Problem: Some of the best businesses only exist in certain markets. As a result the place in which one lives affects their technological opportunities. This breeds more and more inequity.
Solution: A business which copies successful businesses from developed markets to reproduce them into less popular or emerging markets. While this seems antithetical to the classic Silicon Valley attitude of “innovate through newness,” the business would subscribe to Picasso’s philosophy that “good artists copy, great artists steal.”
In classic “sealing” fashion, this business idea is not entirely new or unique. In fact, there actually already is one Unicorn company that has seen immense success in the copycat space: Rocket Internet. It’s more of a tri-corn than a unicorn, as reported by the New York Times, “Since starting in 2007, Rocket has backed about 75 start-ups in more than 50 countries that now generate more than $3 billion in annual revenue and employ about 25,000 people.” They continue by writing:
The business model stands in sharp contrast with the ethos that dominates Silicon Valley, where originality is perceived as the main currency for successful start-ups. It also has raised questions over whether Europe’s tech sector, where Rocket is a major player, can ever foster the same level of innovation that has led to a conveyor belt of successful American tech giants like Oracle, Google and Facebook.
Still, Rocket Internet balks at criticism that it is purely a copycat machine. It says all successful business ideas are somewhat borrowed from others, and the ability to take proven tech ideas to emerging markets is a skill unto itself. The small tech start-ups that Rocket supports are often given as little as six months to succeed or face being shut down.
In writing about the founders, Wired in 2012 described them as “Marc, Alexander and Oliver Samwer, three publicity-shy brothers based in Munich and Berlin, are among Europe's most consistently successful digital entrepreneurs. Yet they are also are among the most controversial.”
While a copy is a copy, it still requires true business acumen to turn a copy into a business. As Greg Isenberg reflects and Paul Graham points out,
This business would first attempt to create a comprehensive map of startups and the countries in which they are dominant in order to create the next big thing by simply lifting from one industry and environment to paste or implement it in another. Implementing TikTok in the Brazilian market or Twitter for Nigeria could not only build a business, but also create immediate exit options. It’s no wonder that just in 2019, Rocket Internet posted more than $1.6 billion in cash and cash equivalents on their consolidated income statement and has more than 4.15 billion in total assets. Unlike Rocket, however, this business would build outside of “the West” (Europe and the US).
Monetization: Revenue from copycatted projects or sales through acquisitions.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)