← Back to Grant Overview

Grant Pitfalls & Co-founder Alignment

What to resolve before the application · Updated March 15, 2026

1. Budget Caps Are Negotiable, Not Fixed

KEY INSIGHT The 25%/15%/10% figures in the regulation are reference starting points, not hard limits.

From the regulation (Section 6): percentages can change based on project goals. Every line item must be justified (value, timeline, budget). The evaluation committee can negotiate amounts within their ceilings to better reflect the project.

CategoryReference %Reference Max (42K)Reality
Staff/salaries (gross incl. taxes)25%~10,500Negotiable upward if justified
Expert services / R&D / testing10%~4,200Negotiable
Sales & marketing15%~6,300Negotiable
Goods & services for developmentNo cap listedHardware, SaaS, app store fees
General expenses (subscriptions, tools)No cap listedCloud, domains, monitoring
IP protection (patents, trademarks)No cap listedTrademark registration

Pitfall: Assuming staff is hard-capped at 25% and building the budget around that. The sole developer IS the primary cost — argue for a higher staff allocation in the application.

2. Salary vs. Equity Tradeoff

The business plan prices development at $50/hr (market rate). For the grant, the realistic rate is $20/hr (Albanian market). This changes everything:

ScenarioMonthly PayEquity8mo Total Salary
A 50% equity, $20/hr$3,20050%$25,600
B 33% equity, max salary$4,00033%$32,000
C 33% equity, side project$1,50033%$12,000

3. Vesting: Equity Is Earned, Not Gifted

Without vesting: someone quits after 2 weeks and keeps 33% forever.

With vesting: equity unlocks over time. Leave early = keep only what you earned.

Standard structure: 4-year vesting, 1-year cliff, monthly thereafter.

PeriodWhat happensEquity earned (of 33%)
Month 1-11Cliff Nothing vested yet. Leave = 0%.0%
Month 12Cliff vests 25% of total equity unlocks at once.8.25%
Month 13-48Monthly vesting ~0.69% per month.+0.69%/mo
Month 48Fully vested Full equity earned.33%

The grant covers 8 months, but the company lives longer. Vesting should match the company's timeline, not the grant's.

4. Deliverables: Promise Conservative, Deliver Adequate

CRITICAL You define your own deliverables in the application. The committee approves them. Then you're held to what you promised. Over-promising to score higher = under-delivering at tranche reporting.

The grant evaluates a Phase 2 (validation) startup. They expect market validation, not a finished product.

What the state expects

What the state does NOT expect

Conservative deliverables per tranche

Tranche 1 — 30% (~12.6K EUR)

After contract signing

Translation: "we started"

Tranche 2 — 40% (~16.8K EUR)

After phase 1 + financial report

Tranche 3 — 30% (~12.6K EUR)

After final financial report

No real transactions promised — banking integration depends on partner timelines outside your control. Document the effort, not the outcome.

5. Grant Contract & Liability

The regulation (Section 22-24) specifies:

UNRESOLVED Questions for the meeting:

6. Exit Scenarios

DEV EXITS

CO-FOUNDER EXITS

PROJECT DIES

GRANT NOT AWARDED

7. Realistic Grant Budget (at $20/hr)

ItemCost (EUR)Category
Developer salary — 8 months gross20,000-25,000Staff
Mac for iOS builds (Albanian market price)900-1,200Goods & services
Test devices (iPhone SE + Android)600-800Goods & services
Cloud infrastructure (8 months)500-1,000General expenses
SaaS tools (Sentry, email, monitoring)500-800General expenses
App Store + Play Store fees~125General expenses
Design (Albanian freelancer)1,500-2,500Expert services
Security audit / external testing2,000-4,000Expert services
Marketing / merchant acquisition3,000-5,000Marketing
Legal (LLC + contracts)1,000-2,000General expenses
Trademark / IP filing200-400IP protection
Domain, certs, misc200-400General expenses
Total30,500-43,125

FITS At $20/hr, the project fits within the 42K EUR grant. The budget is honest and justifiable — not padded, not wasteful. The committee scores "budget appropriateness" (10 pts).

8. Hardware: Use Albanian Market Prices

PITFALL The business plan doc uses US retail prices. Albanian/EU prices are 30-50% higher due to import markups, VAT, and no Apple Store presence. The grant committee knows local prices — US pricing looks uninformed.

ItemUS PriceAlbanian Market Price
Mac Mini M2$600-800€900-1,200
iPhone SE (test device)$400-500€450-600
Android mid-range (test device)$200-300€200-350

9. The 15% Co-financing Question

Grant covers 85%. The remaining 15% (~6,300 EUR) must come from the founders.

Eligible sources: personal funds, operating revenue, private investment, equity financing, or any legal source excluding other state funding in the same fiscal year.

RESOLVE IN MEETING Who pays the 6,300 EUR? Split equally (2,100 each)? Proportional to equity? One co-founder covers it? This needs an answer before the application.

Updated March 15, 2026 · Based on Grant 2026 Regulation (Rregullore e Thirrjes Grant2026, Versioni 1, Shkurt 2026) + co-founder meeting prep