Rocket Internet: The Start-up Factory

The case describes the rise of Rocket Internet (Rocket), a German internet company which was a cross between a consultancy and a venture capitalist (VC) and one of the world’s largest start-up incubators, and the challenges it faced. Rocket invested in internet companies that took mature and proven business models from developed markets to fast-growing markets. Rocket’s forte was rapid deployment of capital and rapid execution that would enable the start-ups to overtake the incumbents. Rocket created shareholder value by exiting start-ups either through an IPO or by selling them to the competition. The case further describes the challenges faced by Rocket in 2016 to bring in further growth in the wake of the criticism it faced for its business model and the slump in the valuation of its top start-ups.