That is some pretty strong armchair folk psychology. I'd rather put the run-off-the-mill social Darwinist economics talk aside and focus on ways to evaluate a grant recipient's progress, with a positive attitude and helping them along the way. Startups also often fail, individual grants will not be different from that, and not everyone needs to be a brilliant genius to achieve something.
Maybe you're right, it's difficult to judge from that web page. It depends a lot on how they intend to carry out the funding process and the web page doesn't say much about it. I assumed it's something like Patreon, which works well for some people, I've heard.
