VCs advised to work with dotcoms
Susan LoonePublished: Jan 20, 2001 9:21 AM | Updated: Jan 29, 2008 6:21 PM
Many venture capitalists have yet to understand the New Economy or how to take advantage of it, therefore they need the small dotcom companies to help them build the new economy, Finance Minister Daim Zainuddin said today.
In turn, he said, the dotcoms need the venture capitalists for industry knowledge, for venture capitalists do not just give money, they are also expected to help businesses so that they make profits.
"In order words, venture capitalist give 'smart money' and are also the ones who are able to provide market access and the necessary management expertise," he said in his opening speech for the Multimedia Asia 2000 Conference and Exhibition at PWTC in Kuala Lumpur.
Daim's speech was read out by deputy finance minister Chan Kong Choy.
"We have all witnessed the rise and fall of may dotcoms over the past six months. Sadly, many of these microcompanies have folded, some because of lack of funding to see their projects through, others because of inadequate market access and others because they were not able to compete effectively," he said.
As to whether a real, viable and sustainable business model for the E-world has yet emerged, Daim himself is unsure.
He said dotcoms are not only competing against other new dotcoms, but also the "big boys" who have learnt the new game.
Since these microcompanies need access and funds, they must find partners to help to create the network economy to sustain them.
Daim advised venture capitalist financiers not to turn to the government for funding as governments are not in business and cannot help manage business.
He stated that the government has already started the process of developing a "K-economy Masterplan", which will be a coherent and comprehensive set of strategies for Malaysia and Malaysians to undertake, to enable the country's migration from the current production or P-economy to a knowledge or K-economy.
Some 170 companies including malaysiakini.com are participating in the three-day IT show. Some malaysiakini staff and contributors will be there, with a full-force turnout expected on Saturday ([#1]'Malaysiakini' to participate in dotcom expo[/#], Sept 25).
In turn, he said, the dotcoms need the venture capitalists for industry knowledge, for venture capitalists do not just give money, they are also expected to help businesses so that they make profits.
"In order words, venture capitalist give 'smart money' and are also the ones who are able to provide market access and the necessary management expertise," he said in his opening speech for the Multimedia Asia 2000 Conference and Exhibition at PWTC in Kuala Lumpur.
Daim's speech was read out by deputy finance minister Chan Kong Choy.
"We have all witnessed the rise and fall of may dotcoms over the past six months. Sadly, many of these microcompanies have folded, some because of lack of funding to see their projects through, others because of inadequate market access and others because they were not able to compete effectively," he said.
As to whether a real, viable and sustainable business model for the E-world has yet emerged, Daim himself is unsure.
He said dotcoms are not only competing against other new dotcoms, but also the "big boys" who have learnt the new game.
Since these microcompanies need access and funds, they must find partners to help to create the network economy to sustain them.
Daim advised venture capitalist financiers not to turn to the government for funding as governments are not in business and cannot help manage business.
He stated that the government has already started the process of developing a "K-economy Masterplan", which will be a coherent and comprehensive set of strategies for Malaysia and Malaysians to undertake, to enable the country's migration from the current production or P-economy to a knowledge or K-economy.
Some 170 companies including malaysiakini.com are participating in the three-day IT show. Some malaysiakini staff and contributors will be there, with a full-force turnout expected on Saturday ([#1]'Malaysiakini' to participate in dotcom expo[/#], Sept 25).
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