Silvergate Bank Required $1 million deposit to open an account

At sblock we were excited when Silvergate bank started taking customers.  We were one of the first to fill out the online application to join.  Then they informed us that we needed to deposit $1 million USD to open an account.  That for us was a red flag, and we changed our minds.  Why would a company force you to deposit a million dollars when the FDIC will only cover $250,000, we thought.