How to set prizes for a hackathon

Start from what you want teams to build, then design prizes that reward it. Decide your prize types first, then divide the pool across a small number of tracks and places. Keep the rules simple enough to explain in one slide, publish them before the event starts, and do not change them once it begins.

What are prizes for?

Prizes send a signal. Teams are likely to read the prize list as a statement of what you value, and build toward it. Before you set any amounts, write down what you want from the event:

• More entries, or fewer, stronger ones?
• Projects that use a particular API, model or dataset?
• Work that continues after the event?
• A welcoming event for beginners?

Each goal points to a different design. For example, a prize for the best use of a particular API invites teams to try that API. A beginner prize gives newer builders a reason to enter. A prize that includes support after the event appeals to teams who want to keep going.

Which prize types should you consider?

You can mix several types. Each has trade-offs worth thinking through.

Prize type	Good for	Watch out for
Cash	Clear value, easy to compare	Paying winners in different countries; eligibility questions
Compute or API credits	Helping teams keep building	Credits that expire quickly or only suit one stack
Hardware or devices	Memorable, visible on stage	Shipping and delays for online winners
Expert time or office hours	Teams who want to grow the project	Needs a real time commitment from the people giving it
Follow-up support (pilots, introductions)	Projects with a future beyond the event	Vague promises that never happen
Recognition (a feature, a showcase, a demo slot)	Low cost, adds visibility	May not be enough on its own

Non-cash prizes work best when they are concrete. For example, "a meeting with our team" is weaker than "a 30-minute session with our product lead within two weeks of the event." State what credits are worth and how long they last.

How do you structure tracks and places?

One simple structure has two layers:

• Overall places, judged across all entries.
• Track prizes, one per theme or challenge, judged only among entries in that track.

Keep the number of tracks small. In our view, too many tracks spread the pool thin and leave teams unsure where to submit. Decide whether a team can win more than one prize, and say so in the rules.

You can also add one or two special prizes, such as a prize for a beginner team. Add them on purpose, not to fill space.

How do you divide the prize pool?

There is no single correct way to divide a pool. A few rules of thumb:

• Make the top prize clearly bigger than the next one, if winning outright is what you want to reward.
• Keep track prizes large enough to change what teams choose to build.
• Consider setting aside part of the pool for support after the event, if you want projects to continue.
• Match prizes to the effort you ask for. A week-long event asks more of teams than a weekend.

Below is one simple option you could adapt. It is a sample to start from, not a recommendation and not a description of how other events divide their pools. Change every line to fit your goals and budget.

Prize	Sample share of pool
Overall first	About a third
Overall second and third	About a quarter combined
Track prizes, divided across tracks	About a third
Special prizes	The remainder

If your goals differ, your split should too. An event focused on one sponsor's API might put most of the pool into that track. An event for beginners might spread prizes more evenly.

What should the prize rules cover?

Clear rules prevent disputes. A sample checklist of points to settle and publish before kickoff:

• Who can win.
• How prizes are shared within a team.
• How projects will be judged, and by whom.
• Whether a team can win more than one prize.
• How and when prizes are delivered, and in what form.
• What happens if a winner cannot accept or is disqualified.
• Expiry dates and terms for credits and other non-cash prizes.

Prizes can raise legal and tax questions, such as who is eligible and what winners must report. Ask your legal team or advisers to review the rules before you publish them.

How do you deliver prizes well?

Announce winners when you said you would. Contact them promptly with clear next steps. Deliver within the window you promised. For follow-up prizes, name a contact person and book the first session quickly. How winners are treated after the event is likely to shape how people feel about the next one.

Where to go next

Organizers can host a hackathon on Starfield Labs, and partners can sponsor events. To see a range of events and how they present their challenges, browse current hackathons at starfieldlabs.ai/events.