Question: 1. Analyze Tans strategic decision to fund the venture without seeking venture capital from others. What were her reasons for the decision? Is the decision

1. Analyze Tan’s strategic decision to fund the venture without seeking venture capital from others. What were her reasons for the decision? Is the decision correct, in your view? 

2. What strengths and weaknesses does Yumcha have?

3. Given the development and expansion of multiple social networking websites since Tan prepared her initial business plan, how can she differentiate her services?


Set in November 2007, the case is about a soon-to-launch social networking website (Yumcha) in Australia intended for the country's significant Asian population and diaspora. The case describes the process that Yumcha's founder went through in establishing the entity, including her initial motivations and business rationale. The case goes on to describe the dilemma facing the founder in choosing a web developer for the site, including whether to source the developer from new online bidding platforms. The challenges involved in this relatively new means of sourcing and bidding for technical talent are presented. The case also outlines the strategy questions facing the founder concerning expanding the social networking venture in an external environment that has seen the rapid development and expansion of numerous other social networking websites.

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1 Tan made the decision to avoid venture capital in order to avoid losing ownership control of her venture to avoid debtrelated covenants and also to avoid being beholden to the agendas of her investo... View full answer

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