Awards payout more than cash

Offer validation for little or no investment

Early-stage start ups often look for validation and legitimacy, through either press coverage, or industry recognition, or partnerships with larger companies.

One way to get a stamp of approval is through awards programs that recognize growing companies and which can offer monetary rewards, recognition, investment, or just confirmation the business is on the right track.

There are no shortage of awards for Canadian startups, including the Canadian Startup Awards, the Canadian Innovation Exchange Top 20, and the Startup Canada Awards, which were handed out on Dec. 1 in Toronto.

Waterloo startup Plum has won several awards this year, both in Canada and internationally. It was a finalist at the Startup Canada Awards, one of the CIX Top 20, and it won a gold Stevie Award ( an international business award). Most notably, Plum was one of 11 finalists from more than 11,000 applicants at the 43North business competition, which came with a $250,000 investment.

Caitlin MacGregor, cofounder of Plum, said the team decided to be more proactive about applying for awards for two reasons. First, to showcase their product, a human resources platform that helps screen and match job applicants with employers, to industry leaders and through the media. Second, they hired a new marketing director with a consumer products background who s t ressed t hat credentials would help legitimize the company.

“It provides validation and credentials whether the award is financial or not,” MacGregor said. “It also shows that business leaders, influencers, and icons have acknowledged that this product is changing an old way of doing things.”

Only one of the programs — the Stevie Awards — had a fee associated with applying, MacGregor said, which meant that for minimal investment Plum has been able to gain industry attention, improve the quality of its leads, and boost team morale.

“Awards are looking for innovative products and services that can help companies. There needs to be enough data to help validate that your product is being adopted and providing more efficiencies to companies. When you see traction and exponential growth, that’s a great time to apply,” she said.

Rob Lewis is president of Techvibes, a technology publication that also provides event listings and a job board to the startup community. In 2011, Lewis launched the Canadian Startup Awards to recognize key players in the startup ecosystem. Nominations for this year’s awards are being accepted until Dec. 31.

“They are today what they were back then: a much-needed celebration of Canada’s entrepreneurs, investors, and companies advancing our nation through innovation and hard work,” Lewis said. “Too often, Canadians don’t pat themselves on the back when they do good. We’re making sure they’re honoured.”

Anyone can nominate an entrepreneur, company, or investment firm for the awards. Winners are chosen through public votes, although a panel of j udges helps select the finalists.

Past winners include startup Wattpad, investors Dan Debow and OMERS Ventures, and Stewart Butterfield, founder of Slack. Last year, there were 3,500 nominations, and more than 40,000 votes were cast.

Lewis said startups should be applying for awards programs, whether free or otherwise. “The recognition definitely matters,” he said. “It’s good for morale, it’s good for awareness, and it’s a badge of honour that never wears off.”

He said judges are looking for a combination of company history, what they’ve achieved in the previous year, and future potential.

“We want to see growth, of course, and they should be bringing real innovation to the table, and they should have an impact bigger than themselves. Are they creating ripples beyond just selling a product or service? Does this company or person have serious potential to be the Next Big Thing?”

To win awards, startups need to be detailed, showcase their data, and appeal to the judges’ pain points, Plum’s MacGregor said.

“Answer what the judges are looking for. Each question provides an idea of what they want to see. Use data as much as you can, talk about the big picture and how you fit in, show how you are making changes.

“Remember that the judges are industry leaders, they know the bigger problems companies are trying to tackle so the more you can address that and show how the product fixes it the better your results will be.”

When you see … exponential growth it’s a great time to apply