I agree with you completely, however the article does say:

"Bouganim says that he and his investors are looking to pour funds into companies that demonstrated that they know how to work with government, whether that's understanding how to slide under the procurement limits that trigger mounds of paperwork or make use of cloud computing in a way that works within government's often-strict security requirements.

So it seems as if they are looking to invest in companies that have already made it into the walled garden of government contracting.