Patent the Boring Stuff

Patents aren't just for cutting-edge innovations, says a leading patent lawyer. In fact, the most lucrative patents are often for mundane, humdrum things—and you might be sitting On Some.

- FRANCES DODDS

Here's the most important question a company can ask, according to a leading patent attorney: Do we anticipate others will also use this in the future? This question is helpful because it reframes the way we think about patents, which can unlock many millions of dollars.

"Companies looking to achieve the greatest success understand that patents are their greatest asset," says Keegan Caldwell, founder of Caldwell, a corporate law firm that specializes in patents and intellectual property.

According to new data from PitchBook, there's a compelling connection between patents and earnings.

For example, between 2011 and 2020, in the pre-money stage, companies with patents received 93.2% higher valuations than those without. When companies with patents are acquired, their median exit value is 154.9% higher. Between 2011 and 2022, VC exits from companies with patents accounted for 78.6% of profits-despite making up just 24.1% of the companies those VCs invested in. And patent-seeking companies go public five times more than those without.