Tuesday, March 6, 2012

Samwer brothers, art of copy and execution

Bloomberg Businessweek reported some time ago an interesting story in regard to Oliver, Marc, and Alexander Samwer, a trio of German brothers who have a wildly successful business model: Find a promising Internet business, in the U.S., and clone it internationally. Since starting their first dot-clone in 1999, a German version of EBay, they’ve duplicated Airbnb, eHarmony, Pinterest, and other high-profile businesses. In total, they’ve launched more than 100 companies. Their Zappos clone, Zalando, now dominates six European markets and is estimated to be worth $1 billion by Financial Times Deutschland. Through their venture capital firm, the European Founders Fund, they also invested in European knockoffs of Facebook and YouTube (GOOG), which sold for $112 million and $36 million, respectively.

The Samwers’ base of operations is a startup accelerator in Berlin called Rocket Internet. Rocket launches companies, hires staff, and provides marketing, design, search engine optimization, and day-to-day management until the startup can fend for itself. Rocket’s executives won’t disclose revenue, but a former high-level employee estimates the company is worth at least $1 billion. Oliver Samwer, the middle brother and de facto head of the operation, says the firm has offices in at least 20 countries and has created 20,000 jobs over the years.

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