SXSW returns as a top networking, festival of ideas for startups and VCs

The atmosphere felt different at this year’s SXSW, the annual March festival where tech meets pop culture in Austin. I was reminded of the 2019 SXSW when people packed downtown, and snaking lines formed from local companies.

Attendees said it was the same this year, although my friend, who lives in the area and has attended many times, admitted that some things have changed. For example the festival is now two days shorter than before. It was also “distributed,” largely due to the demolition of the Austin Convention Center, which scattered events and panels throughout the suburbs. This made the whole meeting feel less organized and less organized.

The event is still recovering from the pandemic, which saw it lay off staff and spend two years without much revenue. It has changed hands since then and, as of this year, has taken a new approach.

Greg Rosenbaum, SVP of programming at SXSW, said this year, the conference’s 40th year, was a “revisionary” one. He mentioned changes such as new Clubhouses, expansion, networks, and special programs, which attract 5,000 people every day. He also noted how attendees experienced “so much more about Austin and the local community.”

For the tech startups I spoke to, the conference is still very important, and everyone had the same advice: conferences like this, you get what you give.

Besides, there were people to meet and groups to speak to. Grammy-nominated Lola Young performed, Vox hosted a hot party, Boots Riley’s new movie premiered, while Serena Williams and Steven Spielberg had keynotes. (I also managed the AI ​​team and topics like relationships and money, which was pretty cool if you ask me.)

Ashley Tryner-Dolce, an investor and founder, said the meeting was still “an amazing meeting of minds.” Like most festivals, he found the “good times” that took place at conferences – such as the INC’s Founder House party, where he mingled with other founders and CEOs.

“It’s not about the size of the field and more about who you’re sitting next to,” he said.

James Norman, managing partner at Black Ops VC, didn’t even have a proper badge for the festival. He held an event to connect with the founders of the opportunity and attended film screenings and dinners.

“If you’re just showing up without the right connections or proximity to the rooms and conversations that matter, you’re going to struggle to unlock the true value of the event,” he said, which is what Jonathan Sperber, a founder who participated in the SXSW competition, also pointed out.

“The cost depends on how well you prepare,” Sperber said, adding that his team made sure the meetings were organized and that there was a clear entry point.

Rumors that SXSW is dead have surrounded the industry for years, but that doesn’t seem to be the case. From every group of tired founders, emerge new eyes and ambitions, ready to take advantage of the events of the festival.

For example, this was Simon Davis’ first SXSW. He added that his whole idea was “a press conference with a technical flair, not the other way around.” He praised the diversity of the event compared to other professional events (which we cannot name).

“At SXSW, you get a lot of people, cultures, and events,” he continued. “Live music programs prove that. It’s a completely different energy. Not somewhere you can go to do business like a tech company, but a great place to share and learn.”

This year, SXSW implemented a new classification system, meaning that each person had a different experience, depending on the badge they bought – film, music, or technology. I, for one, felt myself surrounded by discussions about AI and technology, and I heard some technical people talking about how the festival had a strong interest in music (although it seemed, of course, that there were more formal panels this year than music shows or film opportunities).

The convention also eliminated the second option that allowed people with, say, music badges to enter the movie theater. Instead, people have to buy a one-of-a-kind badge for about $2,000. It also introduced a reservation system (queuing), where badge holders had to make a reservation for whatever they wanted to do. This was true even for those with a platinum badge, like Sperber.

Because of this, he said the festival doesn’t feel like a place for everyone to just show up, and he noticed that some events get booked up so quickly that it’s difficult to get in. The divided region also made it more difficult to travel than he would have liked.

“I loved being able to relax and meet people from all walks of life, get to know the city better, and some of the shows were really fun,” he said.

Rosenbaum said the team made the decision to eliminate the second chance after hearing feedback from attendees who wanted “better access to badges, and more benefits for Platinum badges.” They also lowered the price of the platinum badge to make the whole process more affordable. The storage, meanwhile, will come back next year, he said, citing positive reviews (apart from a few technical errors and energy confusion). “We will make changes and adjustments as needed,” he said.

Norman described it as “incongruous” now, at least from his perspective. He added that the event is flexible, allowing people to move around, meet people, and then move on to another place.

Rodney Williams, co-founder of fintech SoLo Funds, has also seen a change, but again, it’s not all bad. He has been attending SXSW for over a decade and has hosted events and spoken at panels. Usually, he goes to the whole festival, but this year, he decided to go only for a few days, throwing his events and avoiding the queues.

He said that for tech startups, SXSW has “moved from a well-known, well-known area to an expensive, highly competitive environment,” focusing on “business connections and information marketing” — meaning companies with big money can invest in big startups and get more eyeballs.

“If you’re attending for the first time or don’t have access to events or the right connections, the event can be difficult,” Williams said.

Adweek reported a few observations all and he said that there were no big advertising companies. Williams explained that despite the lack of big tech companies, advertising is still a big money game.

“Companies with a lot of marketing budgets are often the only ones that get involved, start things up, or do things of value,” he said. “It wasn’t always like this, and this change has taken away opportunities for emerging companies to participate.”

Williams added, “Now, standing up requires more than just a good product, it requires a lot of marketing money that companies with a lot of money can do.”

That didn’t stop him from throwing a party this year. Norman on. In fact, organizers expect around 300,000 people to show up this year (final numbers won’t be available until April), revealing that the convention hasn’t lost its steam or magic.

“I’ve always enjoyed it and benefited from it,” Williams said.