I'm a little dubious about the value of this. Most technology professionals can probably save $1000 to start their own business if that is sufficient. But it seems an odd middle point--- not enough to do anything substantial, too much to pay for your first few months of web hosting. By contrast, the Stanford BASES E-challenge awarded $10K to $25K to the winners last year.
Maybe it's enough to pay for an Apple SDK? But not the laptop to go with it!
Despite my better judgment, I've pledged a couple hundred dollars (of poker money!) to become one of the "trustees" and vote on who should receive grants. The trustees also agree to serve as advisors to the winners, but I'm not sure how well that will scale either.