Key Takeaways

  • Finding patent investors requires thorough research, a well-crafted business plan, and legal protection for your invention.
  • Types of investors include angel investors, venture capital firms, corporate investors, crowdfunding, and government grants.
  • Pitching your invention effectively involves preparing a detailed presentation, demonstrating market potential, and securing intellectual property rights.
  • Valuation of patents plays a crucial role in attracting investors, as investors want to see clear revenue potential and legal protection.
  • Alternative funding options such as licensing agreements, incubators, and accelerators can provide additional opportunities beyond traditional investors.
  • UpCounsel connects inventors with experienced patent attorneys to help secure and protect intellectual property.

Patent investors provide funding for inventors so that they can turn their idea into a reality. Finding an investor, however, requires having an original idea and the ability to pitch this idea successfully.

Finding Investors for Your Invention

If you have an idea for an invention but lack the funds to develop it, you could look for patent investors. Before you can find an investor, however, you need to take several steps to prepare for your search. The first and most important step in finding investors for your potential patent is searching the United States Patent and Trademark Office (USPTO) to find out if your invention idea is original.

Once you're sure that your invention is unique from ideas that have already been patented, you will need to think about what you'll be asking of your investors. While you'll want them to provide funding, it's equally important to have a clear end goal for your invention.

To prevent your idea from being stolen by a potential investor, you should file a patent application. Correctly filing for a patent will give you legal protections for your invention, including the ability to prevent other people from using your idea without your permission. Marketing is a big part of finding patent investors, so it's vital that you have a strategy for making your invention attractive to possible sources of funding.

A variety of funding sources are available that investors can take advantage of, including:

When you're developing a strategy for marketing your invention to investors, you should be aware that you will also need to market yourself. Investors will typically only give their money to an inventor with whom they believe they'll have a good working relationship, so you need to present yourself well when pitching your invention.

The best way to tell investors about your ideas is by using a business plan. A business plan can help you organize a strategy for your invention and can help investors see why they should provide you with funding. You need to show potential investors why your invention has value and your plan for marketing your invention to the public once it has been created.

Understanding the Role of Patent Investors

Patent investors provide funding to help inventors develop, patent, and commercialize their inventions. Unlike general business investors, patent investors focus specifically on intellectual property (IP) and innovation-driven businesses. Their goal is to invest in patents with strong market potential, ensuring the invention can generate substantial revenue.

There are different types of patent investors, including:

  • Angel Investors – Individual investors who fund early-stage inventors, typically in exchange for equity.
  • Venture Capital Firms – These firms invest in scalable inventions with high commercial potential.
  • Corporate Investors – Companies looking to acquire new technologies for their industry.
  • Crowdfunding – Platforms where multiple investors contribute to a project.
  • Government Grants & Incentives – Programs that support research and innovation.

How to Attract Patent Investors

To attract patent investors, inventors must demonstrate a combination of market viability, intellectual property protection, and business potential. Some key steps to improve investor interest include:

  1. Patent Search & Filing – Before approaching investors, conduct a patent search to confirm the uniqueness of your invention and file a patent application.
  2. Market Research – Provide data on market demand, potential competitors, and the scalability of your invention.
  3. Develop a Prototype – Investors are more likely to fund tangible concepts rather than just ideas.
  4. Business Plan – Outline your strategy, target audience, revenue potential, and exit strategy.
  5. Networking & Outreach – Attend industry conferences, join innovation hubs, and pitch to investment groups.

Pitching and Protecting Your Invention

Finding investors is a key way to finance the development of your invention. Some inventors may seek investors with only an idea, meaning they have not actually started the process of making their invention, which can include:

  • Filing a patent application
  • Engineering the invention
  • Developing a prototype
  • Creating a proof of concept

While investors can help with the costs of developing an idea, inventors also need to be sure that they protect their idea from theft.

For instance, if you haven't taken steps to protect your idea, an investor could listen to your pitch, steal your idea, and then create your invention on their own. You could request that investors sign a nondisclosure agreement, but they are unlikely to do so before hearing some basic information about your invention.

If you want to protect your intellectual property, you should either wait to pitch your idea until it has gained patent pending status or insist on a nondisclosure agreement. Waiting to pitch until you have established patent pendency for your invention is the best way to protect your right to your idea.

Valuing Your Patent for Investment

Investors evaluate patents based on their financial potential. Before pitching, it’s essential to understand how your patent will be valued. Key valuation factors include:

  • Market Size & Revenue Potential – Investors assess the commercial viability of the invention.
  • Patent Strength & Scope – Broad patents with strong legal protection are more attractive.
  • Competitive Landscape – A lack of direct competitors increases investment appeal.
  • Licensing & Monetization Potential – The ability to generate revenue through licensing agreements.
  • Legal & Regulatory Risks – Ensuring the patent does not face legal disputes.

Conducting a professional patent valuation can help position your invention as a strong investment opportunity.

You can establish patent pendency by filing either a provisional patent application or a nonprovisional patent application. Whichever type of application you choose, you'll need to include a variety of details about your invention, including its benefits and information about how it works. After patent pendency has been established, you can pitch your idea to investors without worrying that it will be stolen and commercialized. Because you were the first person to file the patent application, you will also receive first rights to the idea.

The drawback of this option for protecting your invention is that the cost of filing a patent application can be as high $20,000. If you're already struggling to fund your invention, it's likely that you don't have enough money to cover these patent costs.

Alternative Funding Options for Inventors

If traditional investors are not an option, inventors can explore alternative funding sources, including:

  • Licensing Agreements – Partnering with companies that will pay for the rights to use your patent.
  • Government Innovation Grants – Various grants and funding programs exist for research and development.
  • Incubators & Accelerators – Programs that provide mentorship, networking, and seed funding.
  • Bank Loans & Microloans – Some financial institutions offer business loans for patent commercialization.
  • Patent Sales – Selling the patent outright to an interested party.

Evaluate each option based on your business goals and timeline.

FAQs

1. What types of investors fund patent-based inventions?

Patent investors include angel investors, venture capitalists, corporate investors, and crowdfunding participants. Some inventors also seek government grants or licensing deals.

2. How can I protect my idea when pitching to investors?

To prevent idea theft, file a provisional or non-provisional patent application, use nondisclosure agreements (NDAs) selectively, and avoid revealing key technical details too early.

3. What do patent investors look for in an invention?

Investors assess market demand, the strength of the patent, competitive advantage, commercialization potential, and return on investment (ROI).

4. Can I get funding before filing for a patent?

While possible, it’s risky. Most investors prefer to fund inventions with legal protection, so filing at least a provisional patent application is advisable before seeking investment.

5. Where can I find legal help for patent investment deals?

UpCounsel connects inventors with top-rated patent attorneys who can help with IP protection, investment contracts, and licensing agreements.

If you need help finding patent investors, you can post your legal needs on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.