From Invisible to Irresistible: Intellectual Property and Digital Media & Entertainment Ventures in Korea

Abstract

In this paper, we investigate the relationship between a company's Intellectual Property (IP) portfolio strength and its success in obtaining venture funding in the Korean digital media & entertainment industry. Using data from 685 Korean digital media & entertainment companies registered in Crunchbase, a global database provider of venture funding information, we found that a strong IP portfolio is positively associated with funding success. Furthermore, our study revealed that the effect of IP portfolio strength on funding success is stronger for younger companies, suggesting that IP portfolio is more critical for firms that have less reputation and track record.