Undeterred by market conditions, Goodwill Investment (Holdings) has earmarked HK$400 million for direct investment in mature technology companies at the pre-flotation stage.
'We believe that over 90 per cent of [technology start-ups] we meet will not survive because they have unrealistic earnings expectations,' chief executive S J Wong said.
'We'll focus on the 5 per cent with track records and real earnings prospects.' In most cases, Goodwill's venture-capital arm would take majority stakes in the start-ups, restructure them, then spin them off, he said.
Chairman Fung Ka-bun said the company - to be renamed e2-Capital - would generate HK$700 million in cash in the next year by selling investment properties and industrial holdings.
It has so far also raised HK$276 million from the sale of a combined 11 per cent stake to Pacific Century CyberWorks and Softbank.
Goodwill shareholders yesterday approved the acquisition of technology investment bank e2-Capital, technology consultancy Pacific Connections, and marketing firm Keith Stathum Associates.
Although Mr Wong expected fund-raising operations to be affected in coming weeks, he predicted a strong pick-up next month when 'old economy' companies began buying up under-valued technology firms.
