Asia Business Consulting

From Information to Strategic Knowledge by Asia Business Consulting ( What kind of jewels can you find in the news. And how great it is to have a company that fully uses those to support its primary research and consult your company strategically to really improve your business. This blog supports your business already. For more, talk to us - Asia Business Consulting. A better way to do business.

Friday, July 08, 2005

Blogging company wants to get listed on Nasdaq

Nasdaq - the ultimate dream for any tech company. Back in 1999, companies could get listed by just showing some very rudimentary business model - the bubble was created.

May be it is the same with blogs. I mean, the numbers are growing and corporations jump on board, and there are even job postings for bloggers.

The number of blogs in China is growing, of course, and there is now a company that wants to cash in on the trend. "The company that launched China's leading blog portal plans to list on the technology stock-heavy Nasdaq exchange by the second half of next year and hopes to achieve a market capitalisation of more than US$1 billion." One billion is a big number, so, sounds a bit unbelievable, especially when you know that they already received "US$500 million in seed capital from Softbank Asia Infrastructure Fund and will receive a second round of funding of US$10 million this month from a group of six venture capital firms based in China and the United States." So not much money left for any investor. In addition, the difference between US$500 million to US$10 million is huge - how much influence will this give the six venture cap firms mentioned?

Next to consider is the lower revenue flow of the company, that just reached a revenue flow of US$240,000 a month - not much, considering the amount spend by investors.

And with all the controls that China wants to extablish - will there be a huge future? Blogs wheel, because they are not controlled, wild, and intrusive, challenging. Control and blog just doesn't go well with each other.

Well, I wish them all the best.

(By Asia Business Consulting)