Pitch competitions are beauty pageants

Business competitions play a role in startup ecosystems, but it’s up to each founder to decide if the juice is worth the squeeze.

Founders are constantly asked to perform, pitch, and show their horses. Apply for this grant or that accelerator. Upload this, upload that. Compete in this contest or that showcase. In return, founders get a vague promise for exposure, skills, and “introductions to investors.”

It’s up to each founder to carefully weigh the pros and cons of entering a business competition awkwardly structured like beauty pageants. 

The critical question for a founder: Given that we ultimately want to win in a competitive marketplace of buyers and sellers, will this other business competition be a distraction, a time-suck ego rub, or a genuine opportunity? 

For some founders, a business competition feels safe and less risky because the rules and requirements are clear. It’s nice to play in a sandbox with less ambiguity: a founder knows precisely where they stand, win or lose. 

The “rules” of the marketplace of buyers and sellers aren’t always as clear. 

Winning a business/startup competition does not guarantee success in the marketplace. Losing a business competition doesn’t translate into winning or losing in the market. They are literally different worlds. 

It’s good for a local ecosystem to create visibility, celebrate startup innovation, and promote founders. Business competitions can help. On the other hand, the marketplace of actual buyers and sellers is where it matters most to win or lose.

If you’re a founder who wants to win (per your definition), choosing which games to play is the most important strategic question.