Following in the footsteps of international corporate giants, local companies have begun using venture capital for outsourcing research and development.
A top venture capitalist says at least one Sri Lankan conglomerate has started funding start-ups in the hope that they will develop a useful product that can be commercially exploited later.rn
rnLarge conglomerates have a higher cost structure than infant companies and massive amounts of money can be saved through this means.rn
rnldblquote When large companies try to do R&D the high salaries and perks of CEOs are facted into the cost, dblquote points out Nextventures CEO Nissanka Werasekara.rn
rnldblquote Why not pay some guys who is willing kill themselves; work 20 hrs without any perks. Put equity in that company. Buy the technology if it works. Small money lost if it didnt work. rn
rnldblquote Our corporates need to think. A few companies like Hemas has started this. dblquotern
rnMr. Weeraskera was speaking at a seminar organized by the C