Imagine growing up in Germany with two brothers just as ambitious and risk-taking as you are. That was the environment the Samwer brothers—Marc, Oliver, and Alexander—grew up in.

This trio has made a name for themselves in Europe’s startup scene by replicating American internet companies with German precision and discipline. They’ve had great success copying models that work, while also facing controversy around their ruthless execution style.

There is much aspiring entrepreneurs can learn from studying Marc, Oliver, and Alexander Samwer. Let’s dive into their background, successes, style, and impact.

Early Days and Influences

The Samwer brothers grew up in Cologne, Germany in the 1970s and 80s. Their father was a successful businessman who no doubt influenced their capitalistic and competitive nature.

From early on, the brothers stood out for their intelligence, ambition, and confidence. All three attended the WHU-Otto Beisheim School of Management, one of Germany’s top business schools comparable to Harvard or Stanford in the US.

There, the Samwers began honing their entrepreneurial skills. Instead of resting on their privileged background, the brothers showed intense drive and stamina. While their peers were partying on weekends, you could often find the Samwer brothers hustling various business ideas.

The Story Behind Alando

After graduating from university, the Samwer brothers made a name for themselves in 1998-1999 by creating Alando, a German version of the American auction site eBay.

The brothers recognized the enormous success eBay was having in the US. They asked themselves—why couldn’t an eBay-like model work in Germany?

At the time, eBay had not yet expanded into most international markets. The Samwers saw an opportunity to take advantage of Germany’s early adoption of internet access to establish an auction franchise before eBay got there.

So in typical Samwer fashion, they executed rapidly and aggressively to launch Alando to first-mover advantage. They offered a direct copycat of all eBay’s core functions from seller listings to buyer payments.

The site started slowly but eventually took off. Within just 100 days of launch, Alando became Germany’s #1 auction site. Revenues climbed quickly helped by TV and print advertising campaigns the brothers funded.

Their strategy was working! eBay took note and in 1999 acquired Alando from the Samwer brothers for $50 million. It was a huge win that massively paid off their investment in under a year.

The Alando story shows the Samwers’ skill in:

• Identifying proven business models
• Moving rapidly to outpace larger competitors
• Promoting aggressively via marketing campaigns
• Flipping startups quickly for large multiples

Alando established the Samwer brothers as a force to be reckoned with in Europe’s internet scene. More importantly, it kicked off their strategy for success in spotting and rapidly copying what works.

Copying Proven Models

With Alando’s smash success, the Samwer brothers had confidence in their model-replication strategy. If it worked once, why not again and again?

Over the next decade, they executed the same playbook to build and flip one startup after another. Typically their model was as follows:

Step 1 – Identify the most successful internet companies in large economies experiencing rapid, hockey-stick-style growth

Step 2 – Research exactly why and how they work, all the way down to their code and functions

Step 3 – Launch a near identical clone brand in Germany and other countries, often using the experience from past companies

Step 4 – Scale up rapidly through aggressive marketing and funding

Step 5 – Sell the company off to the major player they copied, for a huge multiple on their investment

Using this simple but audacious strategy, the Samwer brothers spawned startup after startup:

• Jamba: Ringtone provider copied from VeriSign
• Zanox: Affiliate marketing network copied from Affiliate Fuel/Offermatica
• MyVideo: Video hosting copied from YouTube
• Wimdu: Vacation rentals copied from Airbnb
• CityDeal: Daily deals copied from Groupon

In most cases, the brothers flipped their copycat companies to the originals, with some excitations being taken public. Their track record and Midas-touch reputations allowed them to raise more for each subsequent endeavor.

Funding and Finding Startups through Rocket Internet

The Samwer’s didn’t just spot startups from halfway across the world. They also became startup founders themselves by founding the “Startup Studio” Rocket Internet in 2007.

Originally called JAC, Rocket Internet enabled the brothers to incubate their ideas instead of just replicating existing ones. While they continued copying US models, Rocket also developed its early-mover ideas tailored to emerging markets.

With Rocket, the brothers could hire armies of young business developers and programmers to build scaled-up versions of startups at lightning pace.

The staff lived by Samwer’s mantras—speed over perfection, hiring fast learners over experienced experts, and growth at any cost.

Rocket Internet eventually grew to over 30,000 employees. In 2014, it raised over $2 billion in funding from various sources including Russian oligarch Len Blavatnik and Swedish investment firm Kinnevik.

This mega-funding valued the startup studio at $6.6 billion in 2015, cementing Samwer’s status as German internet royalty.

Today, Rocket Internet and its constellation of affiliated startups in e-commerce, marketplaces, travel, financial technology, and more, are together valued at over $12 billion.

Controversial Tactics

Over the years, the Samwer brothers have drawn controversy in European startup circles for their relentless execution tactics.

Many developers have called working at Rocket Internet companies a toxic “pressure cooker” environment. Long hours and unrealistic deadlines are just the tip of the iceberg. There were reports of Rocket staff crying at their desks from stress.

The Samwer’s obsession with rapid scaling also led to questionable practices like buying customers and transactions to show false growth. Lawsuits were filed by competitors complaining the brothers used every trick to undermine rivals.

Critics also argue the brothers are glorified business plagiarists. They got rich by unfairly copying original entrepreneurs and diverting momentum away from the very companies they duplicated.

Perhaps the Samwer’s copied models too competitively. But they also shouldered huge risks in execution. In emerging markets, they endured daily operational struggles most Silicon Valley geeks would run from.

Is it right to crucify ambitious entrepreneurs willing to copy models and take high risks? The controversy continues as the Samwer’s move on to new frontiers.

Impact and Legacy

Say what you want about their controversial tactics—the Samwer brothers made an undeniable impact as Europe’s most successful internet entrepreneurs.

Here are some other key aspects of their influence on startup ecosystems globally:

• Inspired legions of European entrepreneurs to think bigger in competing with Silicon Valley
• Shortened learning curves by copying models to accelerate innovation cycles
• Developed playbooks for lean startup replication that spread across the world
• Backed some hugely impactful models like Facebook, Airbnb and LinkedIn early on
• Forced American internet giants to expand internationally faster
• Demonstrated global execution to bridge developed and emerging digital economies

The Samwer brothers opened the door for entrepreneurs worldwide to compete digitally on a global playing field. Today their influence is baked into the DNA of many startups.

Lessons Learned

For aspiring entrepreneurs, the Samwer brothers’ story offers thought-provoking lessons—both good and bad:

Speed over perfection: Success favors the swift. Don’t wait for perfect timing or conditions that may never come. Execute fast and test market reaction.

Great execution compounds: The more you successfully scale startups, the more leverage, talent and capital you can attract for future ones. Execute well and momentum compounds.

Ruthlessness has consequences: Do the ends always justify the means? The Samwer’s mercenary tactics damaged careers and relationships. There’s always a karmic cost for moving too aggressively.

Copy intelligently: Model replication makes sense when entering proven industries lacking your local footprint. But customize portions of the model to stand out positively from the original.

Partner powerfully: Having brothers to lean on during volatile entrepreneurial pursuits is a blessing. But even solo founders can ally smartly with those whose skills complement their own.

Which lessons from the Samwer brothers stand out most to you? What other takeaways emerge from their journey? While controversies remain, this trio has undoubtedly left a mark for generations of founders to come.

TL;DR

The Samwer brothers took model cloning to the bank, rapidly replicating some of America’s hottest internet companies with ruthless German efficiency.

Though controversial for their extreme tactics, they cemented their status as Europe’s leading startup pioneers. Their playbooks shaped modern tech entrepreneurship globally across borders and business models.

For founders worldwide aiming high today, there remains much to learn from how the Samwers analyzed models, eliminated inefficiencies, and executed flawlessly. Study their unique formula that often optimized proven ideas better than originators through raw speed and precision.

Love them or hate them, the Samwer trio demonstrated how world-class execution trumps almost any location disadvantage. Aspiring startup builders still stand on their shoulders to reach for greater heights.