Published via Inbox: 2013-06-06 21:25:56
Even more to the point, investors seem to recognize that patents can take a big chunk of money out of early investment if startups file for a patent. Fortify Ventures managing director Jonathon Perrelli pointed out:||“When they’re raising $50,000 to pay for ramen and hosting services and their desks, $15,000 doesn’t have to go to intellectual property.”
My Two Cents
I have rarely heard of an early stage entrepreneur, especially in the world of Software, who uses their investor raised money to file patents. Filing patents with the investors money does not in 99.9% of the time even figure into the equation for a Seed Funded company. If the entrepreneur has them already, that's helpful and the patents might even tip the balance towards investing, but the operational side of the company is infinitely more valuable and important to build out.
