from Hacker News

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

by toddrew on 5/30/13, 6:38 AM with 5 comments

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.

Because of this, without a $10k-15k buffer, the first few months are going to be slow to ramp up cash flow.

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.

What would you do?

  • by chmike on 5/30/13, 7:00 AM

    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.