We call our subsidiaries and partnership projects as verticals. Usually a vertical is a joint venture with selected partners in a specific industry and market area.
Recognising and realising potential
We have an active business development team constantly exploring new opportunities across new industries and new market areas, talking to industry experts and professionals and proposing new business models to these entities, related to the eCommerce market.
We have created a model to recognise the potential, risks and viability of these new opportunities. This model involves a market study to understand the current value and supply chain(s), analysing profitability and monetisation options, size and scalability, market specific secrets and nuances to form an educated estimation of the potential in general.
Building a vertical
Based on the positive outcome of any new opportunity, we create a light business plan and use it to gain interest in raising funds for a new vertical, find the right operational partners before getting a new company founded.
After establishing a company, we start building the business together with the operational party/parties by closing the first funding round, finalising a business plan, talking to selected industry players, agreeing any licensing terms between GW and a vertical regarding the GW Core platform and/or other applications and software provided by GW and building the first MVP* product for the piloting phase.
We are actively involved in the initiation phase as we will add value to speeding up the process, ensuring the right business model and applied products from a technical point of view.
Once a vertical is live, we will hand out the operational responsibility to the selected partners and withdraw from the daily operations and remain as advisors and board members supporting the growth of the vertical.
* MVP = minimum viable product
Managing and growing verticals
As each vertical is its own business, they are managed and monitored independently.
We monitor each vertical by its specific KPI’s set together with the operational partners on a regular basis to ensure the viability of the business but also to analyse chosen strategies, team members and profitability.
Each vertical should achieve enough revenue to get to break-even within 12 months after going live or meet any other set KPI’s, or its viability will be re-evaluated and decided upon. For clarification, some vertical strategies are based on a positioning play instead of reaching profitability within its first operating year.
We will constantly apply new business strategies, technologies and cross-vertical business opportunities within our portfolio companies leveraging synergies to speed up growth and increase profitability.
We typically choose to go into verticals that have an exit opportunity. This is one of the reasons behind having these verticals as independent companies.
Our vertical strategy is to create a disruptive, fast-growing company that is profitable, has a scalable business model and is a going concern that raises the interest of respective competitors and players within that industry, directly and indirectly.
We are typically looking at an exit in 3-5 years from initiation. We expect the buyer being from one of these categories:
- Our partner in the vertical, as they typically are an industry player
- A direct/indirect industry player seeking growth and/or better market position
- A financial organisation