MISTAKE #1: Distributing Free Cash

Many cities attempt to attract startups, hoping that they will contribute to the development of the entire region.

It doesn’t always work out for them, mainly because they keep making three fundamental mistakes.

#Mistake 1

#Distributing free cash

Do grants attract startups? Yes, totally; but of what kind? Proponents of throwing easy money to achieve quick fixes are not in short supply. The problem is that such a strategy does not bring the desired results.  

The waste of huge amounts of money resulting from grant-based programs is still a global problem. Most of the startup programs implemented by countries and cities to attract high-quality startups to boost their entrepreneurial ecosystems are implemented without understanding how startups think, behave and grow. Therefore, they are ineffective. The most valuable businesses need someone to show them the investment potential.


Common Mistake Alert!: Your dream of becoming next Silicon Valley cannot be fast tracked by loads of cash.

Money is no substitute for the right network of clients, investors and talent, crucial to startup success. Provide startups access to these three, then back them up with well-thought-out incentives and then see your entrepreneurial ecosystem take on Berlin, London and New York!

Why is giving away free money to startups a bad idea? 

Limited understanding of Startups’ priorities often leads to a massive waste of money.

City and country governments should learn how to recognize these two types of startups to be able to design most effective programs driving entrepreneurship:

1️ – Those unable to secure investments or generate revenue even in their home markets, relying on grants for survival.

2️ – And ‘grant tourists’ whose business model revolves solely around setting up companies in different countries to chase grants.


“To design more effective startup programs, develop a unique brand and USP of your region first, then talk to startups before designing some valuable non-cash incentives. The best startups will come, stay, do business and hire locally.” – says Vikas Malhotra, Founder & CEO of Maverick Nation


Maverick Nation is a social impact company intent on helping local startup founders become global superstars.


We build startup ecosystems by seeding them with the most successful global startups. We don’t offer free money. Rather, we offer the best network of clients, business consultants, talent and local market knowledge, because that’s what businesses need to grow. And, when do grow, they start giving back to the community and, in a cascading effect, helping local entrepreneurs live out their global dreams.

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