Punch Tab’s Investment Opportunity

Running head: PUNCH TAB 1
Punch Tab’s Investment Opportunity
Student’s Name
Institutional Affiliation

PUNCH TAB 2
Punch Tab’s Investment Opportunity
Introduction
Ranjith Kumaran and Mehdi Ait Oufkir were the co-founders of a multimillion startup,
Punch Tab, based in California by February 2011. Both men decided to create something that
was better than their previous project. Punch Tab, a successful organization resulted from a
consultation from expert companies about their marketing strategies and how they handled their
customers online. What a huge success for Kumaran and his colleague to tap into.
Business Model and Associated Concerns
From the description of Punch Tab’s business model, the most probable business model
was the Freemium Model (Teece, 2010). This is because, the services that were offered by Punch
Tab to the customers were majorly online and at no cost at all. A long term relationship between
the receivers of the service and the givers of the service would be established in the long run.
Majorly, the entrepreneurs of this grand empire had their own potential concerns about
the business model. The plans were laid out but the execution of it would cost more than it
required. Mr. Kumaran had his doubts on the matter and wanted to make plain the requirements
of the project that he thought was not possible to acquire (Giesen, 2007). He was worried about
getting the right people to entrust with the project but that would cost him a minimum of
$500,000. It was also long before the commencement of the work since he wanted almost 9
months to carry out some experiments and fail before the actual work.
Why is it an attractive opportunity?
From the free services offered by Punch Tab, their partners are likely to be organizations
doing online marketing as well as web presence adverts. This is because it attracts investment
opportunities that have an interest in expanding the business from the traffic directed to their