Because they don't want to micromanage them. Grant-givers aren't bosses and NGOs aren't businesses; they're charities.

Businesses need to be run for-profit, so that the market is the boss.

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the other bizarre thing about the grants is that they all pretty much seem to be for clients, and nothing is about getting a concept for a business off the ground

cloudfodder is one exception i know of

I think nostr.build also had a grant and managed to actually launch from there.

And Damus. Say what you will, but Will actually seems to want to make legit money.

damus has a revenue model?