The billion-dollar copycats: How three brothers turned cloning startups into a global empire

Economic Times

01-05-2025

German brothers Marc, Oliver, and Alexander Samwer became billionaires by cloning successful U.S. startups like eBay, Airbnb, and Amazon, and launching their replicas in Europe. Their venture studio, Rocket Internet, industrialized this model, creating over 200 companies. Though controversial for copying ideas, their strategy of rapid execution and market dominance made them one of Europe's most successful tech entrepreneurs.
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In the late '90s, Silicon Valley was sizzling with innovation. But across the Atlantic, three German brothers — Marc, Oliver, and Alexander Samwer — were plotting something that would shake the startup world. The trio had just returned from the U.S., captivated by a rising platform called eBay . Eager to bring the online auction revolution to Germany, they pitched eBay a simple proposal: let us expand your business in Europe.eBay said no.Undeterred, the brothers took matters into their own hands. In 1999, they launched Alando, a near carbon copy of eBay tailored for the German market. What followed was nothing short of digital wizardry. In just 100 days, Alando became Germany's leading auction site. eBay — now watching closely — made a staggering U-turn, buying Alando for $43 million. That hundred-day sprint marked the beginning of a trend: see it, clone it, sell it.Flush with cash and confidence, the Samwer brothers built Rocket Internet in 2007, a venture studio engineered to mass-produce replicas of Silicon Valley success stories. While most founders chased innovation, the Samwers perfected replication. Their mantra? 'Innovation is overrated, execution is everything.'Rocket Internet didn't just build companies — it manufactured them. Its Berlin headquarters became a startup assembly line, offering entrepreneurs office space, tech support, marketing, and investor access. Soon, clones of Amazon (Lazada), Zappos (Zalando), Uber (Easy Taxi), Airbnb (Wimdu) and more began popping up across Europe, Asia, and Latin America.By 2014, Rocket Internet had raised over $2 billion, operated in more than 100 countries, and employed over 30,000 people. Its startups weren't just surviving — many were thriving, some even listed on stock exchanges.Today, each Samwer brother is worth over $1.2 billion. Their clone empire has attracted big-name investors and lucrative exits. They have invested in the likes of Facebook, LinkedIn, and Zynga, and their stake in Groupon alone was once estimated at over a billion dollars.But success has come with no shortage of controversy. At global tech summits from Paris to Berlin, their names evoke admiration and disdain in equal measure. Critics label them 'the kings of cloning', arguing that they piggyback on others' hard work. Supporters, however, point out that they bring services to markets where originals hesitated to expand — and that in business, speed and execution often matter more than originality.Even major U.S. firms have quietly welcomed their approach. The Samwers often opened new markets so effectively that original creators found it more strategic to acquire the clone than to build from scratch.Despite the glamor of billion-dollar valuations, Rocket Internet and its founders have faced harsh scrutiny. Former employees have accused the company of fostering toxic work environments, marked by extreme pressure, long hours, and aggressive targets. Their relentless push for speed over creativity has earned both praise for results — and scorn for ethics.Yet, the brothers remain unfazed. They defend their model as no different from other industries: 'Car companies don't reinvent the wheel every time — they just build better cars.'Love them or loathe them, the Samwer brothers changed the rules of global entrepreneurship . Where others saw barriers, they saw blueprints. Their story is a bold reminder that in the digital age, the line between innovation and imitation is blurrier than ever — and that sometimes, fortune doesn't favor the first mover, but the fastest follower.The tale of the Samwer brothers is not just about cloning — it's about timing, audacity, and an unapologetic belief in ruthless execution. From a failed pitch to a billion-dollar empire, they didn't just copy the Silicon Valley playbook. They sold it back — at a profit.