Since it obviously works for government contracts ...
Not so long ago, our great government promised to award more IT contracts to small businesses and/or startups. This implies that "If the startup failed to deliver, the scheme [i.e. the government] would pay the first customer [also the government] the contract value".
Since the government has roundly failed to award more contracts to smaller suppliers, perhaps the whole principle of providing government backing to startups isn't all that wise.
Besides, any businessperson knows that landing the first contract is easy; it's the second one which proves far more difficult.