SXSW goes back to being a high networking, ideas festival for founders and VCs

The atmosphere felt different at this year’s SXSW, the annual March festival where technology meets pop culture in Austin. I was reminded of 2019’s SXSW when people packed downtown, and the lines snaked around the local businesses.

Those who attended the event said that it was the same again this year, although my friend who lives in this area and has attended it many times, admitted that something has changed. For example, the festival is now two days shorter than before. It was also “fragmented,” largely due to the demolition of the Austin Convention Center, which scattered events and panels throughout the city. That made the whole conference feel overwhelming but also a little connected.

The event is also recovering from the pandemic, where it laid off workers and spent two years without much money. It has changed hands since then and, as of this year, has adopted a new strategy.

Greg Rosenbaum, SVP of programming at SXSW, said this year, the conference’s 40th anniversary, is its “most ambitious revival” to date. He mentioned changes such as new Clubhouses, recharge, networking, and special programs, which attract 5,000 people every day. He noted that those in attendance enjoyed “so much of Austin and the city’s community.”

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

After all, there were people to meet and talk scenes. Grammy nominee Lola Young performed, Vox threw a hot party, the new Boots Riley movie premiered, and Serena Williams and Steven Spielberg headlined. (I also moderated a panel about AI and taboo topics like relationships and money, which was pretty cool if you ask me.)

Ashley Tryner-Dolce, an investor and founder, said the conference was “an amazing meeting of ideas.” Like most festivals, however, he found the most “meaningful moments” to happen at side events – like INC’s Founder House party, where he networked with other founders and CEOs.

“It’s less about the big stage and more about who you’re sitting with,” he said.

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

“If you just show up without proper communication or getting close to the rooms and important conversations, you will struggle to unlock the real value of the event,” he said, which is exactly what Jonathan Sperber, the founder who participated in the SXSW competition, also pointed out.

“The value often depends on how well you prepare,” Sperber said, adding that his team makes sure meetings are structured and have a clear entry strategy. He called it “an effective arrangement to connect with big business and other key stakeholders.”

The rumor that SXSW is dead has been around the industry for years, but that doesn’t seem to be the case. From every cohort of weary founders, there emerges a crop of fresh eyes and ambition, ready to take advantage of what lies in the wake of the festival.

For example, this was Simon Davis’ first SXSW. He said his overall view is that “it’s a press conference with a tech angle, not the other way around.” He praised the uniqueness of the event compared to other tech events (which we will stop listing).

“At SXSW, you get a much wider range of people, backgrounds, and experience levels,” he continued. “Live music programming reinforces that. It’s a completely different energy. Not another place you can go to make deals like a tech company, but a great place to share and learn.”

This year, SXSW introduced a new betting system, which meant that each person had a different experience, depending on which track badge they bought — film, music, or technology. I, for example, felt surrounded by conversations about AI and technology, and I heard some tech people talk about how the festival used to have a strong music focus (although it seemed, of course, that there were more tech-focused panels this year than music shows or film opportunities).

Congress also removed the second access that allows people with, say, music badges to enter film festivals. Instead, people had to buy an all-in-one premium badge for about $2,000. It also introduced a reservation system (queuing assistance), where badge holders have to book a time for whatever they want to do. That was true even for those with a platinum badge, like Sperber.

Because of this, he said that the festival does not feel like a place where people can show up, and he said that other events get booked up quickly and are difficult to get into. The decentralized bit also made it difficult to travel as he would have liked.

“I loved the openness and the ability to meet people from all walks of life, I really got to know the city, and some of the interactive exhibits were really fun,” she said.

Rosenbaum said the team made the decision to remove secondary access after hearing feedback that attendees wanted more “structured access to all badges, and additional benefits for Platinum badges.” They also lowered the price of the platinum badge to make the all-inclusive option more affordable. The reservation, meanwhile, will return next year, he said, citing a positive response (except for a few technical errors and energy confusion). “Of course we will adjust and refine them as needed,” he said.

Norman described it as more of a “non-controversy” now, at least in his opinion. He said the event was flexible, allowing people to move around, meet people, and then go to other places.

Rodney Williams, founder of fintech SoLo Funds, has also noticed a change, but again, not necessarily a bad one. He has been attending SXSW for over a decade and has hosted events and spoken on panels. Usually, he goes to the whole festival, but this year, he decided to go only for a few days, skipping his events and avoiding the lines.

He said that for tech founders, SXSW has “moved from an intimate, scrappy discovery environment to a high-cost, high-competitive environment,” focusing on “connecting with investors and experiential marketing” — meaning companies with big budgets can pitch bigger startups and get more eyeballs.

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

Adweek reported fewer shows overall and said there was no advertising by major tech companies. Williams explained that even with the lack of big tech companies, advertising is still a big money game.

“Companies with big marketing budgets are usually the only ones who participate, launch products, or throw expensive events,” he said. “It wasn’t always like that, and that change has taken away the opportunities for emerging technology companies that used to participate.”

Williams added, “Now, standing out requires more than just a good product, which requires significant investment that only companies with big budgets can make.”

That didn’t stop him from doing the event this year. And Norman. In fact, the organizers expected that this year around 300,000 people will come (the final numbers will not be available until April), which showed that this conference has not lost its spirit or its magic.

“I always enjoy it and I get a lot out of it,” Williams said.