Feature: Turning Web 2.0 into a cash cow still a puzzle

While emerging Web 2.0 busi-nesses could be an investment target for venture capitalists, few of these firms have come out with concrete and profitable business models, said Max Fang (方國健), chairman and CEO of Maxima Ventures I Inc (麥實創投).

Many Web 2.0 sites are capable of accumulating subscribers in a short period of time, but transforming the large volume of visitors into profit remains a puzzle for these companies, Fang said.

"I think capitalists in Taiwan still don't have a clear picture of the industry," Fang said.

"People thinking of going into the Web 2.0 business should be more careful before getting sucked into another bubble," he said.