I'm hosting our second hackathon (http://hackathon.launch.co) in three weeks in SF. Last year's winner was accepted to YC and invested.
This year we're going to invest $50k in each of the two winners and then syndicate to my angellist syndicate (which is now $775k) if the founders want to do that.
any thoughts/questions?
I feel you'll have to be careful around folks bringing in products they've already been working on and trying to pass them off as weekend hacks. But I'm sure you and the other judges will be smart enough to tell the difference. :)