Winners could expect to receive some cash and, for a lucky few, follow-up meetings with venture capital investors. The Internet Economy changed all that.
Today there are at least two dozen contests in the United States alone.
They're sponsored not only by leading business schools but also by graduate departments of engineering, venture capital firms, management consultants and angel investors. As the trend has grown, the stakes have gotten higher. With real seed capital at stake, it's easy to see why they want in. More than the cash, students are in it for the experience it gives them writing a business plan, creating a team and interacting with potential investors. Universities are eager to provide students with real-world training to prepare them for the outside world and, though few admit it on the record, to keep star students from leaving before they graduate.