As an alternative RPEM-Rigged Perpetual Earnings Machinations being foisted on North American financial markets by Hedge Funders and Private Equity firms, I am going to highlight some real venture capitalists. These are financiers that are NOT doing the latest financial no risk sure thing to existing large corporates that have fallen into stock market disfavour (currently RPEM Stratgems are the Private Buyout with Employee Slash+WorkOverload plus Asset Selloff and Debt Equity Ramp Up but the machinations vary with time and conditions for the quickest possible “turnaround”). These are true Venture Capitalists who are doing major start-up work, adding to employment, and risking their capital in that some of these ventures (even with guidance from the Vneture Capitalists) simply do not pan out and large losses are taken. Contrast this with Hedge Fund and Prvate Equity venture that leave a corporate with all of the original corporate stakeholders(most of the employees, local governments, customers, suppliers,bondholders) with exeption ofshorterm
Silicon Valley of course has been the source of much true Venture Capital. Much of the money has been spent in computing and electronics but of late Venture capitalists even from the IT oriented Silican Valley are making bigs bets in genetic-based drug and health processes, energy alternatives, and nww materials and methods. Venture Capitalists use iterative methods – going through rounds of financing as the emerging firm proves out each stage by bringing an expanding set of product+services to market. Some VCs confine themselves to finacing and milestones setting while others also take on some mangerial functions depending on the needs of the emerging firm. But the key VC idea is to develop new markets and profit from the often large intial margins and growth rates that make a profitable coming to market for a broad set of players: employees as well as top management, key suppliers, and access deals (to setting goals and standards or maybe key commitments to product at set prices)for key customers as well.
Contrast these methods with the Grind and Finacial Manipulation that is hedge funding and private equity buyouts. In effect, US capital markets are having a war over how mone is to be best made – and right now the low risk bearing Hedgeand Private Equity have set up systems that reward low managed risks with outsize rewards. In effect, US Capital Markets have turned the Risk/Reward (the more the Risk the greater the Reward) on its head and are doing an Exxon Mobil – only invetsing in 40% ROI sure things – which for the time being is in oil. But of course if ExxonMobil continues that for much longer – they will decline. Not the same apparently for Private Equity which sees their monopoly control over capital returns (just new methods) as for ever perppetuated.