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Samwer brothers: Clone masters of Europe's startup scene

Discover how the Samwer Brothers built a multi-billion-dollar empire by copying successful U.S. startups.

Samwer brothers: Clone masters of Europe's startup scene

Wednesday November 13, 2024 , 4 min Read

The startup world has many success stories, but few are as controversial as the Samwer Brothers. Meet Alexander, Marc, and Oliver Samwer, 3 German siblings, who became famous for doing one thing exceptionally well: cloning successful companies and bringing them to Europe and beyond.

Their strategy was simple but ruthlessly effective—identify lucrative U.S. startups, replicate their business models, and execute with precision. This "copycat" model took Europe by storm, earning the Samwers billions!

But while their success is undeniable, their approach has sparked fierce debate. So, let’s take a closer look at how the Samwer Brothers became one of Europe’s most notorious and successful entrepreneurs!

The cloning game: How it all started

Copycat business

The Samwer brothers grew up in Cologne, inspired by their businessman father. After moving to San Francisco and living in Silicon Valley, they witnessed the rapid growth of U.S. tech companies like eBay and Amazon. Observing these companies' slow international expansion, the brothers recognised a market gap that they were eager to fill.

Birth of Alando: eBay's German twin

The Samwers' first big break came in 1999 with the creation of Alando, a German version of eBay. The idea was simple: replicate the features and functionality of eBay, which had not yet expanded outside the U.S., and bring it to Germany.

They launched Alando months after conceiving the idea, and it quickly gained traction. Within a month, Alando had 3 million page views, and by the end of its first 100 days, it had become Germany’s number-one auction site.

In fact, just 100 days after launching, the Samwer Brothers sold Alando to eBay for a whopping $43 million. This early exit demonstrated their talent for identifying and executing successful business models. It also established a pattern that would become their trademark: clone, scale, and sell.

The winning formula: Copycat success

The success of Alando wasn’t just a fluke—it was a masterclass in replication. The Samwer Brothers identified the key elements of eBay’s business model, understood how it worked, and launched a near-identical version in Germany. They executed flawlessly, using aggressive marketing and rapid scaling to outpace competitors.

This was the formula that pushed them forward: identify lucrative U.S. internet companies, copy their models, and execute faster and more aggressively than anyone else.

From Easy Taxi (a taxi service provider based on Uber) to MyVideo (an online video platform inspired by YouTube), the Samwers demonstrated a knack for spotting successful business models and replicating them across Europe.

Each new venture followed the same playbook: study the original, adapt it for the local market, and scale it quickly. These deals cemented the Samwer Brothers' reputation as the kings of "copycat" entrepreneurship.

The rise of Rocket Internet

In 2007, the Samwer Brothers took their copycat strategy to the next level by founding Rocket Internet, a startup incubator designed to replicate successful models on an industrial scale.

With Rocket Internet, they didn’t just clone businesses—they created a pipeline of startups that could rapidly scale and dominate markets. Samwer-brother-backed incubator's portfolio grew to include companies like Zalando (an e-commerce giant inspired by Zappos), and Lazada (a copy of Amazon in Southeast Asia).

The Samwer Brothers’ willingness to take on huge risks and raise capital allowed them to scale quickly. By 2014, Rocket Internet had more than 30,000 employees and had raised $2 billion from investors.

Fast forward to today, Rocket Internet has a big portfolio of more than 200 companies spread over 6 continents. All of these firms have a cumulative massive valuation of around €30 billion according to the company.

Backlash on copycat tactics

The Samwer Brothers achieved undeniable success, but their methods faced heavy criticism for lacking originality and merely copying others. Their aggressive tactics—rapid scaling and market domination—led to a reputation for ruthlessness.

Additionally, they were accused of promoting toxic work environments at Rocket Internet. Despite the backlash, the brothers remained focused on their mission, arguing that their approach mirrored that of industries like car manufacturing, where successful models are often replicated. For them, execution and quick scaling were what truly mattered.

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The Samwer brothers' legacy

Love them or hate them, the Samwer Brothers have left an indelible mark on the startup world. Their copycat business model proved that exceptional execution can overcome market disadvantages. Despite their controversial methods, their ambition and quick scaling have led to a thriving business empire. Their story highlights that success in entrepreneurship often stems from identifying opportunities, executing and scaling rapidly, with a strategy of "clone and conquer."