Many food-tech start-ups we speak with say they're not too concerned about intellectual property. However, we always emphasize its importance. Here are five key reasons why we believe it deserves their attention.
1. Protecting Innovation and Recipes
The goal of many food-tech start-ups is to commercialise innovative food ingredients, recipes, formulations, or processes. IP tools, like patents, design rights, and trade secrets help prevent competitors from copying or reverse-engineering these innovations. For example, a start-up developing an innovative extrusion process for plant-based proteins can use patent filings to protect both the process and its products.
Food-tech start-ups that choose to rely on trade secrets should ensure they’ve taken reasonable steps to maintain confidentiality, such as using NDAs and limiting internal access.
2. Attracting Investment and Strategic Partnerships
Investors in the food-tech space often view IP as a sign of defensibility and technological edge. A robust IP portfolio can enhance a company’s valuation and attractiveness to venture capitalists, corporate VCs, and strategic partners, such as ingredient suppliers or food conglomerates. For example, a start-up that has protected its cultivated fat tissue technology with patent applications may hold greater leverage in negotiations with potential investors or partners.
3. Creating Licensing and Revenue Opportunities
IP enables start-ups to license core technologies—such as cell culture media, scaffolding materials, or bioreactor designs—to other players in the value chain. This opens up non-dilutive revenue streams and IP-driven business models. For example, patents protecting a cost-effective, serum-free growth medium could be licensed to multiple cultured meat companies.
4. Securing Freedom to Operate (FTO)
Food-tech start-ups must ensure they have freedom to operate so that they can commercialize their products without infringing other people’s IP rights. Conducting FTO searches and ongoing IP monitoring is essential—even if the start-up decides not to pursue protection itself. Being unaware of third-party rights can lead to costly litigation or forced redesigns later.
5. Enhancing Value in M&A and Exit Scenarios
In a fast-growing sector like food-tech, start-ups with a strong IP position are more attractive acquisition or IPO targets. Buyers and investors prioritize IP-rich companies because they offer exclusivity and long-term value.
Recent acquisitions in areas like cultivated meat and precision fermentation have often hinged on the strength of the target’s proprietary IP.
To find out more, contact our specialists here.
