Patlytics Secures $14M Investment to Revolutionize Patent Analytics Platform
In today’s rapidly evolving technological landscape, the role of patents has become increasingly critical, especially with the rise of artificial intelligence (AI). The influx of innovative solutions in this space is exemplified by New York-based startup Patlytics, which has introduced an AI-driven patent analytics platform designed to enhance patent workflows for corporations, IP professionals, and law firms.
Patlytics Secures Funding to Enhance AI-Driven Patent Solutions
On Monday, Patlytics, backed by Google, announced a successful closure of a $14 million Series A funding round. This round was led by Next47 and saw participation from notable investors such as Google’s Gradient, 8VC, Alumni Ventures, Liquid 2 Ventures, and Myriad Venture Partners. With this latest financing, the total capital raised by Patlytics has reached $21 million, following a seed round completed just nine months prior in April.
Founders’ Vision for Transforming Patent Workflows
Co-founders Paul Lee (CEO) and Arthur Jen (CTO) established Patlytics in January 2024. Lee, a former venture capitalist, recognized the outdated practices employed in the IP sector, where patent discovery, analysis, and reporting remain labor-intensive and time-consuming. Jen, who previously managed patent filings at the crypto wallet company Magic, understood these challenges intimately.
Revolutionizing Legal Tech with AI
In an exclusive interview with TechCrunch, Lee reflected on the common misconceptions surrounding legal technology. He stated, “Historically, there were many negative connotations and premises around selling technology to lawyers, but AI has truly changed these premises.” This shift highlights a significant demand within the IP market for advanced technological solutions that allow patent professionals to focus on higher-value tasks.
Innovative Features of Patlytics’ AI Platform
Patlytics employs custom-built large language models (LLMs) and a generative AI engine specifically designed for various IP-related tasks, including:
- Patent application drafting
- Invention disclosures
- Invalidity and infringement analysis
- Standard Essential Patents (SEPs) analysis
- IP asset portfolio management
Impressive Growth Metrics
Within just six months, Patlytics has reported a remarkable 20x increase in annual recurring revenue (ARR) and an 18x expansion in its customer base. The company has also achieved a consistent 300% month-over-month growth rate. While the exact customer count remains undisclosed, approximately 50% of its clientele consists of law firms, with the remainder spanning various industries such as semiconductors, biotechnology, and pharmaceuticals. Patlytics has also expanded its services to clients in South Korea and Japan, launching its first pilot product in London and Germany.
Clientele and Future Plans
Some of the notable clients of Patlytics include:
- Abnormal Security
- Koch Disruptive Technologies
- Quinn Emanuel Urquhart & Sullivan
- Richardson Oliver
- Reichman Jorgensen Lehman & Feldberg
- Xerox
- Young Basile
With the new funding, Patlytics aims to scale its sales efforts and invest further in product development. This strategy includes the hiring of additional engineers and the expansion of various product modules. Since April 2024, the startup has doubled its workforce from 11 employees to meet growing customer demand. Additionally, Eric Lin, an IP litigator with over a decade of experience, will join the leadership team as the new vice president of strategy.
Streamlining Patent Conflict Resolution
Bob Steinberg, a member of Patlytics’ advisory board and chair of the Patent Trial and Appeal Board (PTAB) Practice at Latham & Watkins, emphasized the platform’s capacity to automate technical discovery. “Patlytics can automatically conduct technical discovery, generating detailed claim charts for validity and infringement purposes that would traditionally require expensive experts and countless attorney hours,” he stated. This capability aims to provide cost-effective access to critical information, thereby facilitating smoother negotiations, transactions, settlements, and more efficient litigation processes.
As AI continues to reshape the landscape of intellectual property, platforms like Patlytics are at the forefront of this transformation, ensuring that patent professionals are equipped with the tools they need to succeed.
