Kevin Starr is a good friend and someone I respect a great deal. He’s a surfer, doctor turned investor focused on impact over monetary returns. He’s got one of the best heads in the business, and I tend to agree with most of his assessments.
I don’t completely agree with his recent article for the Stanford Social Innovation Review titled, “Dump the Prizes: Contests, challenges, awards—they do more harm than good. Let’s get rid of them.”
Let me caveat this by saying that I do agree with most of what Kevin talks about with prizes:
- It wastes huge amounts of time.
- There is way too much emphasis on innovation and not nearly enough on implementation.
- It gets too much wrong and too little right.
- It serves as a distraction from the social sector’s big problem.
If you’ve read his article (please do), then you’ll notice that I agree with Kevin on every salient point he makes. Where we disagree is due to the blinders that come with Kevin’s position, an omission due to perspective, not intellect or experience.
Why then are prizes worth it?
Simply because prizes serve as a filtering mechanism for new, young and unknown startups to be found. A method for recognition when a voice is too small to be heard.
It’s hard for people with money to understand this. It’s hard for companies that have had some success to remember it.
When you’re brand new, have a prototype and just a small bit of penetration with your new idea or product, it is extremely hard to be taken seriously or to get noticed. Being at the award event gets you in front of people. Winning it helps validate the concept and people with money start taking you more seriously.
This outlook comes from my own experience. As Ushahidi, way back in the early days of 2008, we were part of the NetSquared Challenge, where David and I walked onto a stage and pitched Ushahidi for a whopping 2 minutes (crazy short!). A day later we walked out with $25,000 – which allowed the newly formed organization to become a reality. It tided us over until we received real funding from Humanity United 3 months later.
I’ll add two more points of my own – one of contention, one opinion:
Contention: I remember, when Ushahidi was just 8 months old, winning a prize. This was the last prize we ever applied to be a part of, as I realized that it was only $10,000 and that the cost of the award ceremony alone was more than all the prizes added together.
Opinion: When an organization gets the initial recognition and wins a prize or two, they should remove themselves from that world of smaller prizes. Applying (and even winning) a bunch of small awards takes time and energy, and it has decreasing value over time – both for recognition and for bottom-line value.