Product details

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Abstract

This is part of a case series. This case describes the background to an upcoming negotiation between a Chinese social entrepreneur (Jamie Zheng) and a venture capitalist (Chris Liu). Case (B) presents the perspective of Chris, who, on a personal level, likes Jamie's idea of helping the elderly. However, as a traditional venture capitalist and an agent of XYZ Capital, Chris understands the importance of investing in firms based on their potential profitability. Therefore, Chris needs to ensure a sound return on investment, which includes some control over how the firm makes financial decisions in the future. Students will be asked to play the role of either Jamie or Chris and negotiate on how they can come to an agreement on the venture capital firm's potential investment in Smart Health and what degree of control the venture capital firm should have over Smart Health, in order to ensure it meets its financial obligations. They must haggle over one issue-social purpose. The key question for this negotiation is: How does one reach a deal when there is more than just a financial incentive at stake? How does one negotiate when the social purpose of the firm is among the issues at hand? Students will be asked to play the role of either Jamie or Chris and negotiate on how they can come to an agreement on the venture capital firm's potential investment in Smart Health and what degree of control the venture capital firm should have over Smart Health, in order to ensure it meets its financial obligations. They must haggle over one issue-social purpose. The key question for this negotiation is: How does one reach a deal when there is more than just a financial incentive at stake? How does one negotiate when the social purpose of the firm is among the issues at hand?

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
China

Featured company

XYZ Capital

Featured protagonists

  • Chris Liu, Managing Director
  • Jamie Zheng, Founder and CEO

About

Abstract

This is part of a case series. This case describes the background to an upcoming negotiation between a Chinese social entrepreneur (Jamie Zheng) and a venture capitalist (Chris Liu). Case (B) presents the perspective of Chris, who, on a personal level, likes Jamie's idea of helping the elderly. However, as a traditional venture capitalist and an agent of XYZ Capital, Chris understands the importance of investing in firms based on their potential profitability. Therefore, Chris needs to ensure a sound return on investment, which includes some control over how the firm makes financial decisions in the future. Students will be asked to play the role of either Jamie or Chris and negotiate on how they can come to an agreement on the venture capital firm's potential investment in Smart Health and what degree of control the venture capital firm should have over Smart Health, in order to ensure it meets its financial obligations. They must haggle over one issue-social purpose. The key question for this negotiation is: How does one reach a deal when there is more than just a financial incentive at stake? How does one negotiate when the social purpose of the firm is among the issues at hand? Students will be asked to play the role of either Jamie or Chris and negotiate on how they can come to an agreement on the venture capital firm's potential investment in Smart Health and what degree of control the venture capital firm should have over Smart Health, in order to ensure it meets its financial obligations. They must haggle over one issue-social purpose. The key question for this negotiation is: How does one reach a deal when there is more than just a financial incentive at stake? How does one negotiate when the social purpose of the firm is among the issues at hand?

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
China

Featured company

XYZ Capital

Featured protagonists

  • Chris Liu, Managing Director
  • Jamie Zheng, Founder and CEO

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