Cluster Analysis of the Internationalization of Unicorns from Latin America Based on Trademark Registrations

There has been an increase in recent years in the number of digital start-ups reaching valuation beyond US $1 billion backed by venture capital (VC) funds. These start-ups are commonly referred to as unicorns. This phenomenon, which was originated in the Silicon Valley, has arrived in Latin America, as twenty-seven start-ups can currently be characterized as unicorns in that region. In order to improve understanding of how these start-ups are implementing internationalization strategies, we have examined intellectual property (IP) information associated with these entities. In this way, our analysis of trademark registrations provides evidence suggesting that Brazilian unicorns are focusing their international expansion on a regional, rather than on a global level, as the majority of Brazilian unicorns are registering trademarks in large Latin American economies, such as Argentina, Colombia, and Mexico. In contrast, unicorns from Argentina, Colombia, and Mexico are apparently focusing on a broader international expansion by registering their trademarks in Latin America, especially in Brazil, but also in the USA and Europe.