Validation is important, no question.
But just keep in mind that I've been at this quite a while, and the number of times the person's material having placed in a contest factored into my reading and how good the script ultimately was/was not has been very minimal.

2 scripts in recent memory, writer's CV prominently mentioned having placed in contests I was personally not familiar w; the quality of what I ultimately read made me question the nature/substance of those contests

from my POV/experience: cannot recall a time any rep has ever mentioned a script's placing in a contest, unless it was Nicholl's/Austin/Blacklist etc. and they were #1 or top few

what a writer def could/should spend time thinking about: "Who does Rep X or Prod Y know that is a mutual & might love/stump for/reach out on my behalf my screenplay".

the key is: WHO is reading and giving thumbs up? WHO does a Rep, Prod, Exec trust?

and then, you have things like Ehren Kruger's ARLINGTON ROAD, and every time the Nicholl's Fellowship comes up at all, that's the movie i think about. (an amazing script)

a flip side: if you do not end up placing in a contest, the fact it comes down to perhaps 1 or maybe 2 readers - and you have NO idea those readers' tastes or moods when they're reading your work - DO NOT take it to heart. You'll drive yourself crazy & it's not worth it

what if they don't like horror & that's what you sub'd? research all u can on a contest, what their brand is, who their readers are if possible - is it a brand you'd want, need on your race car y'know? again: validation is imp. but some kinds are ult more useful than others