In 1919 J S Rasmussen and Company demonstrated an 18cc two-stroke 'toy' engine. It wasn't really a toy per-se but a proof of concept that the company shopped around at industrial shows to drum up business. The 'toy' was soon replaced by a 30cc clip-on bicycle motor, which became a best seller and made the company's fortune. Soon DKW began manufacturing bicycles. It would only be a matter of time before they were manufacturing fully fledged motorcycles.
A major part of the company's business was stationary and industrial engines, which were used in all manner of applications, such as small cars and motorbikes, motorboats and outboards. The company also attempted to develop a 'kleinstauto' (micro-car) of their own called the 'bergsteiger' (little hill climber). It wasn't a success, as the lightweight engines of this period did not have sufficient power. Only a handful were ever built.
Looking for another way to break into the kleinstauto market, DKW managing director Jorge Rasmussen stumbled across the Slaby-Beringer electrowagen. He liked what he saw and placed an order. When Slaby-Beringer fell into financial difficulties in 1924 he bought the company. Within a year Slaby-Beringer were manufacturing a two-stroke powered version with an improved DKW engine. https://dkwautounionproject.blogspot.com/2017/06/1919-slaby-beringer-elektrowagen.html
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