• Patlytics raised $14 million in a Series A round led by Next47, bringing its total funding to $21 million.
  • The company has seen a 20x increase in ARR and an 18x expansion in its customer base within six months.

New York-based startup Patlytics has raised $14 million in a Series A round to further develop its AI-driven patent analytics platform. The round was led by Next47, with participation from existing investors, including Google’s Gradient, 8VC, Alumni Ventures, Liquid 2 Ventures, and Myriad Venture Partners. This brings Patlytics’ total funding to $21 million, following its seed round in April 2024.

Patlytics, founded in January 2024 by CEO Paul Lee and CTO Arthur Jen, aims to streamline patent workflows for corporations, IP professionals, and law firms. The platform leverages AI to handle patent discovery, analytics, comparison, prosecution, and litigation, addressing inefficiencies in traditional patent management.

Lee, a former venture capitalist, identified that IP companies relied on outdated methods, while Jen, having managed patents at crypto wallet company Magic, experienced these challenges firsthand.

“Patlytics has an interesting genesis because I don’t have a legal background, and I initially held a lot of misconceptions around legal tech,” Lee said.
“Historically, there were many negative connotations and premises around selling technology to lawyers, but AI has truly changed these premises… What we’ve seen in the IP market is that people want better technology; there is a big push for higher-value work using LLMs, and most importantly, patent professionals crave quality.”

The company’s AI models support various functions, including patent application drafting, invention disclosures, invalidity analysis, infringement detection, and IP portfolio management.

Over the past six months, Patlytics has seen a 20x increase in ARR and an 18x expansion in its customer base, with 50% of its clients being law firms and the rest corporate entities in industries such as semiconductors, pharmaceuticals, and biotech.

With its latest funding, Patlytics plans to scale sales, enhance product development, and expand globally. The company has doubled its workforce since April 2024 and appointed Eric Lin as vice president of strategy to drive its next growth phase.

Edited by Harshajit Sarmah