

Amazon Web Services $100,000 Startup Challenge - dirtae
http://www.amazon.com/gp/browse.html?node=377634011

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pg
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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Tichy
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?

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eusman
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>

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imgabe
In addition to the $50k cash and $50k credit for AWS. The winner is also
offered a business loan from Amazon described as such:

"Amazon.com, Inc. or one of its affiliates also will offer the first prize
winner a loan in order to bring its Business Proposition to market (the
"Investment Offer"). The Investment Offer would be in the form of a promissory
note on terms to be determined by Amazon.com, Inc., in its sole discretion,
including the conversion of such promissory note to equity in a future equity
financing."

Now, I don't speak fluent legalese, but isn't this a lose-lose deal for the
entrepreneur? It sounds like if your business flops, it's a loan and you have
to pay it back, but if it succeeds, Amazon can convert the loan to equity and
make out with much more then they would have by having the loan repaid.

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pg
There's nothing sinister about this. It probably just means they'd invest as
convertible debt, which is very common (possibly the default) for angel
investments. You wouldn't have to pay it back if the startup failed, and the
conversion would be into a predetermined number of shares.

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byrneseyeview
Why is it more common? One would expect angels and VCs to tend the other way
(buying options and warrants, instead of making loans).

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pg
It's only nominally a loan. I think the main attraction to angels is that it
protects them from VCs. They convert into the series A round alongside the VCs
as the same class of investor.

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alex_c
Only open to people/businesses in the US.

Ah well.

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thomasswift
damn. from the official rules - First prize gets: "one-hour mentoring sessions
from an AWS Technical Expert (ARV $500)"

I need to become an AWS Tech Expert.

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rms
Sounds more like they are overvaluing what they are giving away in this
contest for tax deduction purposes.

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vegashacker
I'd consider submitting an application, except that the deal-breaker seems to
be, "The Amazon judges' panel will review all applications and choose five
finalists, based on ... implementation of pay-as-you-use Amazon Web Services."
We'll certainly might use AWS in the future, but in prototype building mode,
it seems like AWS would be a premature optimization.

By the way, I wonder if they are looking particularly for startups that use
AWS in novel ways, as opposed to promising startups that just happen to use it
on the backhand for scalability.

~~~
vegashacker
The VirtualMin folks might be good candidates for this contest since they have
what seems to be a slick integration with Amazon's Elastic Computing Cloud
(<http://news.ycombinator.com/item?id=52916>). I know they're already YC'd,
but it seems like it'd be a minimal time investment since they're already
launched.

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joshwa
You have to make your idea ("in whole or in part") public if you become a
finalist-- you're required to make a "finalist video" to post online to be
voted on.

Votes don't count towards judging, though the judges will be aware of the
votes.

Incidentally, is there any data available as to the survival/success rates of
startups who won these types of business plan competitions?

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Andys
I think this would be an awesome opportunity to build an ebay killer with the
financial and management backing of Amazon.

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eusman
Jeff Bezos is in the game?

