Patents, trademarks, and their complementarity in venture capital funding

Haibo Zhou, Philipp G. Sandner, Simon Luca Martinelli, Joern H. Block

Research output: Journal PublicationArticlepeer-review

72 Citations (Scopus)

Abstract

This paper analyzes the effects of patents and trademarks in the financing of start-ups through venture capitalists (VCs). Patents and trademarks signal a start-up's technological and marketing capabilities. We find that patents and trademarks not only have direct effects on venture capital financing but also have complementary effects. Start-ups that apply for both patents and trademarks yield higher VC funding than do those firms that apply for only one of the two IP rights. Furthermore, we find that the complementarity between patents and trademarks exists only in initial VC funding rounds. Our results suggest that early-phase start-ups seeking their initial VC funding do best when stressing both their technology and marketing capabilities. Accordingly, entrepreneurship policy should encourage start-ups to build both technological and marketing capabilities.

Original languageEnglish
Pages (from-to)14-22
Number of pages9
JournalTechnovation
Volume47
DOIs
Publication statusPublished - 1 Jan 2016
Externally publishedYes

Keywords

  • JEL classification L26
  • M31
  • O34

ASJC Scopus subject areas

  • Engineering (all)
  • Management of Technology and Innovation

Fingerprint

Dive into the research topics of 'Patents, trademarks, and their complementarity in venture capital funding'. Together they form a unique fingerprint.

Cite this