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Comment by pg | Hacker News Reader

I wonder if they've thought this through. No really promising startup would go through all this just for a 1/n chance of $50k.

This is structurally different from raising investment. An investor tries to fund (as far as they can tell) all the good startups that approach them. Here there is only one prize. Which means the better the applicants, the more likely you're wasting your time applying.

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As you say, there's little work involved until you become a finalist. And if you become a finalist, I would think the minimum $5k + publicity is a good tradeoff for the trip to Seattle.

A couple of other contests (Adobe, Facebook) were ridiculous because entering the contest, not even winning it, required signing away significant control of your web app and letting the sponsors make derivative web apps.

I am not sure I understand: seems to me all work you have to invest initially is to fill in a one page form? Making it among the finalists, even if you don't win the grand price, you get some exposure, get to present to VCs, and hopefully have some fun. Where is the downside, except for having to make your idea public?

Grand Prize $50,000 Cash

Prizes for 4 Second-Prize Finalists

$5,000 in AWS Credits A professionally developed video, filmed at their place of business, and posted on Amazon's website Exposure and promotion on Amazon.com and AWS websites Promotion in contest press release and other press activities Airfare and hotel accommodations in Seattle to meet and present to Amazon and Judges Panel Featured at the AWS Start-Up Challenge Awards Dinner in Seattle, WA with Amazon executives, industry leaders and VCs

http://www.amazon.com/gp/browse.html?node=377635011

The form might only take a day; the real time suck is for the finalists.

"An investor tries to fund (as far as they can tell) all the good startups that approach them."

Is this your strategy with YC? There has to be some limit (x) on the number (n) of companies you can take on, making YC a x/n for 5000 + 5000founders, no?

There probably is some limit to our capacity, but I don't think we're at it yet.

awesome.

I would like to add one more thing... The startup/company should already be using their web services. I am not sure if they consider a good idea that potentially could use their web services.

Great point. It reminds of a lot of scholarship applications. It sounds good, until you realize your chances. In some cases for scholarship money, you're better off trying to create your own wealth through a job or business idea.

I don't know how to ask this and not sound ironic...I hope it doesn't.

Do you believe they would ignore a good startup and not invest in it even if they didn't win a prize?

I was only talking about the prize aspect of it. The rest is impossible to evaluate. All they say is that they'll make an offer of investment. That could either be good or worthless, depending on the amount, the valuation, and other terms.

FWIW, my guess is that they'd err on the side of ignoring good startups. Amazon has not so far been in the investment business, and I don't think that is their goal here. Their goal is to promote AWS to startups. They're raising the prospect of investment because they know that's something many startups are interested in.

Amazon has invested in at least one startup: http://www.techcrunch.com/2007/02/25/amazon-invests-in-shelf...

Whether or not it's a good startup is another question.

I believe they also own a piece of 37signals

No, Bezos.

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