Patents are a potential source for raising funds for startups, especially when they are struggling to attract investors due to global economic slowdown. Against this backdrop, five companies from the technology, media, and telecom (TMT) sector feature in the list of top 10 startups due to their superior patent quality and innovation score, reveals the Startup Companies Scorecard on Disruptor Intelligence Center by GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Patent Analytics Database shows that most of the TMT startups focus on smart wearables, the artificial intelligence of things (AIoT), digital out-of-home (DOOH), metaverse, robots, and quantum computing.

Apoorva Bajaj, Practice Head at GlobalData, comments: “The TMT sector has built the networks and infrastructure necessary for smart gadgets to enable the current level of worldwide connectivity, which has sparked startup interest in the field. In addition, following nearly two years of a pandemic, people and businesses became more reliant on technologies like IoT, 5G, augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) to create immense opportunities for startups. This has led to the growing ecosystem of innovative and financially successful startups in the sector.”

Darshana Naranje, Senior Analyst at GlobalData, comments: “GlobalData’s Startup Companies Scorecard model, which uses patents as signals to establish startup value, benefits the customers in the acquisition and financing of businesses. The rise of the startup patent activity can be due to the government initiatives and the expedited patent approval processes, which eventually boost their likelihood of going public.”

GlobalData’s Startup Companies Scorecard model highlights the top 10 predicted unicorn startups with patent portfolio strengths greater than 500, a minimum funding requirement of $5 million, and the most recent funding raised on or after 1 January 2019.

China-based startup Huaqin leads the list in terms of patent activity, with approximately 800 filings and 900 grants. Virtual reality, wearable technology, industrial automation, and cybersecurity make up the majority of the company’s patents. Nearly all its patent applications are filed in China.

US-based startup Degree and the UK-based startup Ultrahaptics have most of their patents on industrial automation, space system, robotics, context-aware computing, wearables, and virtual reality. Degree has most of its patents filed in Europe, Australia, and Argentina while Ultrahaptics is active in non-European regions such as the US, Israel, and China.

Canada-based startup D-Wave Systems and US-based startup Brain Corp have their research focus on quantum computing, nanotechnology, artificial intelligence, medical IoT, robotics, and digitalization. Most of the patents of D-Wave are filed in the US, World Intellectual Property Organization, and Europe while Brain Corp has protection in multiple geographies including the US, Europe, and China.

Naranje concludes: “The TMT sector is still dealing with issues such as evolving consumer needs, constantly improving technology, and an expanding digital supply chain due to technologies such as IoT, 5G, and the metaverse. To adapt to the change, telecom operators around the world are engaging with startups to benefit from their agility, execution speed, and disruptive power. It will be fascinating to see how the telco startups lead the industry in innovation through a combination of efficiency improvements, productivity boosts, digitization projects, and structural changes (like network sharing).”