Texas Wide Open fOr Business

multimedia technology

Photo by Rita Quinn/Getty imaGes foR sXsW

Texas Wide Open fOr Business

Scott Belsky, cofounder and CEO of Behance, speaks during the Connecting & Empowering The Creative World session at the 2013 South by Southwest® Conferences and Festivals.

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digiTal ediTiOn spOnsOred By WharTOn ecOnOmic develOpmenT cOrpOraTiOn | WWW.WharTOnedc.cOm Texas Wide Open fOr Business

For 10 days each March, the entertainment and technology industries have their eyes fixed on the Lone Star State, when the annual South by Southwest® Conferences & Festivals take over every nook and

cranny in Austin.Now in its 27th year, the music/film/technology

showcase has grown from 700 participants to nearly 150,000, making it a premier event. Music, film, technology and innovation intersect over the course of a nine-day industry conference series, four-day trade show, nine-day (and night) film festival and six-night music festival that includes 2,200 artists on 100 stages.

Austin’s Economic Impact

Emerging bands, films and tech startups not only benefit from the wealth of opportunities that SXSW® offers, but also from the vibrancy of the host city. Naturally, SXSW is big business in Texas’ capital city. An economic study estimated South by Southwest delivered a $190 million impact for Austin in 2012.

“Austin is a reflection of South by Southwest and vice versa,” says Hugh Forrest, director of the South by Southwest Interactive Festival. “The event could not have grown to such a level if it wasn’t held in such an exciting city as Austin.”

SXSW Interactive accounts for much of that

Strong Sense of

DirectionWorlds of music, film and

technology collide at austin’s annual south By southWest

conferences & festivals

100 || Texas Wide Open fOr Business

100 || Texas Wide Open fOr Business digiTal ediTiOn spOnsOred By WharTOn ecOnOmic develOpmenT cOrpOraTiOn | WWW.WharTOnedc.cOm

impact, generating nearly 25,000 participants in 2012, far ahead of the 19,000 music attendees. SXSW Interactive saw modest growth until 2007, when an unknown startup called Twitter gained considerable traction at the event.

In 2009, mobile app Foursquare launched at SXSW. From then on, the event has “virtually” exploded, offering a full plate of panel sessions, awards competitions, a gaming expo, meetups, pitch events and, of course, parties.

New Ideas and Successes

Web developers, investors, lawyers, entrepreneurs, musicians and even politicians share information, ideas and business cards. “We’re continually getting the A-plus-plus list,” says SXSW Startup Village and Accelerator event producer Chris Valentine.

The innovation found in Austin year round works in tandem with SXSW Interactive, and particularly the Accelerator competition for emerging online technology.

“We have incredible, innovative people in Texas,” says Josh Alexander, cofounder and CEO of Toopher, an Austin-based startup and 2012 Accelerator finalist. “The thought and leadership that comes out of the University of Texas alone is phenomenal. And there are more and more opportunities in Texas for a startup to get funding in the early stages.”

Alexander should know. He and Toopher founder/Chief Technology Officer Evan Grim developed an online security system that authenticates a user’s identity using the location of the Toopher-enabled smartphone. After being accepted into Austin Technology Incubator’s development portfolio in January 2012, Toopher was encouraged to apply for the 2012 Accelerator competition.

The security startup became one of a handful of finalists chosen from more than 670 applicants. “South by Southwest allowed us to showcase our innovation on a larger stage,” Alexander says. “We raised $2 million through the connections we made from Accelerator.

Meredith Maycotte, chief marketing officer and founder of Umbel, works at the company’s headquarters in Austin. Founded in 2010, Umbel was one of six Austin-based startups selected to present business plans and products in the 2012 South by Southwest Interactive Accelerator. The company was able to secure investors and clients at SXSW.Photo by jeff adkins

Texas Wide Open fOr Business

digiTal ediTiOn spOnsOred By WharTOn ecOnOmic develOpmenT cOrpOraTiOn | WWW.WharTOnedc.cOm Texas Wide Open fOr Business

We can hire more people in Texas, spend money in Texas and do good things for our state.”

Another Accelerator finalist, Austin-based Umbel, acquired funding as well as some of their biggest clients through contacts made at SXSW Interactive.

Umbel, a digital audience measurement company, partners with online publishers to allow them to collect and analyze customer data via social media and other sources. In the past year, the company has evolved from bootstrapping its financing to acquiring at least $3.7 million in funding, allowing expansion into sports, entertainment and other media.

“We had a booth in the [South by Southwest] trade show and met a lot of investors and clients,” says CEO Higinio “H.O.” Maycotte. “We attended a ton of panels and parties. So much happens when so many innovative minds come together.”

The outside-the-box mindset that permeates SXSW Interactive helps push participating businesses to turn their great idea into something spectacular.

“Accelerator helped us grow up very quickly,” says Alexander. “We had to learn how to rise above the noise of an event with so many interesting facets.”

“Those 10 days in March really bring creativity to a higher level and make the city more attractive long-term,” says Forest.

Valentine agrees, noting, “Huge numbers of people move to Austin weekly. During the economic downturn we continued to grow and prosper. The city as a whole has developed.”

Story by Heather Johnson

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Comedian and author Baratunde Thurston delivered the 2012 SXSW keynote speech.

businessclimate.com/texas || 99

F or 10 days each March, the entertainment and technology industries have their eyes fixed on the Lone Star State, when the annual South by Southwest® Conferences & Festivals take over every nook and cranny in Austin.Now in its 27th year, the music/film/technology

showcase has grown from 700 participants to nearly 150,000, making it a premier event. Music, film, technology and innovation intersect over the course of a nine-day industry conference series, four-day trade show, nine-day (and night) film festival and six-night music festival that includes 2,200 artists on 100 stages.

Austin’s Economic ImpactEmerging bands, films and tech startups not only benefit from the wealth of opportunities that SXSW® offers, but also from the vibrancy of the host city. Naturally, SXSW is big business in Texas’ capital city. An economic study estimated South by Southwest delivered a $190 million impact for Austin in 2012.“Austin is a reflection of South by Southwest and

vice versa,” says Hugh Forrest, director of the South by Southwest Interactive Festival. “The event could not have grown to such a level if it wasn’t held in such an exciting city as Austin.”SXSW Interactive accounts for much of that

ENTERTAINMENT AND TECHNOLOGY

Strong Sense of DirectionWORLDS OF MUSIC, FILM AND TECHNOLOGY COLLIDE AT AUSTIN’S

ANNUAL SOUTH BY SOUTHWEST CONFERENCES & FESTIVALS

Scott Belsky, cofounder and CEO of Behance, speaks during the Connecting & Empowering The Creative World session at the 2013 South by Southwest® Conferences and Festivals.PHOTO BY RITA QUINN/GETTY IMAGES FOR SXSW

98 || texas

Texas Wide Open fOr Business

Headed in One Direction

the south by southwest® conferences & festivals is a premier showcase for emerging music, film and technology. launched in 1987 in austin, the annual event initially aimed to shine a brighter spotlight on the city’s diverse music scene. the event quickly gained popularity with acts throughout the united states to garner the attention of music industry executives and build their fan base.

in 1994, sXsW expanded to include film and interactive, allowing the multifaceted event to grow from 700 registrants in its first year to 147,000 total participants in 2012. sXsW interactive launched as its own entity in 1995. sXsW gaming launched in 2006 and the sXsW accelerator competition kicked off in 2009. sXsW recently added education and sustainability fields to the mix.

Film Festival

Trade Shows & Exhibits

Conference Attendees

= roughly 2,000 people

interactive conference

music conference

film conference

##%2,278musical acts

597international

acts

Music Festival Interactive Conference

In 2012, SXSW was directly and indirectly responsible for injecting approximately $190 million into the Austin economy.

113music festival stages

188music conference sessions

conference sessions

1,034

1,800conference speakers

133

74,955film festival attendance

films screened

57114773

approximate trade show attendance over four days

approximate music gear expo attendance over three days

65 K

20 K

40 Kapproximate gaming expo attendance over three days

sXsW trade show exhibit spaces

gaming expo exhibit spaces

music gear expo exhibit spaces