HomeResearch & Knowledgeback to HomeFinanceback to Research & KnowledgeNovartis Venture Fund: Valuation dilemmasback to Finance

Case Study

Novartis Venture Fund: Valuation dilemmas

By Benoit F. Leleux, Victoria Kemanian, Atul Pahwa and Katrin Siebenbürger Hacki

9 pages

May 2006

Order this case study

Reference: IMD-1-0242

The Novartis Venture Fund is considering investing into a start up,Genedata, and must take into account the valuation analysis by boththe start up as well as Venture Valuation — an independent boutiqueorganization that specializes in valuing high growth potential startups.NVF uses the Venture Valuation inputs to determine how best tostructure the next round of financing for Genedata and the caserequires the reader to discuss and analyze pricing, further financingrequirements, and exit strategy for the fund.

Keywords

Valuation, Start-up, Venture Capital, Pharmaceuticals, Investment Strategy, Fund

Settings

Switzerland
July 1999

Type

Field Research

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Genedata
Novartis Venture Fund: Valuation dilemmas
Venture Valuation AG: The genedata assignment

This case study is part of a series

Genedata
Novartis Venture Fund: Valuation dilemmas
Venture Valuation AG: The genedata assignment

Genedata

By Benoit F. Leleux and Atul Pahwa
Case reference: IMD-1-0240 ©2005

Summary

Venture Valuation conducts an independent valuation of Genedata, a Swiss start-up company in order to help Novartis Venture Fund analyze and struct...

Reference IMD-1-0240

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Browse all topics

Novartis Venture Fund: Valuation dilemmas

By Benoit F. Leleux Victoria Kemanian Atul Pahwa and Katrin Siebenbürger Hacki
Case reference: IMD-1-0242 ©2005

Summary

The Novartis Venture Fund is considering investing into a start up,Genedata, and must take into account the valuation analysis by boththe start up ...

Reference IMD-1-0242

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Browse all topics

Venture Valuation AG: The genedata assignment

By Benoit F. Leleux Victoria Kemanian Atul Pahwa and Katrin Siebenbürger Hacki
Case reference: IMD-1-0241 ©2005

Summary

Venture Valuation conducts an independent valuation of Genedata, a Swiss start-up company in order to help Novartis Venture Fund analyze and struct...

Reference IMD-1-0241

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Browse all topics

Keep reading

Article

AI in Finance Function Gives CFOs Speed, Scale and Control

AI in finance function helps CFOs drive speed, scale and governance, reshaping decision making and productivity across core financial processes.

Digital Finance Leadership

By Salvatore Cantale, Konstantinos Trantopoulos and Michael R. Wade

in I by IMD

Article

Rethinking Europe’s capital markets strategy - Sweden

Boosting European capital markets by increasing retail participation, default pension enrollment, and equity investment through Sweden’s model.

Societe Generale Market Capitalization Turnaround

Societe Generale market capitalization surged after restoring financial discipline, cutting costs strategically and protecting innovation to rebuild trust.

Finance

By Jean-François Manzoni

in I by IMD

Podcast

Slawomir Krupa, how can a 160-year-old bank reinvent itself?

How do you rebuild trust in a 160-year-old bank? Société Générale CEO Slawomir Krupa on discipline, fintech disruption, and tough turnaround decisions.

Finance Investment Leadership Strategy

By Jean-François Manzoni

in I by IMD

Article

Adam Smith and the miracle of your caffè latte

The Wealth of Nations remains a cornerstone of economic thought. Adam Smith’s treatise on free trade is relevant for today’s fracturing global economy.

Economics Finance Strategy

By Stefan Michel

in I by IMD

Article

Sustainability has stopped being a differentiator: Here’s how CFOs can stay ahead

CFO Raphael Savalle shows how finance leaders can embed sustainability, drive AI-led transformation, and lead with credibility and human insight.

Finance Finance Leadership Sustainability Technology Management

in I by IMD

Case Study

The Qualios transaction: Engineering a partnered buy-in

Entrepreneurship Finance Business Transformation

By Benoit F. Leleux and Konstantin Dreyer

Article

Sustainable Finance Strategy - Strategic Framework

A scenario based framework showing how banks can build a sustainable finance strategy that balances long term sustainability commitments with strong financial performance.

Finance

By Catherine Agamis and Hischam El-Agamy

in I by IMD

Article

Family firms' investment in and implementation of Industry 4.0: A social capital theoretical perspective

The fourth industrial revolution (I4.0) is critically relevant to the future of business management. In this study, we theoretically examine I4.0 investment and implementation from a social capital perspective. By explicating the various forms of ...

Family Business Finance

By Samuel Wayne Appleton, Marco Mismetti, Guido Orzes, Dominik Matt and Alfredo De Massis

in European Management Review

23 January 2026, ePub before print, https://doi.org/10.1111/emre.70043

Podcast

Inside the transition, with Pictet’s Marie-Laure Schaufelberger

IMD’s Inside the Transition explores how finance drives the energy transition, with Pictet CSO Marie-Laure Schaufelberger on credibility, capital, and ESG.

Finance Leadership Sustainability

By Julia Binder and Knut Haanaes

in I by IMD

AI in Finance Function Gives CFOs Speed, Scale and Control

By Salvatore Cantale Konstantinos Trantopoulos and Michael R. Wade
in I by IMD

Summary

AI in finance function helps CFOs drive speed, scale and governance, reshaping decision making and productivity across core financial processes.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Digital

Finance

Leadership

Browse all topics

Slawomir Krupa, how can a 160-year-old bank reinvent itself?

By Jean-François Manzoni
in I by IMD

Summary

How do you rebuild trust in a 160-year-old bank? Société Générale CEO Slawomir Krupa on discipline, fintech disruption, and tough turnaround decisions.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Investment

Leadership

Strategy

Browse all topics

Adam Smith and the miracle of your caffè latte

By Stefan Michel
in I by IMD

Summary

The Wealth of Nations remains a cornerstone of economic thought. Adam Smith’s treatise on free trade is relevant for today’s fracturing global economy.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Economics

Finance

Strategy

Browse all topics

Sustainability has stopped being a differentiator: Here’s how CFOs can stay ahead

in I by IMD

Summary

CFO Raphael Savalle shows how finance leaders can embed sustainability, drive AI-led transformation, and lead with credibility and human insight.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Finance Leadership

Sustainability

Technology Management

Browse all topics

The Qualios transaction: Engineering a partnered buy-in

By Benoit F. Leleux and Konstantin Dreyer
Case reference: IMD-2745 ©2026

Summary

The Qualios case tracks the search, negotiations and ultimate acquisition of an industrial, family-owned SME in Southern Germany. Using a variety of materials, including sophisticated composites, the company produces customized, high-quality braided sleeves primarily for technical applications. The fourth-generation owners were led to sell due to a lack of succession and health issues. A reputable niche business serving automotive, packaging, construction and industrial clients across Germany and internationally, Qualios generated €12 million in revenue and healthy EBITDA and employed around 50 staff. The company faced several issues, such as rising raw material and production costs, difficulty attracting skilled workers to the region and growing demands from customers for sustainability certifications. The potential buyer, Konrad, believed he had a joker up his sleeve with Georg, an experienced operating manager, family confidant and potential co-investor. Negotiations proved complex until the duo was able to bypass the broker and establish direct links to the seller. A deal was ultimately closed, involving not only a significant earnout element from the seller but also 90% leverage offered by local banks, with strenuous covenants. Nonetheless, fundamental questions remained after the deal: Had the buyer paid the right price and established the proper structure to ensure long-term success? Closing was only the first battle: Could Qualios grow fast enough to service the debt, repay the vendor loan and justify the price tag – all while honoring the company legacy that mattered so deeply to the seller?

Reference IMD-2745

Organization Qualios (Disguised)

Industry Manufacturing, Textile;Materials, Construction Materials

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Finance

Business Transformation

Browse all topics

Family firms' investment in and implementation of Industry 4.0: A social capital theoretical perspective

By Samuel Wayne Appleton Marco Mismetti Guido Orzes Dominik Matt and Alfredo De Massis
in European Management Review 23 January 2026, ePub before print, https://doi.org/10.1111/emre.70043

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Finance

Browse all topics

Inside the transition, with Pictet’s Marie-Laure Schaufelberger

By Julia Binder and Knut Haanaes
in I by IMD

Summary

IMD’s Inside the Transition explores how finance drives the energy transition, with Pictet CSO Marie-Laure Schaufelberger on credibility, capital, and ESG.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Leadership

Sustainability

Browse all topics