SXSW is emerging as the best networking and ideas festival for founders and venture capitalists

The atmosphere was 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 crowded downtown, and snake lines formed from local projects.

Attendees said that was the case again this year, although my friend, who lives in the area and has attended several times, admitted some things have changed. For example, the festival is now two days shorter than it was before. It was also “decentralized”, mainly due to the demolition of the Austin Convention Center, which resulted in events and panels being distributed throughout the downtown venues. This made the whole conference seem less stressful but also less involved.

The event is also still recovering from the pandemic during which staff were laid off and it went two years without much income. It has traded hands since then and, as of this year, has adopted a new strategy.

The conference’s 40th anniversary this year was its “most ambitious reinvention” yet, said Gregg Rosenbaum, SXSW’s senior vice president of programming. He pointed to changes such as new recharging clubs, networks and special programs that attract 5,000 people a day. He noted how attendees were experiencing “more of Austin and the downtown community.”

For the tech founders I spoke to at least, the conference remains extremely valuable, and everyone had the same advice: conferences like this, you get what you give.

After all, there were people to meet and circles to talk to. Grammy nominee Lola Young performed, Vox threw a hot party, the new film Boots Riley premiered, and Serena Williams and Steven Spielberg delivered keynote speeches. (I’ve also moderated a panel discussion about AI and taboo topics like relationships and money, which is pretty good if you ask me.)

Ashley Trainer Dolce, investor and founder, said the conference remains a “fantastic gathering of ideas.” However, like many festivals, I’ve found that “meaningful moments” happen at side events — like INC’s Founder House party, where I networked with other founders and executives.

“It’s not so much about the main stage as it is about the person you’re sitting across from,” she 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 founders with opportunities and attended some film screenings and dinners.

“If you attend without the right connections or proximity to important rooms and conversations, you will struggle to uncover the true value of the event,” he said, which is exactly what Jonathan Sperber, the founder who participated in the SXSW pitch competition, also expressed.

“The value usually depends on how prepared you are for it,” Sperber said, adding that his team took care to arrange meetings and develop a clear strategy. He described it as “an effective framework for communicating with large organizations and other key stakeholders.”

Talk of the death of SXSW has been swirling around the industry for years, but that doesn’t seem to be the case at all. For every batch of tired founders, a batch of fresh and ambitious eyes emerges, ready to take advantage of what lies in the wake of the festival.

For example, this was Simon Davis’ first SXSW. He said that his general impression was that it was “a media conference from a technical angle, and not the other way around.” He praised the diversity of the event compared to other technical events (which we will just mention).

“At SXSW, you get a much wider range of people, backgrounds and experience levels,” he continued. “The live music programming enhances that. It’s a completely different energy. It’s not a place you would necessarily go to do deals as a tech company, but it’s a great place to engage and learn.”

This year, SXSW introduced a new badge system, meaning everyone has a different experience, depending on which track badge they purchased — film, music, or tech. For example, I felt surrounded by conversations about AI and technology, and heard other people in the tech space talking about how the festival once had a stronger music focus (although it certainly seems like there are more tech-focused panels this year than music screenings or film opportunities).

The conference also eliminated secondary access that allows people with music badges, for example, to enter film events. Instead, people had to purchase the all-inclusive premium badge for about $2,000. It also introduced a reservation system (to help with lines), where badge holders had to reserve a time for whatever they wanted to do. This was true even for those with a platinum badge, like Sperber.

As a result, he said the festival didn’t feel like a place where anyone could attend, and noted that some events were booked up so quickly that it was difficult to get into. The decentralized part also made it more difficult to get around than he would have liked.

“I loved the openness and being able to meet people from all life experiences, really understand the city, and some of the interactive exhibits were very interesting,” he said.

Rosenbaum said the team made the decision to eliminate secondary access after hearing feedback that attendees wanted more “simplified access via badges, as well as more benefits for platinum badges.” They’ve also lowered the price of the Platinum badge to make the all-in-one option less expensive. He added that reservations will return next year, noting the positive feedback (except for some technical errors and confusion in capabilities). “We will definitely modify and improve it as needed,” he said.

Norman described it as more of a “non-conference” now, at least from his perspective. He said the event was more flexible, allowing people to move around, meet people and then go elsewhere.

Rodney Williams, co-founder of fintech SoLo Funds, has also noticed a change, but again, not necessarily a bad one. He has been going to SXSW for over a decade and has hosted events and spoken on panels. He usually goes for the entire festival, but this year, he decided to go for just a few days, holding his own events and avoiding the lines.

For tech founders, he said, SXSW has “moved from an intimate, volatile discovery zone to a high-cost, highly competitive space,” with an emphasis on “engagement with investors and experiential marketing” — meaning companies with big budgets can do big activations and get more attention.

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

Adweek reported fewer glasses overall and said there was an absence of ads from big tech companies. Even without big tech companies, advertising is still a big money game, Williams explained.

“Companies with huge marketing budgets are usually the only ones that participate, launch products, or organize expensive events,” he said. “This was not always the case, and this shift has taken away opportunities from the tech startups that used to participate.”

“Now, standing out requires more than just a great product, it requires a significant marketing investment that only companies with huge budgets can afford,” Williams added.

That didn’t stop him from throwing a party this year. Norman either. In fact, organizers expect around 300,000 people to attend this year (final numbers won’t be available until April), revealing that the conference has not lost its power or charm yet.

“I always enjoy it and make the most of it,” Williams said.