A patent is an asset — says this Texas-based intellectual property expert. Photo via Getty Images

Seeking patent protection can offer a substantial competitive advantage to startups looking to raise capital, especially during a venture capital downturn. Besides the protection patents can provide against intellectual property theft, they are also assets that can translate into expansion opportunities and additional revenue streams. These factors are important to institutions and individuals that invest in startups, as they may reduce downside risks to their investments and help outline a growth trajectory.

As Kathi Vidal, under secretary of commerce for intellectual property and director of the U.S. Patent and Trademark Office, said during a speech last year, “having a [patent] pending application helps secure funding, and it keeps potential competitors out of your space.”

The experience of Austin-based VoChill, a startup that created a new line of personal wine chillers, offers a case study of how filing for patent protection as early as possible can set up any startup for success, not only when seeking to raise capital, but also when working to expand its commercial relationships and distribution channels.

Filing for patents quickly gave VoChill’s founders a competitive advantage when approaching potential investors, as it demonstrated the management team’s high level of preparedness and business acumen. For investors who eventually committed capital to the startup, the filings signaled a safer bet on investing in VoChill.

There is plenty of evidence indicating that patents help attract capital and generate growth opportunities. A study conducted by professors from Harvard Business School and New York University’s Stern School of Business found that patent protection increased startups’ odds of receiving venture capital funding by 59 percent.

PitchBook data shows that startups seeking patents raise more capital than their non-patent-seeking peers. About 58 percent of venture capital went to startups with patents or with patent applications from 2011 to 2020, the research firm notes.

Patents can also help drive a startup’s expansion and grow sales. According to the National Bureau of Economic Research, or NBER, the approval of a startup’s first patent application increases its employee growth by 36 percent over the following five years. After five years, a new company with a patent increases its sales by a cumulative 80 percent more than companies that do not have a patent.

Patents can also increase a startup’s chances of obtaining distribution deals or, in the case of consumer products, partnerships with retailers. In VoChill’s experience, patent protection is a recurring theme in conversations not only with investors but also distributors and retailers.

Patents offer startups the possibility to pursue a licensing model as well. Licensing or selling the rights to a patent so that others may produce products or processes based on that patent can bring in ongoing revenue streams.

Down the line, having patent protection can lead to better exit opportunities, be it by going public or via a private divestiture.

According to the NBER, having patents more than doubles the probability that a startup is eventually listed on a stock exchange.

PitchBook data, meanwhile, shows that patent-seeking companies go public at a rate more than five times higher than non-patent-seeking companies (23.2 percent versus 4 percent).

In the case of exits via a sale of the startup, the median exit value for patent-holding companies is 154.9 percent higher than it is for companies without patents per year on average, according to PitchBook.

While the business case for seeking patent protection is clear, startups should keep a few considerations in mind when seeking to do so. Understanding time bars is crucial; for example, the United States generally allows only one year to file a patent application after an invention is publicly written about, shown, used, or otherwise disclosed, and overseas often no one-year “grace period exists.”

Still, other important predicates are finding out whether the innovation is truly new, identifying the most crucial components of a product or system, and thinking about what aspects competitors are likely to discover and copy.

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Chris Palermo is partner at Baker Botts where he specializes in intellectual property development. Lisa Pawlik is CEO of VoChill, a company that creates individual wine glass chillers.

A patent is an asset — one with a price associated with it when it comes to procuring a loan for your business. Photo via Getty Images

Rice research: What innovations can be used to borrow against?

Houston voices

For companies and leaders, patents represent important assets. They’re a marker of innovation and tech development. But patents do so much more than protect intellectual property. Firms increasingly deploy them as collateral to secure loans. Between 1995 and 2013, the number of patents pledged as loan collateral increased from about 10,000 to nearly 50,000. Forty percent of U.S. patenting firms have used patents as collateral.

However, patents are intangible assets, and their liquidity and liquidation value are difficult to assess. To evaluate an individual patent, lenders must consider the invention space to which the patent belongs. A patent’s linkage to prior inventions can provide important information for lenders, as the linkage affects the extent to which the patent under consideration may be redeployed and potentially purchased by other firms in the case of loan default.

Rice Business professor Yan Anthea Zhang examined more closely how this market operates and how both lenders and borrowers can make more informed decisions on which patents make appealing collateral. In their paper, “Which patents to use as loan collateral? The role of newness of patents' external technology linkage,” Zhang, who specializes in strategic management, and her co-authors studied the data on 107,180 U.S. semiconductor patents owned by 436 U.S. firms. The team focused on semiconductor patents because the semiconductor industry involves intensive innovation, which leads to many patent applications and grants. The market for semiconductor patents is an active and well-functioning market, given specialization in different stages of the innovation process and the growing technological market. Information on whether a patent was used as loan collateral came from the USPTO Patent Assignments Database.

Zhang and her colleagues argue that lenders prefer patents linked to prior inventions that are relatively new because these patents are riding on recent technology waves and are less likely to become obsolete. As a result, such patents are likely to remain deployable to other firms in the future. However, patents that are based upon too new prior inventions might not prove to be commercially viable and carry higher risk for lenders.

As a result of this research, Zhang and her colleagues found an inverted U-shape relationship to demonstrate the likelihood that a patent will be used as loan collateral. On one end, patents based upon the newest prior inventions, on the other, patents based upon mature prior inventions. The curve of the U-shape represents the sweet spot for patent collateral—the patents’ technological base is new enough to be relevant and competitive with other firms in its invention space, but not so new that it has yet to prove market success.

Zhang’s team also found that the impact of external linkage also varies depending on borrower attributes, especially the borrowers’ expertise in the invention space. If a borrower is a technological leader in the invention space, the market tends to give the borrower credit, and as a result, even if its patents are based upon very new prior inventions, its patents are still likely to be accepted as collateral.

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This article originally ran on Rice Business Wisdom and was based on research from Yan Anthea Zhang, the Fayez Sarofim Vanguard Professor of Management at Rice Business.

Doris Taylor from the Texas Heart Institute has been named to the National Academy of Inventors.

Houston inventor receives national recognition for leading innovation

Leading lady

A Houston inventor is being recognized for her leadership within cardiovascular regenerative medicine. Doris A. Taylor from the Texas Heart Institute has been named among the National Academy of Inventors' 54 academic inventors to the spring 2019 class of NAI Senior Members.

Taylor's work involves finding alternatives for the current practices for organ transplants, including the whole organ decellularization/recellularization technologies she developed in 2008.

"Dr. Taylor's work has revolutionized the field by making it possible to bioengineer scaffolds that effectively mimic natural organs," says Dr. Darren Woodside, Texas Heart Institute's vice president for research, in a news release. "The three U.S. patents she currently holds have spun off 28 international patents, stimulating the worldwide tissue engineering industry. Her current research team is refining these technologies and developing others, potentially revolutionizing the transplantation industry and eliminating wait lists for life-saving transplantable organs."

NAI selects its honorees by identifying their impact on the welfare of society, the release reads, and have proven success with their patents, licensing, and commercialization.

NAI Senior Members are active faculty, scientists and administrators from its Member Institutions who have demonstrated remarkable innovation producing technologies that have brought, or aspire to bring, real impact on the welfare of society. They also have proven success in patents, licensing and commercialization.

An individual's nomination for the NAI Senior Member class by its supporting institution is a distinct honor and a significant way for the organization to publicly recognize its innovators on a national level.At their host institutions, Senior Members foster a spirit of innovation, while educating and mentoring the next generation of inventors.

The new class of NAI Senior Members includes representatives from 32 institutions. Texas A&M University has two researchers in the class — Robert Balog, an associate professor in the Department of Electrical and Computer Engineering, and Balakrishna Haridas, a professor of practice in the Department of Biomedical Engineering and executive director for technology commercialization and entrepreneurship for the Texas A&M Engineering Experiment Station.

This latest class of NAI Senior Members represents 32 research universities and government and non-profit research institutes. They are named inventors on over 860 issued U.S. patents. In February, two Houston inventors were named to the inaugural class of senior members.

"NAI Member Institutions support some of the most elite innovators on the horizon. With the NAI Senior Member award distinction, we are recognizing innovators that are rising stars in their fields," says Paul R. Sanberg, NAI president, in the release. "This new class is joining a prolific group of academic visionaries already defining tomorrow."

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13 Houston businesses appear on Time's best midsize companies of 2025

new report

A Houston-based engineering firm KBR tops the list of Texas businesses that appear on Time magazine and Statista’s new ranking of the country’s best midsize companies.

KBR holds down the No. 30 spot, earning a score of 91.53 out of 100. Time and Statista ranked companies based on employee satisfaction, revenue growth, and transparency about sustainability. All 500 companies on the list have annual revenue from $100 million to $10 billion.

According to the Great Place to Work organization, 87 percent of KBR employees rate the company as a great employer.

“At KBR, we do work that matters,” the company says on the Great Place to Work website. “From climate change to space exploration, from energy transition to national security, we are helping solve the great challenges of our time through the high-end, differentiated solutions we provide. In doing so, we’re striving to create a better, safer, more sustainable world.”

KBR recorded revenue of $7.7 billion in 2024, up 11 percent from the previous year.

The other 12 Houston-based companies that landed on the Time/Statista list are:

  • No. 141 Houston-based MRC Global. Score: 85.84
  • No. 168 Houston-based Comfort Systems USA. Score: 84.72
  • No. 175 Houston-based Crown Castle. Score: 84.51
  • No. 176 Houston-based National Oilwell Varco. Score: 84.50
  • No. 234 Houston-based Kirby. Score: 82.48
  • No. 266 Houston-based Nabor Industries. Score: 81.59
  • No. 296 Houston-based Archrock. Score: 80.17
  • No. 327 Houston-based Superior Energy Services. Score: 79.38
  • No. 332 Kingwood-based Insperity. Score: 79.15
  • No. 359 Houston-based CenterPoint Energy. Score: 78.02
  • No. 461 Houston-based Oceaneering. Score: 73.87
  • No. 485 Houston-based Skyward Specialty Insurance. Score: 73.15

Additional Texas companies on the list include:

  • No. 95 Austin-based Natera. Score: 87.26
  • No. 199 Plano-based Tyler Technologies. Score: 86.49
  • No. 139 McKinney-based Globe Life. Score: 85.88
  • No. 140 Dallas-based Trinity Industries. Score: 85.87
  • No. 149 Southlake-based Sabre. Score: 85.58
  • No. 223 Dallas-based Brinker International. Score: 82.87
  • No. 226 Irving-based Darling Ingredients. Score: 82.86
  • No. 256 Dallas-based Copart. Score: 81.78
  • No. 276 Coppell-based Brink’s. Score: 80.90
  • No. 279 Dallas-based Topgolf. Score: 80.79
  • No. 294 Richardson-based Lennox. Score: 80.22
  • No. 308 Dallas-based Primoris Services. Score: 79.96
  • No. 322 Dallas-based Wingstop Restaurants. Score: 79.49
  • No. 335 Fort Worth-based Omnicell. Score: 78.95
  • No. 337 Plano-based Cinemark. Score: 78.91
  • No. 345 Dallas-based Dave & Buster’s. Score: 78.64
  • No. 349 Dallas-based ATI. Score: 78.44
  • No. 385 Frisco-based Addus HomeCare. Score: 76.86
  • No. 414 New Braunfels-based Rush Enterprises. Score: 75.75
  • No. 431 Dallas-based Comerica Bank. Score: 75.20
  • No. 439 Austin-based Q2 Software. Score: 74.85
  • No. 458 San Antonio-based Frost Bank. Score: 73.94
  • No. 475 Fort Worth-based FirstCash. Score: 73.39
  • No. 498 Irving-based Nexstar Broadcasting Group. Score: 72.71

Texas ranks as No. 1 most financially distressed state, says new report

Money Woes

Experiencing financial strife is a nightmare of many Americans, but it appears to be a looming reality for Texans, according to a just-released WalletHub study. It names Texas the No. 1 most "financially distressed" state in America.

To determine the states with the most financially distressed residents, WalletHub compared all 50 states across nine metrics in six major categories, such as average credit scores, the share of people with "accounts in distress" (meaning an account that's in forbearance or has deferred payments), the one-year change in bankruptcy filings from March 2024, and search interest indexes for "debt" and "loans."

Joining Texas among the top five most distressed states are Florida (No. 2), Louisiana (No. 3), Nevada (No. 4), and South Carolina (No. 5).

Texas' new ranking as the most financially distressed state in 2025 may be unexpected, WalletHub says, considering the state has a "bigger GDP than most countries" and still has one of the top 10 best economies in the nation (even though that ranking is also lower than it was in previous years).

Even so, Texas residents are stretching themselves very thin financially this year. Texans had the ninth lowest average credit scores nationwide during the first quarter of 2025, the study found, and Texans had the sixth-highest increase in non-business-related bankruptcy filings over the last year, toppling 22 percent.

"Texas also had the third-highest number of accounts in forbearance or with deferred payments per person, and the seventh-highest share of people with these distressed accounts, at 7.1 percent," the report said.

This is where Texas ranked across the study's six key dimensions, where No. 1 means "most distressed:"

  • No. 5 – "Loans" search interest index rank
  • No. 6 – Change in bankruptcy filings from March 2024 to March 2025 rank
  • No. 7 – Average number of accounts in distress rank
  • No. 8 – People with accounts in distress rank
  • No. 13 – Credit score rank and “debt” search interest index rank
Examining these financial factors on the state level is important for understanding how Americans are faring with economic issues like inflation, unemployment rates, or natural disasters, according to WalletHub analyst Chip Lupo.


"When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state," Lupo said.

On the other side of the spectrum, states like Hawaii (No. 50), Vermont (No. 49), and Alaska (No. 48) are the least financially distressed states in America.

The top 10 states with the most people in financial distress in 2025 are:

  • No. 1 – Texas
  • No. 2 – Florida
  • No. 3 – Louisiana
  • No. 4 – Nevada
  • No. 5 – South Carolina
  • No. 6 – Oklahoma
  • No. 7 – North Carolina
  • No. 8 – Mississippi
  • No. 9 – Kentucky
  • No. 10 – Alabama
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A version of this article originally appeared on CultureMap.com.

Digital Health Institute's new exec director aims to lead innovation and commercialization efforts

new hire

Though our existences have become deeply entangled with technology, our health has been slower to catch up. The creation late last year of the Digital Health Institute was a major step into the future for both Rice University and Houston Methodist, for whom the institute is a joint venture.

The latest news for the Digital Health Institute is the appointment of Pothik Chatterjee to the role of executive director.

“The Digital Health Institute’s collaborative model is uniquely powerful,” Chatterjee told Rice University’s office of media relations. “By bringing together clinicians, engineers and entrepreneurs, we’re building an ecosystem designed to transform how care is delivered and experienced.”

Chatterjee’s role is to help grow the collaboration between the institutions, but the Digital Health Institute already boasts more than 20 active projects, each of which pairs Rice faculty and Methodist clinicians.

“Research is great, but what we really want at the Digital Health Institute is to translate those research findings into products and services that can be used at the patient's bedside,” Chatterjee explained to InnovationMap.

Once the research is in place, it’s up to Chatterjee to find commercial opportunities within the research portfolio. Those include everything from hospital-grade medical imaging wearables to the creation of digital twins for patients to help better treat them.

“As we move from vision to execution, Pothik’s expertise will be essential in helping us strengthen the institutional alignment needed to deliver at scale,” Dr. Khurram Nasir, Methodist’s William A. Zoghbi Centennial Chair in Cardiovascular Medicine and division chief of cardiovascular prevention and wellness, told Rice. “From my vantage point of a health system, the real value lies not just in innovation, but in implementation.”

Nasir’s co-founder is Ashutosh Sabharwal, Rice’s Ernest Dell Butcher Professor of Engineering and professor of electrical and computer engineering.

“The Digital Health Institute is a key step toward advancing health and health care for the benefit of humanity,” Sabharwal said. “We’re thrilled to welcome Pothik to our growing team. His background in health care innovation, research administration and venture investing will be instrumental in translating cutting-edge research into impactful digital health solutions. From leading innovation strategy and forging strong partnerships to driving fundraising and grant development, his leadership will help shape the institute’s long-term success.”

Though Chatterjee has previously worked around the country, including in Boston and Baltimore, he says he believes Houston is uniquely positioned to thrive in the digital health space.

“Houston is the best place to do it, because we have Rice and Houston Methodist,” he told InnovationMap. “[People] want to help keep that innovation in Houston, not just send it off to Silicon Valley or New York or Boston. There seems to be a lot of appetite from the philanthropic community to have homegrown Houston digital health innovation.”