I'm sure it happens a fair bit. I assume the backer of "THE CREW" ( "sheets" on Pokerstars) originally backed Bret Jungblut ( "gank" on Pokerstars) when he was starting out. (maybe still does ?)
Greg Raymer used to be backed online until he won the WSOP. I'm sure it happens, but probably at the higher limits. I know one of my friends has part of his play backed by his brother. But the amount between them is not over $1000, which is nothing compare to what Ted Forrest have backed people for in the past.
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Other than that I am clueless.