

Ask HN: How to solve short term cash flow problem going into an accelerator? - toddrew

My startup has been accepted into Start-up Chile. The $40,000 is paid out as reimbursements so to get the money you need to first spend the money.<p>Because of this, without a $10k-15k buffer, the first few months are going to be slow to ramp up cash flow.<p>I'm getting a government severance payout soon which would cover it, but it probably won't go through until we're well through our time there. I've had a couple suggestions on the best way to solve this problem.<p>What would you do?
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chmike
I would have thought twice in the first place to join an accelerator. What do
you get in return for these $40K ? Will your startup get this money back at
least 4 to 5 times with what they offer ?

A startup should earn money ASAP and any investment should be strictly limited
to what can facilitate or increase money earning. I really doubt an
accelerator has much value in that (except YC). Note my opinion is based on
the accelerators I saw here where I live.

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toddrew
Your answer doesn't make sense to me.

Why would you have thought twice? It's $40,000 equity free seed capital they
give us.

Did you mean: What did "they" get in return for the money?

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chmike
I misunderstood. I thought the startup had to pay that.

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toddrew
That would suck!

