On (Startup) Chile

#1

Post by ew » Wed, Dec 28, 2011, 5:44 PM UTC

Re: On (Startup) Chile

#2

Post by ojbyrne » Wed, Dec 28, 2011, 6:24 PM UTC

This is sad, if true (and it kind of rings true). As soon as I saw the reimbursement policy I got the sense that the program would be bullshit. I'd love to hear otherwise.

Re: On (Startup) Chile

#3

Post by prateekdayal » Wed, Dec 28, 2011, 6:35 PM UTC

We are currently working on http://supportbee.com in Startup Chile.

I spent some money from my Indian company's account when I was coming over but I could print out a few documents to prove it and it was done in 20 mins. Atleast that is no longer an issue here.

It does take about a month for the first reimbursement to roll in and you have to manage till then. The account executives (the ones handling your reimbursement) are quite friendly and willing to help (by giving you a date sooner if you are really running out of money etc).

The only case I have heard of someone having to give back money is of a guy who smashed his phone on stage during a presentation and had the cost of the phone, 400 dollars reduced from his $40k grant (or may be next reimbursement). I was not present in that meetup and I have never met the guy.

Startup Chile does have some problems (or starting troubles) but certainly reimbursements is not one of them. Also, they provide a great office space which is a great place to work with your team and meet other entrepreneurs. I would be happy to answer any questions here. Ofcourse, I am only two months into the program so my experience with everything is limited so far.

Re: On (Startup) Chile

#4

Post by ojbyrne » Wed, Dec 28, 2011, 6:40 PM UTC

prateekdayal wrote: post #3

We are currently working on http://supportbee.com in Startup Chile. I spent some money from my Indian company's account when I was coming over but I could print out a few documents to prove it and it was done in 20 mins. Atleast that is no longer an issue here. It does take about a month for the first reimbursement to roll in and you have to manage till then. The account executives (the ones handling your reimburseme…

So the other post suggested that paying yourself was problematic. Can the money be used for living expenses (essentially the largest expense for any software-related business)?

Re: On (Startup) Chile

#5

Post by prateekdayal » Wed, Dec 28, 2011, 6:48 PM UTC

ojbyrne wrote: post #4

prateekdayal wrote: post #3

We are currently working on http://supportbee.com in Startup Chile. I spent some money from my Indian company's account when I was coming over but I could print out a few documents to prove it and it was done in 20 mins. Atleast that is no longer an issue here. It does take about a month for the first reimbursement to roll in and you have to manage till then. The account executives (the ones handling your reimburseme…

So the other post suggested that paying yourself was problematic. Can the money be used for living expenses (essentially the largest expense for any software-related business)?

Yes. The rules are very clear about that. You get 800 USD as single team member and USD 1200 if you are two or more. Also for upto three team members, you can take USD 700/month per member salary. The office space (with snacks, coffee etc) is free for upto three team members. Your tickets, Visa fees, Medical insurance etc is all reimbursed.

Re: On (Startup) Chile

#6

Post by crcsmnky » Wed, Dec 28, 2011, 6:53 PM UTC

While the reimbursement policy is certainly (quite) troublesome and extremely annoying, I'm more concerned about the climate/environment in Chile once the program ends.

More countries need to foster entrepreneurial endeavors with a solid mix of residents and non-residents (almost like an exchange program) to get a better global mix of problem/market/solution. Startup Chile appears to be a good first step at addressing this.

However if Startup Chile didn't create a strong ecosystem (including investment and other support) then there's a risk that an increasing number of companies will fail once the program ends. Programs with high failure rates won't survive and have less chance of being funded in the future.

Hopefully Startup Chile is capable of adapting and addressing these concerns and other incubator/accelerator outside of long standing startup environments (e.g. SF, NYC) can learn from this example.

Re: On (Startup) Chile

#7

Post by herval » Wed, Dec 28, 2011, 6:54 PM UTC

prateekdayal wrote: post #3

We are currently working on http://supportbee.com in Startup Chile. I spent some money from my Indian company's account when I was coming over but I could print out a few documents to prove it and it was done in 20 mins. Atleast that is no longer an issue here. It does take about a month for the first reimbursement to roll in and you have to manage till then. The account executives (the ones handling your reimburseme…

I'm the author of the post. And I was here at HN, 4 months ago, defending it EXACTLY like you are now :)

Re: On (Startup) Chile

#8

Post by ykomada » Wed, Dec 28, 2011, 6:56 PM UTC

Startup Chile is a great program, but Herval's post is completely accurate (I was in his cohort there building pingpigeon.com). Drawing down on the funds takes a lot of paperwork and time and negotiation, when the government bean counters inevitably find some random reason to disagree with you.

The money is there for you to get it; Startup Chile is not "Bullshit". But once a month, the time and emotional energy spent in getting the money takes away from your ability to focus on your startup. Raising vc/angel money is the same: your company gets put on hold while you raise the round. Think of Startup Chile reimbursements as the same but on a much, much smaller scale, six times over six months.

Re: On (Startup) Chile

#9

Post by herval » Wed, Dec 28, 2011, 6:59 PM UTC

ojbyrne wrote: post #4

prateekdayal wrote: post #3

We are currently working on http://supportbee.com in Startup Chile. I spent some money from my Indian company's account when I was coming over but I could print out a few documents to prove it and it was done in 20 mins. Atleast that is no longer an issue here. It does take about a month for the first reimbursement to roll in and you have to manage till then. The account executives (the ones handling your reimburseme…

So the other post suggested that paying yourself was problematic. Can the money be used for living expenses (essentially the largest expense for any software-related business)?

You have to register at SII, get a taxpayer code and file taxes before the 10th day of every month. So it is straightforward indeed

This is quite clear now - in our round, it was an "open issue" for 3 months, over which only a select few were able to get a salary (due again to personal relations - I was one of the benefitted ones in that case). So that's "excusable" - they were "figuring it out"

Re: On (Startup) Chile

#10

Post by ew » Wed, Dec 28, 2011, 7:17 PM UTC

ojbyrne wrote: post #2

This is sad, if true (and it kind of rings true). As soon as I saw the reimbursement policy I got the sense that the program would be bullshit. I'd love to hear otherwise.

The program is not bullshit, it's just that the government isn't in the business of throwing money away. There a lot of legitimate startups here that have gone from an idea to a proper product with actual customers. There is, however, a lot of red tape to cut through in order to ensure that money is spent properly, that's why there's so many rules.

It would look really bad if the government of Chile was seen to be funding vacations. Unfortunately, that happens anyway. There are a bunch of people participating in the program that have done fuck all for the last six months and have little more to show for themselves than a Twitter account and some nice photos of the parties they've been to.