement is seen in sustainability (37%), energy (36%), artificial intelligence (36%), agriculture and livestock (36%), and natural resources (35%).
European protection
The study also suggests that owning IP rights in Europe offers a significant financing advantage for early-stage companies, with success probabilities markedly higher at the European level—often surpassing multiple national benchmarks. For trademarks, the likelihood of obtaining needed funding is especially pronounced, with figures around 6.1 times higher for trademarks and 5.3 times higher for patents. This dynamic is particularly relevant for deep tech initiatives, which rely on substantial investment and longer commercialization horizons, as noted by the researchers.
Differences emerge across European countries. Finland and France report the highest shares of startups with IP registrations, at 42% each, followed by Germany and Austria at 40%, Denmark at 34%, Italy at 39%, Norway at 37%, the Czech Republic at 31%, Sweden at 34%, and Switzerland at 32%. In Spain the rate is somewhat lower, with 23% of early-stage companies reporting IP registrations and 21% owning trademarks, while patents reach about 4%.
These patterns reflect broader observations about intangible assets and financing. IP rights are often a core element of a company’s value and a key factor in attracting investment and collaboration opportunities. The study also highlights a robust role for trademarks in safeguarding brand value across markets and industries.
In discussions about impact, executives emphasize that trademarks remain the most widely used form of IP protection and stress the importance of encouraging startups to register their marks. Public programs supporting IP registration for small and medium-sized enterprises are viewed as crucial to unlocking the full potential of emerging firms.
For the study titled Patents, Trademarks and Startup Financing, researchers linked national and European patent and trademark data with a global startup database to map the relationship between IP activity and financing. This work builds on earlier findings about how intellectual property behaviors correlate with turnover and growth among young companies.