Growing Up in China: The Financing of Babycare Ltd.
Teaching Note No.: 5-206-083
Posted: 18 Aug 2006
Date Written: 2006
The CFO of this infant nutritional products company must choose among competing financing offers. The interplay of Chinese legal and customs restrictions and venture capitalists' bargaining techniques challenge the CFO to navigate a tricky negotiation and to devise a unique business model given these constraints. The case provides a valuation exercise and highlights the ways in which venture capital and entrepreneurial finance differs in emerging markets.
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