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Joining A China Startup. But That Boat Sunk!

By Dan Harris on Posted in China Business, Recommended Reading

Andy Mok has a guest post up today on TechRice, entitled, “Time to Join a China Startup?” Though the title of the article ends in a question mark, the article itself makes clear Andy is of the view that now is indeed the time for start up companies in China. I am not so sure and, in fact, the photograph he used to accompany his article makes me wonder if it is all just an April Fool’s Day joke.

Let me explain.

At the top of the article is a prominent picture of the trimaran vessel, M/V ADY GIL. I immediately recognized that boat both because it is so distinctive and because I spent about a year of my life very much involved with it. The ADY GIL was built by Peter Bethune. Peter Bethune and that boat eventually joined up with the Sea Shepherd Conservation Society to use that boat to try to stop Japanese whalers from killing whales. Peter Bethune was eventually arrested for interfering with the whalers and had his case tried in Japan. My law firm represented the Sea Shepherd Conservation Society in that case because the Sea Shepherds (our client) were funding Peter Bethune’s defense. The following are some of the more interesting articles on that case and on my involvement with it:

But here’s the kicker: Pete Bethune’s charges all stemmed from his having boarded one of the Japanese whaling vessels to present the Japanese whalers with a multi-million dollar invoice for the sinking of the ADY GIL. The boat is gone. Sunk. No more. Kaput. 

So did Andy use that picture of the ADY GIL to show what can (and so often does) happen to startup companies in China or did he simply not realize what had happened to it?

Either way, I think it serves as a good counterpart to Andy’s rah rah article on startup companies in China. Andy makes the following two points to advance his thesis:

  1.  Private companies are thriving in China. Private companies are the ones making the big profits.
  2.  Loans to smaller private companies are on the upswing.

Andy concludes his article by noting how the small business water is now fine:

Given all this, the risk-reward trade-off of joining a startup seems to be tilting very favorably toward doing so. If you’ve been thinking about taking the plunge, come on in, the water is just fine.

For what it’s worth, the entire crew of the ADY GIL escaped death and only a few suffered from relatively minor injuries. What will be the fate of those who invest in Chinese startups? Is now really the time or is that sort of investment just a fool’s game? What do you think?

 

 

  • China Newbie

    Quote: “Now is indeed the time for start up companies in China. I am not so sure and, in fact makes me wonder if it is all just an April Fool’s Day joke”.
    Why do you believe that Dan? What’s wrong with starting up in China right now?

  • http://www.allroadsleadtochina.com allroads

    Dan.
    Not sure if the article is a April fools or not (looks pretty genuine to me, but never know), but I don’t see anything wrong with joining a start up in China… particularly if you are joining a firm whose mission you believe in, are joining a firm that you will potentially learn something value from/ contribute to, etc.
    Right now, there is a lot of money in the system, and what that means (for firms who are pitching domestically) is that good ideas (and some half baked ones) are getting funding. Which, depending on where you are in the US, and to whom you are pitching, may yield a very different result.
    At the same time, were I a freshly minted MBA whose options in the States/ Iceland may be limited, I am not sure how working for a Chinese startup would necessarily be a bad option either…
    R

  • http://www.chinastartupjobs.com Andy Mok

    Hi Dan,
    First, thanks for writing about my post. I appreciate you taking the time to read it and offer your observations. FYI, it’s also on my blog http://www.chinastartupjobs.com
    To answer your question, definitely not an April Fool’s Day joke. About the photo, I didn’t realize it had such a rich history (was just looking for a cool looking boat as a visual for the post). Glad you pointed it out though and wish I were indeed that subtle in getting a point across.
    About my thesis, yes, I do believe now is great time to join an *established* startup in China for the following reasons:
    1. The private sector is increasingly vital in China
    2. More and more capital is available (mainly as VC investment, not bank loans)
    3. A booming economy offers greater margin for error
    Note that there is a big difference between starting a company and joining a startup. To start a company requires a idea and the ability to profitably execute on that idea as well as the ability to scale, secure financing, etc. Joining a proven startup allows one to face a smaller subset of the risks and challenges of starting a company.