Personally I do not agree with the government throwing a bunch of money at things, it creates a loop of nonsense, people milking the cow while the fun lasts. This can be seen and heard on the ground level here. Throwing money at companies is something Tekes has done for ages with established companies in Finland, like Nokia. The startups are just the hot thing now so money is flowing there.
This leads to the fact that the startup scene is hyped in general.
Please note that this comment is quite specific to Finland.