Case | HBS Case Collection | September 2003

Growing Up in China: The Financing of BabyCare Ltd.

by Mihir A. Desai and Mark Veblen


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 some of the difficult questions a discerning venture capitalist might ask, requiring the CFO to justify his overall business model and working capital needs. To obtain executable spreadsheets (courseware), please contact our customer service department at

Keywords: Venture Capital; Working Capital; Emerging Markets; Entrepreneurship; Business Startups; China;


Desai, Mihir A., and Mark Veblen. "Growing Up in China: The Financing of BabyCare Ltd." Harvard Business School Case 204-029, September 2003.