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![]() FEBRUARY 7, 2000 VOL. 155 NO. 5
![]() Russel Wong for TIME Surfers log on in an Internet cafe in Singapore, one Asian dotcom hotspot. It's no surprise Asia is embracing the New Economy model. Just check out what's been going on across the Pacific. New York's NASDAQ index, loaded with technology and Internet stocks, soared 85% in 1999, fueled by $70 billion in new floats--a figure equal to Malaysia's GDP. If the share price of Yahoo!, the Net search-engine company now valued at $82 billion, climbs this year as it did last, the company will be as big as the Australian economy. That's how the New Economy compares with the old, and until recently, Asia was about as racy as a 2.4K modem. Though it may now seem that everyone is making huge piles of money, the big returns aren't automatic. For every Internet success story, there are countless failures. To succeed, a venture has to be conceptually brilliant, quick off the mark and able to woo investors. In the following pages, we'll take you through the various stages of a successful Internet play, from being a promising start-up; to winning financial backing from an "angel" investor and, subsequently, a venture capitalist; to maturing under the guidance of an "incubator"; and finally becoming ready for the big payout: either a stock market listing or simply selling the company. Fortunes will be made. Richard Li's Pacific Century CyberWorks group, a kind of Asian Internet mutual fund, last week announced yet another deal: a joint venture with CMGI to develop Asian versions of the American company's Internet brands, like Lycos, AltaVista and AdForce. PCCW is now priced as one of Hong Kong's biggest companies; a year ago it didn't exist. Its profits so far: zip. In Singapore, Chua Kee Lock had a net worth last year of $250,000, if you counted his car and pension fund. Today, he's CEO of a (profitless) Internet telephony company and has a personal net worth of $6 million. To prepare for the high rolling that's to come, NASDAQ-style exchanges are appearing in Hong Kong, Shanghai and Tokyo. Fortunes will be lost as well in the market gyrations that are already wracking the region. But risk is what Asia has always excelled in. "The Pacific Century has not been lost," says Singaporean Netrepreneur Wong Toon King, "only delayed a bit." A brand new future? A bubble beyond anything we've seen in the past? A bit of both? Brace yourself: by any standard, Asia's New Economy is going to provide a wild and thrilling ride. COVER STORY First, Create the Hot Start-up Then Pray for The Angel Next, Call in The Venture Capitalist Cozy Up with The Incubator Now You Are Ready for The Listing Or, You Can Just Sell Out Write to TIME at mail@web.timeasia.com TIME Asia home
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