it also finds that while manufacturing firms are more likely to patent than firms in other sectors most patenting firms are in the services and wholesale sectors the first by farremensa hegde et al focuses on the impact of ip rights on companies ability to raise finance the research presents causal evidence of the direct benefits of patent rights in a large sample of startups it shows that patents offer gains to entrepreneurs and small inventors especially if processed in a timely manner in particular patents appear to play an important role in reducing uncertainty and alleviating information asymmetries in the market for entrepreneurial capital ie fundraising