Smart IP Strategy: How to patent for VC attention?
Startups often underestimate the power of a well-crafted patent when pitching to investors. But for venture capitalists (VCs), a strong IP portfolio isn’t just a legal asset — it’s a signal. It tells them you’re solving a hard problem, you own your innovation, and you're building with long-term defensibility.
So, how do you turn your patent strategy into a fundraising magnet?
1. Think Business, Not Just Protection
VCs invest in market potential, not legal complexity.
A patent that's packed with legal jargon but lacks a story about why the invention matters won't land. Your claims should align with your product roadmap and your market differentiators.
Tip: Start with the "Why now?" of your innovation. Build your patent to reflect that urgency and uniqueness.
2. Draft for Clarity, Not Just Coverage
Impress with how well your IP explains your tech.
VCs aren't reading the claims — but their technical advisors might. A confusing or generic patent won't help. Clear enablement, sharp language, and tight figures = instant credibility. Further, it’s a skill and an art as well in terms of how to write to make it patentable.
Tip: Avoid jargon unless it's precise. Use flowcharts and block diagrams to support storytelling.
| BEFORE (AI Invention – Not Patentable) |
AFTER (Same AI Invention – rewritten to be Patentable) |
|---|---|
| Claim 1. A method of using an artificial neural network (ANN) comprising: | Claim 1. A method of using an artificial neural network (ANN) to detect malicious network packets comprising: |
| (a) receiving, at a computer, continuous training data | (a) training, by a computer, the ANN based on input data and a selected training algorithm to generate a trained ANN, wherein the selected training algorithm includes a backpropagation algorithm and a gradient descent algorithm |
| (b) discretizing, by the computer, the continuous training data to generate input data | (b) detecting one or more anomalies in network traffic using the trained ANN |
| (c) training, by the computer, the ANN based on the input data and a selected training algorithm to generate a trained ANN, wherein the selected training algorithm includes a backpropagation algorithm and a gradient descent algorithm | (c) determining at least one detected anomaly is associated with one or more malicious network packets |
| (d) detecting one or more anomalies in a data set using the trained ANN | (d) detecting a source address associated with the one or more malicious network packets in real time |
| (e) analyzing the one or more detected anomalies using the trained ANN to generate anomaly data, and | (e) dropping the one or more malicious network packets in real time, and |
| (f) outputting the anomaly data from the trained ANN. | (f) blocking future traffic from the source address. |
3. Show Portfolio Thinking Early
One patent is good. A strategy is better
Even if you're starting with a single filing, show the potential for a broader IP moat. Highlight how other features or upcoming modules could lead to follow-on filings.
Tip: Include a roadmap-style slide in your deck: "Current Patent + 2 Future Filings Planned."
4. File Smart, File Early
Timing matters. So does jurisdiction
File before public disclosure, and if you're targeting global markets, consider US or EP filings early. The perception of "global IP" adds serious weight in investor conversations.
Tip: Use provisional filings smartly. File one aligned with your MVP and another before fundraising.
5. Talk About IP in the Right Language
Don’t say: "We have a patent."
Say: "We’ve protected the algorithm that makes our product 3x faster than competitors — and it's granted in the US."
Make your IP a business asset, not a legal ornament.
Tip: Practice explaining your patent in one sentence that makes a VC say, "Oh, that's valuable."
Final Thought:
Patents won’t raise your round for you. But they will:
In Short: A good patent says, "This founder is serious."
Want help creating investor-grade IP? Book a free discovery call with SITABIENCE IP.
