[jfoutz]

Not sure american idol the best example. Don't the "winners" usually get signed on the judges labels? Simon Cowell does this, it's really pretty brilliant. get paid to make them popular via the TV show, get paid producing the albums after you make them a star. If you squint your eyes right, all those contestants are getting angel funding, the top 12 get VC funding and the winner gets an IPO. The producers lose a little money at the angel level, break even to decent money at the mid tier, and rake in some serious dough once the album comes out.

I get your point, but you should pick a contest that isn't hit driven like VC money is. Starting a company isn't like the Olympics, for sure.