I would not use 99designs for, say, a whole website.
I would be very wary of design submissions that are stolen or plagiarized from other sources.
But for simple transactional work, like a new logo or wordmark, I think it's the way to go. The fact is, most tech startups probably don't benefit that much from "focused attention" to small graphical flourishes. You are probably not Twitter, and the birdie probably isn't going to make or break you.
Also: how'd you end up needing your money back? Don't you have to accept a design to end up spending money?
As the site is very busy, the best designers might be ignoring your contest. What you can do is visit lots of other contests, and pick out the artists whose submissions you really like. Invite them personally to submit in your contest.
The moment I started inviting the best artists I could find, my contest took off and the logo I ended up with is smokin' hot.
99designs is for when you need just the first two. Choosing these can often be a reasonable choice for a lot of cases.