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Learn about the rise and fall of Xcor CEO Michael Blum

Learn about the rise and fall of Xcor CEO  Michael Blum

As a boy, Michael Blum dreamed of becoming an astronaut and traveling to space! As a young man, he left his Hong Kong home and went to study Economics and International politics at one of the most prestigious universities in the USA and worldwide – Yale. Even if his studies had nothing to do with it, he never forsakes his boyhood dream and became determined to travel to space one day.

Space Friendships

After graduation, he quickly managed to find the first employment and from that moment his business career was only ascending. Working for various business giants, such as PayPal, Ernst & Young, etc Blum managed to create a little fortune and make important friendships. Among others, he met Sir Richard Branson, an eccentric entrepreneur who started Virgin Galactic with the idea to create spacecraft that will enable people who are not astronauts to travel to space. The two become close friends and Blum thrilled by the project invested around $200.000 by purchasing a ticket. In this period he also befriended an Irish businessman who was also involved in the project, P.J King.

XCor

All of Branson’s attempts to go out of Earth’s orbit failed as we know, but this didn’t discourage young Mr. Blum. He got himself a position in the managerial team of spaceflight and rocket engine company Xcor and after some time climbed to the position of CEO. Blum planned to send different spacecraft on the mission as he was convinced in the success he started selling tickets even before the first trials were made. He was managing for several years to delay the inevitable but years ago many of the people who paid for the tickets started asking for reimbursement as it is clear that this project won’t work either.

The money was however spent on other things, and this is when Xcor’s financial troubles began. Blum, who up until that point was seen as a respectable businessman, asked money from different investors. Nonetheless, the much-needed support never came and the company had to declare bankruptcy.

It is believed that investors refused to give their money because Blum on one had lost credibility by making several wrong financial decisions. Another reason, as some say, lies in the fact that his connection and partnership with P.J King raised suspicion about his involvement in various illegal activities. Other businessmen didn’t want their money to be connected with illegal things so they never gave money and withdrew previously made investments.

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