An EUIPO’s 2025 study on Intellectual property rights and firm performance in the European Union (Firm-level analysis report, January 2025) highlights the economic advantages for businesses, particularly small and medium-sized enterprises (SMEs) and micro-enterprises, that own IPRs. These findings are highly relevant for SMEs seeking crowdfunding, offering strategies for project owners and guidance for investors.
Why Intellectual Property Matters for SMEs
The study underscores that IPR ownership directly impacts revenue generation, employment growth, and wage levels. For SMEs looking to raise funds via crowdfunding, a strong IP portfolio can enhance credibility, attract investment, and provide a competitive edge. Investors should, in turn, view IPRs as a positive indicator of a company’s potential for success, ensuring they assess the value and impact of these rights during due diligence.
By strategically managing and leveraging intellectual property, SMEs and micro-enterprises can strengthen their fundraising prospects and improve overall business performance, benefiting both project owners and investors. Below are some key findings from the EUIPO Study:
- Companies with IPRs generate 23.8% more revenue per employee than those without. When adjusted for industry, size, and location, this advantage rises to 41%, with SMEs seeing a notable 44% increase.
- Firms holding IPRs pay 22% higher wages on average.
- While nearly 50% of large companies hold IPRs, only around 10% of SMEs do.
- SMEs with IPRs generate higher revenue, create more jobs, and offer better compensation.
These insights demonstrate how IPR ownership enhances financial performance and competitiveness—critical factors in attracting investment.
The Role of Crowdfunding Platforms in IP-Backed Investments
A high-quality crowdfunding platform may want to go beyond just facilitating fundraising. It may want to enhance investor confidence and project credibility through a structured due diligence process, with IP as a core risk assessment and valuation factor. For both investors and project owners, the support of any platform in evaluating and promiting high-quality investments is key. In some cases, IP is vital for this and any given platform understanding the value of IP therefore might:
- Conduct thorough due diligence on business models, financials, and IP strategies.
- Ensure IP risk evaluation is transparent and part of the project’s valuation process.
- Provide investor education on IP-backed business models and risks.
- Support project owners in developing IP strategies, securing trademarks, and connecting with IP valuation experts.
- Offer sector-specific benchmarking for industries where IP plays a critical role (e.g., deep tech, creative industries, SaaS).
- Adhere to ECSPR and DORA regulatory standards, ensuring compliance and governance best practices.
Assessing a Crowdfunding Platform
IP captures different level of assets, from trademarks, via designs to patents. A crowdfunding platform that prioritizes IP in its due diligence process might stand out as a provider of higher-quality investment opportunities. Platforms that integrate professional IP evaluation, risk transparency, and valuation guidance into their offering – for example by offering the qualities listed above – may offer investors and project owners better value. By benchmarking against IP-driven metrics, investors and founders can make more informed decisions, leading to better funding outcomes and stronger investment portfolios. For both investors and project owners, selecting the right crowdfunding platforms is essential. Lets outline short checklists for investors and project owners, so that they can better understand if a given platform does include relevant services related to the value of IP.
Checklist for Investors:
Investors should integrate IP assessment into their due diligence. Evaluating the scope, validity, and strategic value of a company’s IPRs helps determine potential success. Understanding how IPRs align with market trends and assessing a company’s IP management capabilities are crucial in making informed investment decisions.
- IP Due Diligence Integration – Does the platform assess startups’ IP portfolios?
- Transparency of Business Model – Are risk factors, including IP risks, clearly outlined?
- Track Record & Success Stories – Have IP-backed companies successfully raised funds and scaled?
- Investor Protection & Exit Strategies – What happens if an IP-backed startup fails?
- Regulatory Compliance – Does the platform meet ECSPR and DORA requirements?
Checklist for Project Owners:
A well-defined IP strategy strengthens an SME’s investment appeal. Protecting key intellectual assets through patents, trademarks, or designs enhances credibility. Project owners should actively highlight their IPRs in crowdfunding campaigns to showcase innovation and gain investor trust. Additionally, leveraging support programs like the 2025 SME Fund, which offers financial assistance for IP protection, can make a significant difference.
- Support for IP Strategy – Does the platform help identify and showcase your IP value?
- Quality of Investor Network – Does it attract investors who value IP-backed businesses – or does it work with sophisticated investors who do?
- Valuation Transparency – Can you effectively communicate your IP assets during your fundraising on the platform?
- Post-Funding Support – Does the platform offer mentorship or legal guidance on leveraging IP?
- Regulatory Compliance – Does the platform meet ECSPR and DORA requirements?