Investor map of the European innovation ecosystem: Yezhima explains the latest EPO research for you

The European Patent Office (EPO) recently released an important study that helps startups better identify suitable investors by mapping technology investors and introducing new indicators to promote the prosperity of the European innovation ecosystem. Page Code provides you with an in-depth interpretation of this study and explores its implications for startups and investors.

The EPO study "Mapping investors for European innovators" reveals the challenges faced by European startups in accessing public and private funding and compares it with the US market. The study found that European startups face a significant financing gap in the process of turning innovation into scaled enterprises, causing many entrepreneurs to choose to go to markets such as the United States to seek opportunities. 88% of European investors' portfolios include companies with patent applications, but only 8% of investors have more than half of their companies holding patents, indicating that there is still room for improvement in participation in patent technology startups. This study provides important insights into the European innovation ecosystem and also points startups in the direction of finding suitable investors.

Technology Investor Score (TIS): A new tool to identify investors

The EPO has introduced a new indicator, the Technology Investor Score (TIS) , which measures the proportion of companies in an investor's portfolio that have patent applications. The TIS value ranges from 0 to 1, with higher values indicating a higher focus on patented technologies. TIS provides start-ups with a new way to quantitatively assess investors.

• The highly granular nature of TIS makes it a powerful tool for identifying investors suitable for innovation financing.
• Global investor data: The EPO calculates TIS values for more than 14,000 investors in Europe and the United States, helping startups quickly identify target investors.

The study found that public investors play an integral role in Europe’s innovation ecosystem, driving technological progress alongside private investors.

• Public investors include the European Innovation Council (EIC), the European Investment Bank (EIB), and national innovation agencies such as Bpifrance in France and Innovate UK in the UK. These agencies usually have high TIS values and focus on supporting early-stage innovation projects.
• The low participation of European private investors in late-stage financing is in stark contrast to the US market, where private investors dominate late-stage financing and provide strong support for high-tech companies to scale up.

To help start-ups better use patents for financing, the EPO has launched a number of support tools and resources, such as:

• Deep Tech Finder: The updated tool adds new filters to help startups find the most suitable investors based on criteria such as financing stage, country or technology field.
• Financing Innovation: The EPO has launched a dedicated website with a wealth of resources to help start-ups and investors use patents to drive innovation financing.

If you have any questions about patent layout, financing strategy or the use of EPO tools, please contact us or scan the QR code below to consult our professional consultants.