Startup Capital Ventures Investing In Zero2IPO Essay Example For College

Introduction

The purpose of this paper is to analyze the intention of American Startup Capital Ventures (SCV) to invest in the Chinese Zero2IPO. SCV is headed by managing partners John and Danny, both of whom have experience of geometrically increasing the revenues of technology startups. Zero2IPO is a Chinese market research firm that provides insight into the demand for venture capital in China. SCV is currently at a point of intersection of two influence figures – a prominent investor Charlie Eubanks and the CEO of Zero2IPO Gavin Ni. Both pressure SCV to invest in China and Zero2IPO specifically. Understanding the parameters that have to be considered for entering Chinese market as well as the strengths and weaknesses of SCV is essential in ascertaining the arguments for and against investing in Zero2IPO.

Parameters for Entering Foreign Markets

The first parameter that has to be considered is the availability of startups that would allow a Venture Capital firm to perform its investment work on a long-term basis. Due to the saturated status of large Asian markets, they have a common feature, which is a large presence of high-risk enterprises offering explosive growth prospects (Wen et al., 2018). However, their abundance is also indicative of a high chance of partnering with an entity that will experience only short term growth or will yield no successful return on investments. Therefore, the firm should consider how fast it can find enterprises capable of long-term cooperation.

The second parameter is the firm’s ability to handle competition. Startups in emerging markets are numerous and have a large selection of venture capital firms to choose from. This implies that in order to stay competitive in this market niche a firm has to distinguish itself among its competitors. Furthermore, China is characterized by the strong influence of state-owned enterprises, which also seek to provide startups with venture investment. This circumstance presents an additional challenge to managing competition.

The third parameter is the readiness of the firm to accept local business norms. There is a multitude of differences between ways Chinese and Americans conduct business. Cultural norms also determine how business success is classified, which can potentially lead to miscommunication between startups’ owners and venture investment firms. The less flexible a firm is in terms of adapting to local business practices, the more likely it is to impose domestic norms on local startups. If culture differences do prove too complex to be resolved, the success of the investment partnership will be compromised.

The fourth parameter is the level of governmental intervention in the economy. The more the state attempts to influence private businesses, the less control the firm will have over its investments. In extreme cases, it might take the form of the firm’s assets being frozen without an opportunity to pull out from the market. The more the firm is willing to bear such risk, the more resilient it will be towards sudden intervention policies. Considering that long-term investments spanning decades are preferable, their success is highly dependent on the firm’s tolerance to governmental meddling.

The fifth parameter is tax pressure in the chosen market. As much as regulatory practices may stimulate foreign investors to cooperate with local startups, tax policies may compromise the benefits derived from investing in highly promising enterprises. Similarly, the absence of certain taxes might encourage more intense entrepreneur activities, thus providing the firm with more partners and opportunities. Subsequently, choosing a market with a welcoming tax environment is essential for ensuring long-term profitability of venture investments.

The sixth parameter is the presence of a legal system with favorable conditions for foreign investors. Each country has laws regulating business practices on its territory. The less bureaucratic complications are involved, the easier it is for companies to cooperate. Legal system determines the status of foreign investors and outlines their restrictions and capabilities. In order to successfully invest in local startups, the firm has to be aware of its legal status and corresponding opportunities.

SCV’s Four Strengths and Two Weaknesses

The most evident strength of SCV is its geographic origin. Being an entity with a history of work with American enterprises, it possesses certain investor appeal to local startups. Generally, experienced US firms entering local markets are seen as more financially stable in comparison with local venture capital firms. For the reason of positive public perception, SCV is likely to receive a stable supply of business offers and investing opportunities. Had it not been a US enterprise, it would have likely had had more complications entering the market or getting noticed by Zero2IPO.

The second strength of SCV is its experience on the market. SCV has been operating continuously since 2005, looking for undervalued organizations and helping them generate larger revenues. By the moment, the firms turned to the Chinese market, it had already accumulated a portfolio, containing numerous successful cases. The managing partners of SCV are experienced managers with appropriate reputation. Having worked with many boards, they have knowledge of the limiting factors in any business and decisions needed to alleviate them. Any investors with such experience and expertise will receive substantial attention and be a welcoming voice in younger business settings.

The third strength is that SCV is backed by Charlie Eubanks. As he is one of the anchor investors, he is in a unique position to see the firm’s financial situation. The idea of investing a significant proportion of the portfolio in Chine belongs to him. Eubanks has comprehension of proper structure of investing portfolios as well as potential investing targets. He can offer insight into any complications and opportunities the firm might encounter in China, which John and Danny might not see on their own. Finally, Eubanks is a wealthy investor whose money are in demand by other venture enterprises, which adds further credibility to SCV.

The fourth strength of SCV is its small size, which allows it to exercise flexibility in decision-making. The firm is headed by two managing partners, thus removing the necessity to call large board meetings. All important communication can be handled via a single phone call, which is a privilege not possessed by larger entities. The fact that such a small firm has produced results comparable with larger competitors is a definite selling point that is likely to attract many business opportunities.

The main weakness of SCV is its lack of experience in China. The firm’s eye-catching portfolio consists primarily of American entrepreneurs. At the same time, an important part of SCV strategy is its mentorship ability, yet it is admitted that the managing partners are concerned with cultural differences. The lack of experience communicating with Chinese business representatives might undermine John’s and Danny’s mentorship. If at any point, SCV is not satisfied with their partners’ performance, they might impose American business practices, thus potentially creating a conflict of cultures.

The second weakness of SCV is its high dependence on third side capital and contracts. The firm experiences both domestic and foreign pressure to adjust the strategy. Charlie Eubanks exerts substantial influence on the firm since a sizable portion of SCV’s portfolio belongs to him. Meanwhile, Gavin Ni could use the offers of SCV’s competitors as leverage against John and Danny. Essentially, the managers have found themselves at a disadvantage since they have to satisfy conditions from both sides. However, the responsibility for any error will be placed solely on John and Danny.

Investing in Zero2IPO

Investing in Zero2IPO has a number of benefits for SCV. First, it is the fastest way of entering the Chinese market. The current point in time is especially advantageous since SCV has both the backing of Eubanks and the offer from Zero2IPO. As the Chinese market becomes increasingly saturated, delaying entrance will make entering the market more complicated in the future. Second, there is a small probability of the investment failing to meet its expectations. Both managers admit that their greatest concern with Zero2IPO is that it will not yield high enough return of investment, while at least some success is assured.

Third, Zero2IPO is an objectively attractive investment target due to steady growth and its sources. Three revenue streams hedge the company from any sudden financial problems. In case one source is compromised, the company will remain profitable due to income diversification. Furthermore, Zero2IPO is aware of all significant developments in the sphere of venture capital, which enables it to foresee most negative changes. Fourth, Zero2IPO has insight into the demand for venture capital among Chinese enterprises. Working with it would provide SCV with a stable supply of customers. Finally, Zero2IPO hit the broader market due to its status as a services company. Had it been a technology exclusively company, it would have had fewer chances of success.

The first argument against investing in Zero2IPO is that it is overvalued. John has noted himself that tripling its revenues is not likely, and the overall performance might be mediocre. Besides, tricking American investors into supporting overvalued Chinese enterprises is a standard practice in China. Second, Zero2IPO does not meet SCV’s criteria for the target niche. SCV specializes in technology enterprises, while Zero2IPO focuses on services, which might compromise John and Danny’s expertise. They know how to advise a company on handling issues related to technology, but are not as well-versed in services. Third, Zero2IPO is a relatively young company with an inexperienced manager, who might not be able to hit the financial target set by SCV. Finally, SCV had better alternatives where risk-reward ratio is more favorable, although they are not part of the Chinese market.

Conclusion

Altogether, it should be evident that SCV’s managers are not as interested in investing in Zero2IPO as third parties are. There are numerous risks relating to Zero2IPO’s business model and market history that dissuade SCV from partnering with it. Nevertheless, SCV does have expertise and experience that are in demand in Chinese technology market. Even though Zero2IPO is not a technology company, partnering with it will give SCV exposure to other Chinese startups, this way reaching its intended market niche. Therefore, SCV should invest in Zero2IPO, as the long term benefits outweigh the risk stemming from Zero2IPO’s potentially mediocre performance.

Reference

Wen, J., Yang, D., Feng, G. F., Dong, M., & Chang, C. P. (2018). Venture capital and innovation in China: The non-linear evidence. Structural Change and Economic Dynamics, 46, 148-162. Web.

Vicarious Trauma In Social Workers

Being a social worker is essentially draining work, but acknowledging that and still having unfettered love for the profession helps one attend to their clients in most ways, which indeed leads to a significant improvement for the clients. Burnout is mainly brought forth by the draining experience of concurrent clients who the social worker is expected to help through their trauma (Jimenez et al., 2021). One should try these coping mechanisms to lessen the hazards if they believe they may be experiencing vicarious trauma. Increased self-observation enables people to identify and track stress, vicarious trauma, and burnout symptoms.

The essential thing that helps, especially if one feels overwhelmed, is to get supervision. To avoid being duped by individuals who do not practice self-care, social workers must be supervised by someone with whom they share high-quality working methods. Taking care of one’s emotional needs is essential through nurturing self-care, relaxing, and self-soothing activities. In social work, taking care of one’s physical and mental health can assist reduce stress.

Engaging in extracurricular activities, such as reading captivating novels, listening to music, and doing yoga, promotes a healthy work-life balance. Having realistic expectations for one’s potential in social work is very important. The best course of action is to steer clear of wishful thinking and keep a safe distance from anyone in their industry who chooses not to be practical. Creating time and a safe space for oneself helps most social workers be in a stress-free mode, as they can get to focus on things that would help them feel better. The bravery of social workers admitting they need help assists them in facing their clients with more empathy and helps them shape their practice.

Reference

Jimenez, R. R., Andersen, S., Song, H., & Townsend, C. (2021). Vicarious trauma in mental health care providers. Journal of Interprofessional Education & Practice, 24, 100451. Web.

Non-Traditional Historical Research Methods

Introduction

Conducting research activities requires preparing and reviewing a sufficient evidence base, which particularly concerns the field of history. Various methods and analytical tools may be utilized, as well as supporting materials, including scholarly books and peer-reviewed documents. These types of sources provide a credible background to obtain a comprehensive picture of the events that were happening at that time and recreate the timeline of the occurrences. However, there are alternative ways of collecting data for historical research, which may be as effective and useful as traditional ones.

Non-standard sources play a critical role in the research and offer different perspectives on the subject of the study. According to Howells and Matson1, such resources include a visual representation of historical evidence, such as “photographs, drawings, films, TV or paintings.” These sources can perform a supplemental function by adding alternative versions of what occurred in the past and how this relates to the present. At the same time, although alternative research methods present wider opportunities for analysis, they create challenges for historians. For instance, as Barber and Peniston-Bird2 state, a photograph sometimes “exists in two version,” which requires identifying fakes timely and competently. However, non-traditional historical research methods may bring benefits and provide a greater scope of the past events while requiring a specific approach to their interpretation.

Microhistory

As an alternative way of studying a specific historical era, one can pay attention to the sphere of microhistory. As a rule, to study a particular subject as narrowly as possible, researchers adhere to the technique associated with analyzing the events from the perspective of historical figures, for instance, politicians, global leaders, artists, or economists. Nonetheless, between World War I and II, historians began to pay “their attention to the lives and struggles of ordinary people,” which, in turn, helped them obtain a comprehensive but not subjective picture3. Small details, descriptions of everyday life, and daily experiences contribute to discovering new insights into historical occasions. As a practical value of microhistory, one may highlight the possibility of viewing a specific time period from a completely new and more realistic perspective4. As a rule, the experiences of the elite and regular social class are distinctive, which is natural, and for quality research, historians started to consider “structural forces, mentalities, and the masses.”5 This approach made it possible to analyze the diverse sides of history by supplementing specific viewpoints with additional data from different sources, and this was a beneficial and valid practice.

At the same time, when arguing about the usefulness of alternative sources, one should pay attention to potential bias and subjectivity, which are unacceptable in such areas as, for instance, jurisprudence or law enforcement. While having authority and influence on the masses, powerful figures may serve information in their favor, such as in court cases, “to deceive and distort reality,” which is an opportunity to avoid deserved punishment6. Adler and Leydesdorff7 argue that “victims’ testimonies and memoirs can be invaluable sources” because their words are often subjective or even false. Therefore, historians should double-check the information they analyze since there is always a risk factor associated with evaluating data wrongly due to a shifted research focus caused by historical reference bias.

Everyday Life History

To understand the moods in the society of a particular historical period, researchers need to review major occasions along with the history of regular people’s lives. Port8 cites the activities performed by Emmanuel Le Roy Ladurie, a French historian, “whose reconstruction of social life in a medieval village became a model of the genre.” Such targeted work means that by studying the struggles that the regular population had to face, historians obtain “knowledge of how things interconnect”9. They study the reasons and consequences of the socio-economic events and activities that were happening among the masses.

Realizing how people reacted to the reformations, wars, or government policies contributes to identifying their morals and behavioral practices. Port10 calls it “history from below,” thereby highlighting that the focus is on the feelings, experiences, and everyday actions of the population’s majority. Ordinary people eventually can give a deep and weighty insight into the historical time period and explain all the events they witnessed personally.

Ego Documents and Memoirs

Another historical source that may be referred to as a non-traditional method of historical research is the ego document. The approach may be interconnected with microhistory, but it does not study ordinary people’s lives. This type of resource reflects the information about historical events from the perspective of one person, such as a memoir or autobiography. A self-life memoir can provide the outlook of the historical and cultural background of a particular period, and according to Smith and Watson11, who cite Nancy K. Miller, this term “captures a dynamic postmodernism in its movement between the “private and the public, subject and object”.” Norms and traditions of a corresponding era can be detected through the narration of an individual and indicate the general rules and activities of that time. Nevertheless, when using memoirs, the question of their methodological value and methods of using their information remains wide. This is explained by the fact that memoirs reflect primarily an author’s opinion on specific historical events rather than a credible and unbiased standpoint.

Photographs

Photographs may be used as research tools and are commonly considered an alternative method of delving into historical contexts. As a unique position, Susanti12 suggests the idea that all captured images are “a type or typical representation rather than as a representation of an individual.” By saying this, the author means that old and new shots are similar in appearance, despite the changed photo resolutions13. In other words, even if a physical attribute disappears, an image will remain and can be recreated in other means of art or history14. In this case, a visual object performs its function as a source of information

Pictures are as important as written or verbal historical pieces because they can comprehensively illustrate the details of specific historical periods. One can recall a portrait of a monarch, a painting of the elite depicting their lifestyle through the surrounding place and dresses, or other plots15. However, what is more important in the context of the topic under consideration is the exploratory background of photographs16. William Henry Fox Talbot, a British inventor, states that snapshots “differ in all respects, and as widely as possible, in their origin.”17 Thereby, photographs are the resources that can ensure a more precise and detailed perception of the tendencies of a certain time period, which sometimes cannot be adequately delivered by written sources.

Joining of Written and Oral Sources

Although historical resources, as a rule, are utilized independently to reveal specific pieces of information, in some cases, researchers mix two or even more source types together. This phenomenon is called mixed media, and in addition to its relevance in modern digital times, Susanti18 states that “all media is mixed media,” thereby confirming that the contemporary information environment has significantly transformed compared to the less extensive and more unambiguous historical resources of past centuries. For instance, interviews are the case of mixed media, and they may be utilized as primary data sources. Conversations can be recorded, translated, or compressed, and this opens up the possibility for the researcher to expand the range of primary information application. An interview text, supplemented with visual tools, is the form of research presentation that is currently common. Thus, in different combinations, distinctive types of resources can be mixed to supplement each other.

Conclusion

Overall, the alternative methods of research are beneficial tools to implement in the field of history. Unlike the regular means of data collection, these approaches imply gathering the necessary information expressed in different forms. Microhistory is an area that highlights the perspectives of singular individuals on the time period when they lived. The same applies to the people’s history method since the data gathered from the general population provides more details on the economic and social norms of relevant times. Considering the source from the authorities or the elite is also essential, but together with the information from ordinary people, researchers may obtain a comprehensive and unbiased picture. Ego documents and memoirs are other supplementations to the alternative historical sources because those are the pure expression of the person’s vision of the events of a certain period.

Individual stories and narratives, written or recorded, provide an opportunity to recognize the moods and activities of the population regarding certain situations. Photographs are another critical instrument of non-traditional historical research, which carry practical significance by portraying people and subjects. Distinguishing between an image and a picture helps understand a specific representation form. Finally, the sources may also be extracted due to the mixed media approach where the written and oral methods of research are combined. Interviews can be in an audio or video format, as well as written and supplemented by photographs. For productive and wholesome research, utilizing alternative methods can be helpful and provide insight into historical occurrences in a particular time period.

Bibliography

Adler, Nanci, and Selma Leydesdorff. Tapestry of Memory. Evidence and Testimony in Life-Story Narratives. New Brunswick: Transaction Publishers, 2013.

Barber, Sara, and Corinna Peniston-Bird. History Beyond the Text. A Student’s Guide to Approaching Alternative Sources. New-York: Routledge, 2009.

Burke, Peter. Eyewitnessing: The Uses of Images as Historical Evidence. London: Reaktion Books, 2008.

Gunn, Simon, and Lucy Faire. Research Methods for History. Edinburgh: Edinburgh University Press, 2011.

Howells, Richard, and Robert McGraw Matson. Using Visual Evidence. Glasgow: Hill Education, 2009.

Jordanova, Ludmilla. The Look of the Past: Visual and Material Evidence in Historical Practice. London: King’s College London, 2012.

Lüdtke, Ald, and William Templer. The History of Everyday Life. Reconstructing Historical Experiences and Ways of Life. Princeton: Princeton University Press, 1995.

Port, Andrew I. “History from below, the History of Everyday Life, and Microhistory.” Wayne State University 3, no. 5 (2015): 108-113.

Smith, Sidonie, and Julia Watson. Reading Autobiography: A Guide for Interpreting Life Narratives. Minneapolis: The University of Minnesota Press, 2010.

Susanti, Anastasia Jessica Adinda. “Let the Pictures Speak about Themselves: Contribution of WJT Mitchell on Philosophy of Image.” E-Logos 27, no. 2 (2020): 18-23. doi:10.18267/j.e-logos.475

Tinkler, Penny. Using Photographs in Social and Historical Research. Manchester: The University of Manchester, 2013.

Footnotes

  1. Richard Howells and Robert McGraw Matson, Using Visual Evidence (Glasgow: Hill Education, 2009), 37.
  2. Sara Barber and Corinna Peniston-Bird, History Beyond the Text. A Student’s Guide to Approaching Alternative Sources (New-York: Routledge, 2009), 23.
  3. Andrew I. Port, “History from below, the History of Everyday Life, and Microhistory,” Wayne State University 3, no. 5 (2015): 110.
  4. Ludmilla Jordanova, The Look of the Past: Visual and Material Evidence in Historical Practice (London: King’s College London, 2012), 213.
  5. Port, History from below, 110.
  6. Port, History from below, 112.
  7. Nanci Adler and Selma Leydesdorff, Tapestry of Memory (New Brunswick: Transaction Publishers, 2013), 19.
  8. Port, History from below, 110.
  9. Ald Lüdtke and William Templer, The History of Everyday Life. Reconstructing Historical Experiences and Ways of Life (Princeton: Princeton University Press, 1995), 15.
  10. Port, History from below, 108.
  11. Sidonie Smith and Julia Watson, Reading Autobiography: A Guide for Interpreting Life Narratives (Minneapolis: The University of Minnesota Press, 2010), 3.
  12. Anastasia Jessica Adinda Susanti, “Let the Pictures Speak about Themselves: Contribution of WJT Mitchell on Philosophy of Image,” E-Logos 27, no. 2 (2020): 22.
  13. Susanti, “Let the Pictures,” 22.
  14. Peter Burke, Eyewitnessing: The Uses of Images as Historical Evidence (London: Reaktion Books, 2008), 120.
  15. Simon Gunn and Lucy Faire, Research Methods for History (Edinburgh: Edinburgh University Press, 2011), 41.
  16. Penny Tinkler, Using Photographs in Social and Historical Research (Manchester: The University of Manchester, 2013), 87.
  17. Howells and Matson, Using Visual Evidence, 56.
  18. Susanti, “Let the Pictures,” 21.