What is the best patent strategy for early-stage startups

What I do recommend for start-ups is that they get some professional advice regarding IP at an early stage. As my colleagues point out in the other posts here, there are a range of options available. What is important is that your IP strategy fits in with the rest of your business plan - it is worth spending a few hundred dollars (or a bit more) on advice if that will help you get your timing and form of protection right to get you the best bang for your buck as things develop.

You can certainly start by filing one or more provisional applications. If your disclosures are truly decent, meaning, they truly disclose what your invention is and how it works, you can file it as a provisional application relatively cheaply - the filing fee for a small entity is $130.00. However, if your disclosure is not in good shape re really disclosing the invention, you will need to work on it because you will eventually have to file a non-provisional application in view of the fact that a provisional application never gets examined and never leads to a patent in and of itself - but if the provisional disclosure is not effectively complete and thorough, when you file your full-blown non-provisional application, if critical parts of the invention were not disclosed within the provisional application, your non-provisional application will not be accorded the priority filing date of your provisional application. If your technology is important, it is best to invest in having a good provisional application written.
Also, it depends where you are in the development stage - if your invention is complete, then you can file either a provisional or non-provisional application application - again, if your disclosure is good, you can probably get away with a provisional application and then use that disclosure to attract interest and funding. Or you can proceed directly toward a non-provisional. If your invention is at the prototype stage, you may want to file one or more provisional applications for the various improvements developed over time, then file a non-provisional application within one year from the filing date of your earliest provisional application. If you want to obtain foreign patents, you will need to, for example, file a PCT application also within the one year time frame from the filing date of the first provisional application.

Good question and likely to be on the minds of many other start-ups’ founders. Where to spend your money first (especially when the funds are very limited) to gain the most IP protection, is a difficult issues. And, as with (almost) any business-legal hybrid issue, there is no single correct or simple answer.
Patents give the most protection and a nod from potential investors. But obtaining a patent usually means spending thousands of dollars (in attorney fees) on prosecuting a patent application or drafting crappy one yourself (that will be examined by the investors as well as competitors), which may lead to a narrow and/or ineffective protection of the invention.
So, in alternative or as supplement to the patent application, there are several other ways to protect your bread and butter. If your invention is embedded into a software (app ect.), file for copyright registration. Invest in a good brand and get trademark registration. Make sure you execute a solid non-disclosure agreement (NDA) with anyone who touches your tech. Solid outsourcing, consulting employment agreements that protect confidentiality and vest (or assign) the IP to you are key. When you do get an investor they will examine and evaluate your startup based on all these variables, and not only on your patent portfolio. Of course it helps when your tech is great…

I just give some advice on patent from a point of view of a Chinese patent attorney and attorney at law. This might be a little bit different from that in U.S. However, if you would like to enter into China, it might be of some help.
1. Drafting
This is actually the most important thing for a startup.
First, this is the basis for the startup to protect his idea. Although you have very good idea, if your application is not properly drafted, it cannot be protected and just provide ideas to others.
My general suggestion is that the draft shall be done from a point of view of real litigation such as infringement, license and invalidation procedures. For example, there are some general rules: your draft shall put more emphasis on product claims, shall cover the whole industry flow, shall be in the view of one party, and so on.
Second,getting an effective patent application document is the best way of saving money.
Some startup would like to save money and draft the application themselves or seek the lowest price of drafting. Actually, this is just to waste your money and is most expensive in view of the effect.Not like a grown company, a startup generally starts from a basic idea. If this basic idea was not properly protected, it would be difficult to rescue it later, especially in Europe, Japan and China, which are very strict with amendments.
So, my suggestion for the startup's drafting is to draft from the litigation/enforcement view and the quality is always prior to the cost.
2. Strategies for filing in China
Because I am practicing in China, I just talk about the strategies in China
There are generally two ways for entry into China, first is Paris Convention approach and second is PCT approach.
Which approach to be chosen will depend on your individual situation.
For example, if your idea is very easy to copy, or if you have already manufactured your products, or if the technology field is changed very fast, I recommend the Paris Convention approach which will give you a more quicker protection. Besides, in China, for the Paris Convention approach, it is possible for the applicant to choose filing an invention patent application and an utility model patent application on the same day. For an utility model patent application, it will be even quicker to get a patent right, generally within one year. I have handled several utility model patent application which were granted less than two months.By using the combination of invention and utility model patents, you can get a quicker protection together with a stable protection.
If your idea relates to an industry which need a large investment to build a factory, for example, I recommend the PCT approach because it is not urgent to enforce the right. The PCT approach will delay the timings of entry into China, and the startup need not to pay the money at the very beginning.

Hi,

In general, startups have limited financial resources, but need the patent protection to entice investors. A good balance is to only patent core technologies. An option many overlook is purchasing other's patents. Consider limiting to US filings (or what jurisdiction you are in) until you can afford foreign if that is a desire. Go for patent agents, or small to med firms to avoid the higher costs of larger firms.

Hope this helps!
Mary