Tag Archive: Cash Flow

  1. Kimbra_Viva
    by Angie Chang

    Kimbra Orr: Bringing Photo Gifting To A High-Growth Market

    As part of her growth strategy, founder Kimbra Orr is eying photo sharing and gifting companies like Shutterfly, Zazzle, Café Press, Costco, Walmart and Walgreens as potential OEM channel partners.

    By Sramana Mitra (Founder, One Million By One Million)

    The idea for the business came to founder Kimbra Orr in 1998 when she saw a locket that she loved. Yet she questioned why lockets are designed to tuck photographs out of sight. Orr felt that great memories should be shown off. With that thought in mind, she began designing sterling silver charms that would make gifts that people could treasure for years and pass down from one generation to the next.

    The jewelry was a hit. Today, Orr sits at the helm of Kimbra Studios, an e-commerce company that offers consumers everything from photo necklaces to bracelets

  2. BS
    by Angie Chang

    Case Study: Balance Sheet and Statement of Cash Flows (Part 2)

    By Brad Feld (Managing Director, Foundry Group)

    Editor’s note: This is a continuation from last week’s introduction to cap tables.

    When we were last with our SayAhh cofounders, they had implemented an accounting system and Jane had contributed $50,000 for a 55/45% equity split. This week we introduce two of SayAhh’s key accounting documents: the Balance Sheet (BS) and Statement of Cash Flows (SCF) showing how this investment is accounted for.

    The investments by the founders created two transactions. Since SayAhh is a C corporation that is incorporated

  3. Screen-Shot-2011-08-28-at-5.23.39-PM
    by Angie Chang

    Case Study: Introducing the Cap Table and Hiring the CTO (Part 1)

    By Brad Feld (Managing Director, Foundry Group)

    Jane and Dick, our fearless co-founders of SayAhh, have set up an accounting system and created their first set of financial statements.

    This week, they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time.

    Also, there is an important tax election called an 83(b) election that they made which allows them to recognize and pay taxes for very small income of the value of the shares. Later, if they sell, the low tax basis and capital gains tax rates result in