However, as the markets regroup, investors and analysts see promising opportunities still ahead. It's a very natural bloodletting. Earlier last year, Singapore's exchange dropped its own pre-IPO requirements. Since the market correction in April, however, the GEM has lost more than half its value. They thought that whatever the Nasdaq's performance was would be replicated here.
People are no longer willing to put money into high burn rates.
Style-fusion was in the midst of creating its business plan when the market turned, said Thomas Peh Chee Kin, the company's founder. Offering in-person training involves less development expense, requires less bandwidth, and will be easier for customers to understand and accept, Kin said. For smart startups with the potential to turn a profit in less than two years, there is still plenty of money available, investment executives said. Internet and telecommunications infrastructure companies are attractive for investment, especially in optical network hardware and mobile Internet applications, they said, as Asian countries build out fixed-line and wireless networks. China holds especially big potential as the country nears an expected entry into the World Trade Organization, said Jeff Kim, managing director at Softbank Korea Ventures.