{"id":5546,"date":"2021-05-26T09:49:32","date_gmt":"2021-05-26T09:49:32","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=5546"},"modified":"2021-05-26T09:58:47","modified_gmt":"2021-05-26T09:58:47","slug":"fundraising-for-start-ups-through-patents","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/fundraising-for-start-ups-through-patents\/","title":{"rendered":"Fundraising For Start-ups Through Patents &#8211; A Complete Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Sometimes, start-ups may run out of money and have not enough money to run the business since they face an insufficiency of finance more often, which may harm their upcoming prospects. Hence, it is generally desirable for start-ups to first make sure the finance availability, upon which rests of all other concerns of an organisation. The sources of fundraising for start-ups, apart from friends and family, are different, to angel investors, crowdfunding, to name a few and business network. However, these days, Patents are also considered to be a capable source of fundraising for start-ups.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a504a7f3da57\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a504a7f3da57\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/fundraising-for-start-ups-through-patents\/#An_Overview_of_Patent\" title=\"An\nOverview of Patent\">An\nOverview of Patent<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/fundraising-for-start-ups-through-patents\/#Different_Types_of_Patents\" title=\"Different Types of Patents\">Different Types of Patents<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/fundraising-for-start-ups-through-patents\/#Fundraising_for_Start-ups\" title=\"Fundraising\nfor Start-ups \">Fundraising\nfor Start-ups <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/fundraising-for-start-ups-through-patents\/#Different_Stages_of_Fundraising_for_Start-ups\" title=\"Different\nStages of Fundraising for Start-ups\">Different\nStages of Fundraising for Start-ups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/fundraising-for-start-ups-through-patents\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_of_Patent\"><\/span>An\nOverview of Patent<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Patent is an imperative type of <strong>Intellectual Property (IP<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Intellectual_property\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup><strong>)<\/strong> that allows owners sole rights to limit the sale, use or marketing of their invention. In simple words, Patents offer control to the inventor for the operation of the product in the market for a particular period. A Patent has different benefits such as:<\/p>\n\n\n\n<ul><li>Patents stop others from using\nan invention, thereby keeping challengers at bay;<\/li><li>Patenting aids the inventor in\nmaking money by licensing the Patent to others for their use or sale with\nanother asset.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Patents\"><\/span>Different Types of Patents<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There\nare three different types of Patents, and you can check the same below:<\/p>\n\n\n\n<ol><li><strong><em>Design Patents<\/em><\/strong>: Allowed to safeguard the distinct appearance or design of manufactured objects like the complete design of the thing or the surface ornamentation.<\/li><li><strong><em>Utility Patents<\/em><\/strong>: The most ordinary type of Patent, these are allowed to chemicals, new machines, and processes.<\/li><li><strong><em>Plant Patents<\/em><\/strong>: Allowed for the invention and asexual reproduction of new and unique plant varieties, consisting of hybrids (the meaning of asexual reproduction) is reproduced by means other than from seeds like by rooting or grafting or cuttings).<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fundraising_for_Start-ups\"><\/span>Fundraising\nfor Start-ups <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the main reasons an inventor has to get <a href=\"https:\/\/swaritadvisors.com\/patent-registration\" class=\"text-primary\"><strong>Patent Registration<\/strong><\/a> because it&#8217;s a vital source for creating revenue, and as such, it will more helpful in introducing the invention to the market without the fear of violation. Patents are considered to be an essential source of fundraising on account of the following reasons:<\/p>\n\n\n\n<ul><li>It makes sure that there is no opponent\ninfringement;<\/li><li>It makes sure a continued circulation\nof revenues in the form of profits;<\/li><li>Moreover, the priority dates will\nmake sure that Patents are offered in overseas countries as well. Which is a\nplus sign for the start-up invention having the market potential abroad;<\/li><li>Further, the Government scheme\nto promote inventors to file for Patents. They also deliver attractive tax\nrebates and quick processing of documents;<\/li><li>An invention that has been\npatented already will attract investors huge time as it represents that the\ninvention has an encouraging future, thereby obtaining the investors&#8217; trust;<\/li><li>Assisting a Patent will protect\nthe invention position in the international market faster and sooner. As the\nallowance of the Patent will boost its creation.<\/li><\/ul>\n\n\n\n<p>An\napplication of Provisional Patent will work for twelve months or a year within\nor after which one has to file a complete Patent Provisional Specification\nwithout which the application of Provisional Patent will be considered abandoned.\nThe specifications of Provisional Patent given in such provisional application\nwill not be removed after complete patent filing. But, it is cautioned that the\napplication has to be well-written and in agreement with business objectives.<\/p>\n\n\n\n<p>It\nmay obtain an increased continuum in the near future as provisional patenting\ncan deliver insights into product success. And the standing of the start-up\nafter one year and as to whether one must proceed with a full Patent. The\nbenefits also consist:<\/p>\n\n\n\n<ul><li>Costs of filing an application\nof Provisional Patent are low;<\/li><li>It gives an extra year of\nprotection;<\/li><li>It stops from the filing of any\nPatents subsequently concerning that field;<\/li><li>It serves as a trial for the\ninvention before it goes for a complete Patent in the market.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Stages_of_Fundraising_for_Start-ups\"><\/span>Different\nStages of Fundraising for Start-ups<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the four different stages of fundraising for start-ups:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"602\" height=\"128\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/05\/image-32.png\" alt=\"Stages of Fundraising for Start-ups\" class=\"wp-image-5549\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/05\/image-32.png 602w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/05\/image-32-300x64.png 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/figure><\/div>\n\n\n\n<ol><li><strong><em>Seed Funding<\/em><\/strong>:\nYou may or may not have prototypes; however, you are operating towards\nimproving your products to fundraise;<\/li><li><strong><em>Series A<\/em><\/strong>:\nYour product or services has been improved; however, you need to encourage it\nin the market for awareness and create public demand;<\/li><li><strong><em>Series B<\/em><\/strong>:\nYou have obtained credibility within the industry, however in order to grow\nmore, you need to broaden your operation;<\/li><li><strong><em>Series C<\/em><\/strong>:\nYou look at ways to create or innovate and improve your products to capture new\nmarkets.&nbsp; You may also idea for an IPO.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is crucial to know that it is possible to fundraising for start-ups through Patents; however, only after protecting it, which, otherwise will be subjected to infringement. An invention can be sold, and enormous profits can be achieved but only for the short term. However, Patenting is means of creating revenues for years to come in the longer run. The inventor can always license the Patent to those who are eager to use the invention, and in that way, the inventor shall receive royalties with every usage of the product.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/patent-compulsory-licensing\/\">What is the Concept of Patent Compulsory Licensing?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sometimes, start-ups may run out of money and have not enough money to run the business since they face an insufficiency of finance more often, which may harm their upcoming prospects. Hence, it is generally desirable for start-ups to first make sure the finance availability, upon which rests of all other concerns of an organisation. [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":5554,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[55],"tags":[663],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/5546"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=5546"}],"version-history":[{"count":20,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/5546\/revisions"}],"predecessor-version":[{"id":5568,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/5546\/revisions\/5568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/5554"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=5546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=5546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=5546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}