New York-based startup Patlytics has secured $14 million in Series A funding to further develop its AI-powered patent analytics platform, which aims to streamline patent workflows for corporations, IP professionals, and law firms. The funding round, led by Next47 with participation from existing investors including Google's Gradient, 8VC, Alumni Ventures, Liquid 2 Ventures, and Myriad Venture Partners, brings the company's total raised to $21 million.

Founded in January 2024 by CEO Paul Lee and CTO Arthur Jen, Patlytics seeks to address the inefficiencies in the patent industry, where manual efforts have long been the norm. Lee, a former venture capitalist, recognized the need for innovation in the IP space, while Jen's experience in managing patent filings and protection at Magic, a crypto wallet company, provided firsthand insight into the slow workflow.

The Patlytics platform leverages large language models (LLMs) and generative AI to automate tasks such as patent application drafting, invention disclosures, invalidity analysis, infringement detection, and IP assets portfolio management. This technology has already shown promising results, with the startup reporting a 20x increase in annual recurring revenue (ARR) and an 18x expansion in its customer base within six months, accompanied by a sustained 300% month-over-month growth rate.

The company's client base, which includes notable names like Abnormal Security, Google, Koch Disruptive Technologies, and Quinn Emanuel Urquhart & Sullivan, is divided evenly between law firms and corporate clients from industries such as semiconductors, bio, pharmaceuticals, and more. Patlytics has also expanded its reach to South Korea and Japan, with a pilot product launched in London and Germany.

With the Series A funding, Patlytics plans to scale its sales efforts and invest in product development, including hiring more engineers and expanding into different modules. The company has already doubled its employee count from 11 to meet growing customer demand since April 2024. Eric Lin, an experienced IP litigator, will join the Patlytics leadership team as vice president of strategy, guiding the company's next phase of growth.

According to Bob Steinberg, Patlytics advisory board member and chair of the Patent Trial and Appeal Board (PTAB) Practice at Latham & Watkins, the platform's ability to automatically conduct technical discovery and generate detailed claim charts can significantly reduce costs and attorney hours. This technology has the potential to facilitate more efficient litigation, negotiations, and transactions in the patent conflict resolution process.

The Patlytics platform's impact on the patent industry cannot be overstated. By harnessing the power of AI, the company is poised to revolutionize the way corporations, IP professionals, and law firms approach patent workflows. As the industry continues to evolve, Patlytics is well-positioned to play a leading role in shaping the future of patent analytics.