EyeGen, which has developed a dye that makes DNA visible to the naked eye, was named the first-place winner, and was awarded $30,000. The startup will use the funding to find lab space and start operations.

The two runners up were Centrata and Mazu Networks. Each received $10,000 prizes. Centrata's software enables computer owners to sell their unused computer resources, such as processor cycles and network bandwidth. Mazu Networks' connection management device will provide customer management and billing for Application Service Providers.

While the cash awards are attractive, the true value of the competition is the exposure it gives young entrepreneurs and their ideas. The event finals are attended by dozens of corporate and venture capital leaders, many of whom bring their checkbooks to lock up promising plans.

In its 11-year history, the MIT $50K Entrepreneurship Competition has spawned more than 50 companies with a combined market value of $10 billion. Previous winners include Akamai Technologies, Direct Hit and Firefly Networks.