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.
Also - why the requirement on VC funds anyway? Shouldn't we be supporting bootstrapped entrepreneurs as well?