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. 

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