Thursday, January 15, 2009

"The Decline and Fall of Venture Capital and Hedge Funds"

Global Star Capital Blog posted by Rich Cocovich, Founder

"The Decline and Fall of Venture Capital and Hedge Funds"
by Rich Cocovich Global Star Capital Founder

I know the title of today's blog seems like a Roman History book that a professor would require as a reading assignment. However, it was the best title that I could think of in explaining what is happening out there in the "world of investment money".

As I have said to many of you in seminars world wide or on guest speaking appearances or even the telephone in the past, the VC and Hedge fund plays would hit a stand still or dry up completely. They did.  One of the lead stories today as I type this around the web and on some financial television shows is the decline in VC and Hedge fund investing to a point of almost non-existence.

One of my best sources was a Fund located near Tarpon Springs, Florida. They were a great avenue for many different types of deals. Then, last November---poof! They disappeared and closed their doors. The manager called me personally to express his gratitude for the many solvent projects I had presented to his fund. He then proceeded to explain that they saw a trend coming in the "next year" where there would be trouble in the USA markets which would have ramifications all over the world (credit, mortgages etc.). Then at the end of the call........he asked me for a job!

Here is some more good information: I am also fortunate in being able to eat lunch with a retired executive of a multi-billion dollar corporation when I am not traveling. I eat with him daily on Hilton Head Island, SC. He is 76 years old and I honestly think he knows everything that can be imagined, he is that sharp. His son is one of the top level executives of a large financial firm in New York City with main offices in London.  I get my valuable information from these lunches on the state of Hedge Funds and their problems that are almost impossible to overcome.

The shoot from the hip truth is that the VC's and Hedge Funds that are still alive will not look at your project unless presented properly in the first place. If you think just "shopping" your business plan etc. around through novice entities is going to work, you are mistaken to the point of utter possible embarrassment which will taint your entire project. In addition, the private investors that had money in the funds or backing the VC's are now out on their own looking for solvent and safe investments through professionals. "Shopping" your project without properly planning and utilizing professional services would be like letting a chiropractor perform brain surgery on you.

With all the above said, "The Decline and Fall of Venture Capital and Hedge Funds" has happened. Furthermore, when taking into context and applying the VC or Fund management philosophies plus billionaire's demand to knowing the solvency of individual projects, not even Caesar could resurrect the money through these avenues at this point to inject.

As I always state though, the money IS out there through the right avenues. You need a constructive plan and the proper professional to work hard for you.  My clients average 7 days after meeting me face to face and fully engaging me while following our game planning to be in the hands of their funding investors on any type of lending. 

You can read more about Rich Cocovich in the EXECUTIVE section of the Global Star Capital website (  DUNS top rating 147151315 from the parent company of Global Star Capital down to all subsidiaries. 

"Can You or Your 'Broker' Really Acquire Funding or An Equity Partner?"

Global Star Capital Blog posted by Rich Cocovich, FOUNDER

"Can You or Your 'Broker' Really Acquire Funding or An Equity Partner?"

I have been experiencing the most productive stretch in my entire career that has been in place since 1991. When banks fail or cannot lend, private money is paramount.

There is plenty of money available in the private sector. From new trust funds that have $3.8 Billion to lend, to existing sources that have stepped up their lending sums of $300 Million per month, the whole way to Private Individuals who will lend at ridiculously low interest rates---sometimes 1.625% interest. Again, read carefully, the money is there for your project and I work with these avenues daily.

Now, the question is: Can you or your "broker" really acquire funding or an equity partner? More than likely, the answer is DEFINITELY NOT. The reason is because you or your "broker" do not have any relationships in place with the "powers that be" who literally control this money. In addition, your documentation and approach are not up to speed which will get you nowhere. On top of the above, you may have your hand out for free services. All of these factors will deter you from finding true funding and speaking with real sources and decision makers. Trust me, I have seen it all in my career spanning over two decades and services clients face to face in 119 countries.

Ask yourself these questions:

1. Is the business plan for your project in the acceptable style for a decision maker?

2. Do you really know what "acceptable style" the decision makers want in terms of documentation?

3. Do you have direct relationships with decision makers?

4. Do you understand that the only projects that are accepted by decision makers who control the money are actually presented by high end professionals (like the world' top intermediary--Rich Cocovich of Global Star Capital

5. Do you understand that real due diligence is performed ONLY after you speak directly to the source and in order to get to that phase, you must have the decision makers accept your project?

6. Do you understand that 99% of the time your attorney or staff legal adviser will deter you from real funding?

7. Do you understand that there are many pieces of true documentation that need completed as requirements for decision makers on your project that only those who are privy to that information can guide you on?

8. Do you know what those documents are in #7? No you do not unless you have a paid professional leading the way.

I could go on and on and on. Global Star Capital was built on relationships with the entities that can actually accomplish your goal. Lately, there have been projects resurfacing from past potential clients. Their projects are being submitted into our system or through truly trained brokers despite already having the opportunity to work with me personally at some point in the past. I just shake my head when I see these projects resurface. So much time and energy is wasted because people are either cheap and have their hand out for free services, or they just do not comprehend that the true way to actually accomplish the final goal takes professionalism and proper representation. Did you ever order a Big Mac at McDonald's and tell the cashier that you were going to eat it without paying? If you have tried that example---did it work?

I urge you to be a part of our process if you desire true results.

You can read more about Rich Cocovich in the EXECUTIVES section of the Global Star Capital website (  DUNS top rating 147151315 from the parent company of Global Star Capital down.

"Success Again---Never Forget Where You Came From"

Global Star Capital Blog posted by Rich Cocovich, C.E.O

"Success Again---Never Forget Where You Came From"

I have decided to post this Blog today based on the recent travelings I have completed consulting new clients. The message is "Never Forget Where You Came From".

The "Success Again" portion of the title above is there for a reason. I have successfully administered services for two additional new clients. One is located in Cambodia and the other in North Carolina, USA.

The difference in cultures is obvious, however the real difference is in the complete project specific comparisons and the principals involved. First the Cambodia project. It is a large real estate deal with many complex sectors and individuals involved, not to mention a Government that can change at the drop of a hat. The CEO and major principal of this project is a pleasurable person, however he is deeply devoted to "delegating" and living a "high life". His only concern is making money and supporting his lifestyle. He realizes my capabilities and how I shoot from the hip, so it will be no shock for him to read this. I took the project on because I knew that I could propel it into the right hands to close. This project and the CEO chased many avenues over the course of a year to which all failed or disappeared. After a long process of explanation, he met with me in person and the rest fell into place.

Second, the North Carolina project. It is a simple "Mom and Pop" store situation that wanted to expand to more locations. After meeting in person, I was hired on as a full consultant to get their paperwork up to speed and then find an investor. I spent four days in their small town in Eastern North Carolina USA. I lived and breathed their project. I had a conversation with the "Mom and Pop" principal about the large Cambodian project and the difficult time frames working with the CEO because of his practices etc. To my astonishment, the "Mom and Pop" principal said, "He forgot where he came from". Correct. "He forgot where he came from".

This hit me like a ton of bricks. I thought about the small town in Pennsylvania USA where I was raised. I thought about the actor Jimmy Stewart who was from my town and donated major money for our well being. I thought about shaking Jimmy's hand when I was 11 and wanting to be just like him. I thought about how the community where I lived relied on each other and hired one another professionally to gain success in building their dreams. I thought about all of the people who helped me achieve my own success from this small home town and smiled knowing that I have not forgotten my roots.

I watched the "Mom and Pop" principal shake everyone's hand and say hello as we traveled in his area. He obviously knows where he came from and how to make it work for him.

As most of you who know me realize, I have been extremely fortunate in my profession to meet people from all around the world based on my hard work. To those who are high powered CEO's or have a large project in the multi-millions of dollars, I cannot stress that the small projects are just as important as yours because of one aspect---success---it is critical to everyone's survival. "Never forgetting where you came from" is the base of the success model we all need.

You can read more about Rich Cocovich in the MEET THE CEO section of the Global Star Capital website (