Built a novel ML algorithm for supply chain optimization. Patent attorney quoted $15-20K for a utility patent application. We're pre-seed with limited runway. Is this worth it? Will VCs care?
Depends on your defensibility strategy. Consider:
Reasons to file: Creates barrier to entry, can be asset in M&A, some VCs view patents favorably (especially in enterprise/deep tech), provisional filing is cheaper ($2-3K) and buys 12 months.
Reasons to wait: Software patents are harder to enforce post-Alice, execution matters more than patents in most SaaS, $15K is significant at pre-seed, patent won't stop well-funded competitor.
Common approach: File provisional patent ($2-3K) to lock in priority date. Decide on full utility patent after you've raised or have revenue.
As someone who reviews deals: patents are a nice-to-have, not a must-have for software companies. We care more about: Can you execute? Is there product-market fit? Can this scale?
Exception: If you're in a space where IP is core to defensibility (biotech, hardware, deep tech), patents matter a lot more. For SaaS/ML, less so.
Filed 3 software patents across two startups. Never enforced any of them. Never got sued. The patents were useful for: (1) impressing enterprise procurement teams who checked a box, (2) acquisition due diligence where they valued the IP.
If you're building to sell to enterprise or get acquired by big tech, might be worth it. If you're building for SMB customers, probably not.
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