The atmosphere felt distinct at this year’s SXSW, the yearly March festival where technology intersects with popular culture in Austin. It brought back memories of the 2019 SXSW when crowds filled downtown, and winding lines formed outside local businesses. 

Participants indicated that the experience mirrored that of previous years, although my friend, a local who has attended multiple times, acknowledged that some aspects have evolved. For example, the festival is now two days shorter than before. It has also become “decentralized,” largely because of the demolition of the Austin Convention Center, which dispersed events and panels across various downtown venues. While this made the entire conference feel less daunting, it also contributed to a sense of disconnectedness.

The event is still bouncing back from the pandemic, during which it laid off staff and went two years with minimal revenue. Since then, it has changed ownership and, as of this year, embraced a new approach.

Greg Rosenbaum, the SVP of programming at SXSW, remarked that this year’s conference, marking its 40th anniversary, represented its most “ambitious reinvention” to date. He highlighted innovations like the new Clubhouses, designed for recharging, networking, and special programming, which drew 5,000 attendees each day. He observed that participants were engaging with “more of Austin and the downtown community.”

For the tech founders I interviewed, the conference continues to be immensely beneficial, with a common mantra: at events like this, you get what you invest. 

After all, there were connections to be made and panels to participate in. Grammy-nominated Lola Young took the stage, Vox hosted an exciting party, a new Boots Riley film debuted, while keynotes were delivered by Serena Williams and Steven Spielberg. (I also had the opportunity to moderate a panel discussing AI and sensitive topics like relationships and finances, which I found quite rewarding.) 

Ashley Tryner-Dolce, an investor and founder, remarked that the conference remained an “incredible gathering of ideas.” However, like most festivals, she noted that the most “meaningful moments” occurred during side events — such as INC’s Founder House party, where she networked with other founders and CEOs. 

“It’s less about what’s on the main stage and more about the people you’re interacting with,” she expressed. 

James Norman, managing partner at Black Ops VC, didn’t possess a standard badge for the festival. Instead, he organized an event to connect founders with opportunities and attended various film screenings and dinners.

“If you’re showing up without the right connections or access to the discussions that matter, you’ll find it difficult to tap into the event’s real value,” he explained, echoing sentiments shared by Jonathan Sperber, a founder who participated in the SXSW pitch competition. 

“The value often hinges on how well you prepare for it,” Sperber noted, emphasizing that his team ensured they had meetings planned and a clear strategy beforehand. He termed it an “effective environment for engaging with large enterprises and other essential stakeholders.” 

Discussions about SXSW’s decline have circulated the industry for years, but that narrative never truly materializes. For every set of fatigued founders, new faces with fresh ambitions emerge, eager to capitalize on the festival’s offerings. 

For instance, this was Simon Davis’ inaugural SXSW. He remarked that his overall impression reflected “a media conference with a tech angle, rather than the reverse.” He commended the event’s diversity compared to other tech gatherings (which shall remain unnamed).

“At SXSW, there’s a far broader spectrum of people, backgrounds, and experience levels,” he continued. “The live music element emphasizes that. The atmosphere is entirely different. It’s not necessarily the best setting for deal-making as a tech company, but it’s a fantastic place to share knowledge and gain insights.” 

This year, SXSW rolled out a new badging system, resulting in varied experiences based on the track badge purchased — whether film, music, or tech. I, for one, felt immersed in discussions centered on AI and technology, and overheard fellow tech enthusiasts noting how the festival historically had a stronger focus on music (though it was certainly evident that there were more tech-centric panels this year compared to music showcases or film opportunities).

Moreover, the conference discontinued secondary access, which previously allowed individuals with, say, music badges to attend film events. Now, attendees must purchase the comprehensive premium badge costing around $2,000. It also introduced a reservation system (to assist with crowd management), requiring badge holders to schedule their activities. This applied even to those with a platinum badge, like Sperber. 

Consequently, he mentioned that the festival no longer felt like a space open to everyone, noting that certain events filled up so rapidly they were hard to attend. The decentralized nature also made navigation less convenient than he would have preferred. 

“I appreciated the openness and the opportunity to meet individuals from diverse backgrounds, which allowed me to gain a better understanding of the city, and some of the interactive displays were quite engaging,” he stated. 

Rosenbaum indicated that the decision to eliminate secondary access stemmed from feedback indicating a desire for a “streamlined access across the badges, as well as enhanced benefits for Platinum badges.” They also reduced the price of the platinum badge to make the all-in-one option more accessible. He noted that reservations would be returning next year, following positive feedback (despite a few technical glitches and capacity confusion). “We’ll definitely adjust and fine-tune them as necessary,” he stated.

Norman described the gathering as more of an “unconference” now, at least from his viewpoint. He stated that the event was more adaptable, allowing individuals to shift around, connect with others, and explore different venues. 

Rodney Williams, co-founder of the fintech SoLo Funds, has also observed a transformation, but again, it’s not necessarily negative. He has attended SXSW for over ten years, having hosted events and participated in panels. Typically, he stays for the whole festival, but this year, he opted to attend only for a few days, organizing his own events and sidestepping long queues.  

He noted that for tech founders, SXSW has “transitioned from an intimate, up-and-coming discovery zone to a high-cost, highly competitive landscape,” focused on “investor engagement and experiential marketing” — implying that corporations with sizable budgets can execute grand activations and attract greater visibility. 

“If you’re new to attending or lack access to the right events or connections, it can certainly be challenging,” Williams remarked. 

Adweek highlighted a reduction in spectacles overall and noted the absence of major tech companies promoting their brands. Williams clarified that despite the lack of prominent tech firms, advertising remains a high-stakes game.

“Typically, only companies with substantial marketing budgets can participate, launch products, or throw extravagant events,” he stated. “This wasn’t always the case, and that shift has diminished opportunities for emerging tech companies that used to engage.”

Williams added, “Now, standing out necessitates more than just having an outstanding product; it demands considerable marketing investment that is only feasible for companies with deep pockets.” 

That didn’t deter him from hosting a party this year, nor did it deter Norman. In fact, organizers anticipated approximately 300,000 attendees this year (final tallies will be known in April), indicating that the conference continues to retain its momentum and allure. 

“I always enjoy it and maximize my experience,” Williams remarked.