Jamie Zheng is the Founder and CEO of Smart Health, a Shenzhen-based social enterprise specializing in developing intelligent healthcare products for the elderly. In particular, the Smart Health Medicine Watch which can remind the wearer to take medication, make an emergency call, and communicate with family members and healthcare professionals is its core product. Smart Health has five patents based on Jamie’s design of the Smart Health Medicine Watch for this market.

Three months ago, this product was launched in the Chinese market with great success, generating average monthly revenue of RMB¥100,000[1]. However, Jamie thinks that this product can benefit from substantial modifications to make life easier for the elderly. The next step is for the company to continue spending on research and development in order to refine the product. To achieve this goal, Jamie is seeking a first-round investment of ¥5 million for a 20% share of the company.

Five different institutions and individuals have approached Jamie with offers. Two of them are being seriously considered by Jamie. One investment company is offering ¥4 million for 20% of the company but Jamie is concerned that this investor is mainly concerned with maximizing profits and may abandon the social purpose of his enterprise, namely to help the elderly. The second offer is from an impact investor. The impact investor is offering ¥3 million for 20% of the company. Jamie is not keen to accept this second offer as it is too low even though he appreciates the support of his social purpose.