Start ups are generally not asset-rich and their business potential is less capable of being valued. The character, ability and means of their founders are relatively unknown. They generally lack connections with the investors, or are not proficient in presenting their ideas and innovations to them. It is difficult for them to get listed on main board or Sesdaq as the processing takes longer as well as being expensive. Nominated advisers who carry out due diligence and play the role of “gatekeepers” would certainly help in solving all these problems and protect the investors. To ensure success for the model, regulation should be made more lightly or regulation should be self-imposed rather than market-imposed. The nominated advisers should also act as whistle-blowers when things do not turn out the ways they anticipate.
Tan Kok Leong
Principal
TKL Consulting
Monday March 13 2006