Now that President Barack Obama’s economic stimulus package has been out for a while, including $50 billion aimed at alternative-energy initiatives, applying for grants has become the rage for high-tech startups. I applaud the initiative, and encourage startups in this direction, but there are costs.
In the US, many entrepreneurs see grants as “free money,” since they are not loans and don’t have to be repaid. A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors.
To read the full, original article click on this link: Startup Professionals Musings: Government Grants are Not as Free as You Think
Author: Martin Zwilling
