Happy to answer questions here re this. I worked for the gov't on this file before starting my own company. The VC funds that sponsor are subject to internal and peer review audit.
Amount depends on VC, Angel, or Incubator stream. (There are three streams.) The reason we did it this way is because we think gov't is bad at picking good start-ups and that VCs, Angels, and Incubators are better. The funding is minimal. (As low as $25K for angels for example.) We just want people saying "this person is good, let them in" have skin in the game.
