cost and cut-throat competition.
Thus, there is a need to channel
venture capital into the manufacturing sector to enable our industries to expand their risk capacities in return for technological innovations and product enhancements.
It is generally recognized that there are different stages of financing requirements in a venture capital assessment. The most difficult financing is for a new company at its seeding stage when equity investments is usually needed. In this phase of "startup financing", the new company has to retain its cashflow in the initial years. Interest payment at this stage will often strain the infant company. Another stage of financing known as the "public offering" stage, appears when the company has established a record of its market share and its investment risk can be more clearly analysed. Only then will the company be in a position to raise capital publicly in a less established capital market such as an Over-the-Counter (OTC) market. To proceed beyond the public offering stage, the company may qualify for a full listing in the stock exchange.
For startup financing it will not be easy for a company to be listed even on an Over-the-Counter market as the public is I would like not able to analyse the investment risks involved.
to suggest that a new category of investment dealers, known as
With Venture Capital Investment Dealers (VCID) should be created. knowledge of venture investors' profiles and capabilities, these dealers will act as media to put companies in need of venture capital in touch with willing takers. They should also be registered with the Securities Commission as licensed dealers, operating under supervision to organise venture capital for small business as well as to provide advice to interested investors. Naturally, the risk of investing in these companies will be high but the judgement of whether it is an appropriate investment should be left to the investor with the assistance of professional
We must advice from these venture capital investment dealers. also bear in mind that venture capital not only carry with it the
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