If the venture-capital firms seem picky, they can afford to. Aside from capital, they offer strategic and financial advice to companies they invest in. Incubators, which provide office space, administrative support and basic infrastructure backup to companies during the early stages of their development, are an alternative source of funding for Internet start-ups. But they aren't always preferred, partly because they ask for a large stake in the companies they help. Incubators are more popular in large underdeveloped markets like China than in developed markets like Hong Kong and Singapore.
Venture capitalists are basically risk-takers.
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