Troubled Newconomy looking for cash

The Dutch internet fund says it is in need of tens of millions of euros.

Dutch internet investment company Newconomy is still looking for capital to secure its short-term future but no agreement with potential strategic partners has been reached as yet.

Newconomy provides risk-bearing capital to internet companies and offers strategic and operational support. The company has admitted to needing tens of millions of euros in order to keep going, according to reports.

Reuters quotes supervisory board member Pieter van Hoogstraten telling a conference on Tuesday that the company’s 2000 net loss could exceed the E33m-E38m that it forecast last month, due to a revaluation of its stake in Wish-NokNok, the internet service provider.

NewConomy also announced it had lifted the suspension on its chairman Maurice de Hond. In January, the company suspended de Hond in a bid to improve its cash position and shortly afterwards issued a profit warning for 2000.

De Hond will become the company’s sole manager, while Kees Scholtes, his interim successor, will become a director of restructuring.

Newconomy, which has investments in approximately 30 companies, also announced plans to become a closed investment fund with a value of at least E100m and a maturity of seven years, possibly to be extended to 10. A spokesperson for the company explained that the company will not sell off any of its investments during the period of maturity. Shares in the company are trading at E1.55. The company listed in April last year at E10.50 and shares reached a peak of E26.90 in May.