I've always loved DEMO-style conferences (like the one going on in Palm Desert today) where entrepreneurs show off their creations for the first time to an audience of their peers, the press, and investors. In fact, in 1997 I did my first conference called "Meet the Alley" where entrepreneurs did 10 minutes presentations in the "demo-or-die" format (I gotta find the video tapes). We called it "Ready, Set, PITCH!" and it was a huge hit. The New York Times wrote it up... I gotta find that clip too!
Getting a presentation slot at a demo conference can really help launch a company, but the fact is that demo-style conferences have turned into cash cows for big conference companies and the small entrepreneur is now being forced to shell out tens of thousands of dollars to buy their space.
It's wrong on so many levels (as a lot of folks have pointed out).
First, the best companies would never be able to afford that fee. This means the most prommissing companies who need the exposure the most--and who the audience would most want to see--never make it to the stage. When Kevin Rose started digg he was broke--he could NEVER have afforded demo. When I started Weblogs, Inc. with Brian we were really broke (in fact Brian had taken a second mortgage to build the company!)--we could never have afforded demo. I suspect that most of the great and up-and-coming Web 2.0 companies wouldn't have been able to cut that $20,000 check (or $12,000 as the case may be). I don't think a YouTube, TechMeme, Blogger, StumbleUpon, or CastFire could afford the ticket when they were starting up.
Second, even the good companies that make it to the stage have to spend around $20,000 to pay for their six minutes! What a rip-off.
Back in December I was kicking it on Sand Hill road trying to get my groove back after leaving AOL. After a day of meeting with VCs I called my friends Steve Gillmor and Mike Arrington to see if they were up for a steak dinner.
Over dinner Mike and I talked about our equal disdain of the payola model, and I encouraged Mike to start a conference series. I explained to him the things I'd learned about doing conference from back in my Silicon Alley Reporter days. Our biggest conference did $2.6M and cost $600,000 to run--and we never asked anyone to pay to get their speaking slot. Of course, those numbers were during the crazy boom years.
After dinner we went for a long walk and smoked some amazing (NOT) Cuban cigars :-). Mike asked me if I would help with the conference and I figured what the heck--I loved running conferences, I love Mike, and our industry needs a conference that isn't in on the take.
So, it's with great pride that I announce that Mike and I are partnering on a conference series called "The TechCrunch 20." The concept is simple: 20 companies will present over two days to their peers, the press, VCs, and the industry.
All companies will be selected by a committee of expert entrepreneurs, journalists and analysts on THE QUALITY OF THEIR PRODUCT not their ability to write a check.
If two guys in school show us the next digg, stumbleupon, or YouTube they're getting a slot and their going to pay $0 for it.
If the folks over at StumbleUpon, digg, PodShow, or Odeo show us some amazing new product they're planning on launching they get a slot--and they pay us $0 for it.
We really want the audience to get 20 presentations that are just amazing. No duds is the goal. To ensure that we have no duds the selected companies are going to show us their final products and presentations 10 days
before the event, and in the case that their demo is not ABSOLUTELY BRILLIANT we are going to replace them (we'll have 2-3 alternates waiting in the wings for this purpose).
How will we make money off the event? Well, frankly we don't need to make too much money, and we think the ticket sales and a couple of top level sponsors (i.e. one law firm, one tech firm, one VC firm, and one accounting firm) will cover things.
The details are being worked out as we speak. Here is what we know so far:
1. It will be in the San Francisco area.
2. We will have around 250 people at the event.
3. 20 companies will present over two days.
4. The event will take place in the fall.
5. We are looking for a location that can fit 250-500 people. We arehoping we can find a a University that would host the event, or an affordable conference center. Any ideas please let me know.
6. We hope to put together an advisory board of people we really respect to suggest companies.
How can you help?
a) We need a great location.
b) We need top level sponsors who believe in giving the little companies a chance to shine.
c) We need suggestions for companies who will want to break big news in the fall.
I can't tell you how excited I am about getting back into the conference business, and I really honored to be doing it with Mike and his team at TechCrunch.
If you want to email the "20 conference" team the email is 20 at techcrunch.com.
all the best,
Jason
Taking the payola out of DEMO-ing: The TechCrunch 20 Conference (or, I'm back in the conference business baby!)
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Reader Comments
(Page 2 of 2)22. Amen to that idea. What's been missing from conferences is a strong content team that keeps junk out of the program. Just because big companies can pay large fees gets them on stage, much to the dismay of paying attendees.
I second the idea that we need one of these in the NYC area. Innovation is everywhere!
Posted at 3:45AM on Feb 1st 2007 by Kris Tuttle
23.
Just back from Pack City, could this be The Sundance of Web 2.0?
Posted at 4:41AM on Feb 1st 2007 by Stephen McCormack
24. Tom Fragala, my gut tells me that at the very least both models are equally flawed. One trades in hard currency while the other will trade in the currency of sycophancy :)
Posted at 8:54AM on Feb 1st 2007 by Rick
25. A DEMO alternative run by people who care about startups is a great idea. I know a company that I looked at investing in that spent $20K last year, had a great 6 minutes, and you've never heard of them. The pay to play model does work only if it simply covers costs and doesn't generate enormous profit margins from the startup companies alone. Sponsors are fair game. I've been a judge at many business plan competitions and elevator pitch sessions and the best companies were the ones that didn't pay, but the idea and team was so solid that they were invited to pitch.
20 Game-Changing Startups is a tall order, but I'm sure that a Jason and Mike can find them.
One suggestion that might be helpful is to crowdsource the voting for a few of the slots. You have to be an editor to make sure that what you're getting is good enough, but letting the attendees decide on one or two might get the companies who don't make it some exposure.
Also, has anyone suggested SecondLife as the simulcast/online venue?
Posted at 9:56AM on Feb 1st 2007 by Marc Nathan
26. congrats jason (& mike), sounds like a great idea :)
while i respect the work chris & folks do to put together DEMO, i did also wonder if the price was a bit high. still, the quality of their program is pretty good regardless.
full disclosure: i'm helping co-chair the Web 2.0 Expo conference (http://www.web2.expo.com), and altho i'm not running LaunchPad (http://www.web2expo.com/pub/w/53/launchpad.html), i do know the folks involved. the fees are lower than Demo ($12K), however it's not exactly a pay-to-play scenario, since only about 10-15 companies will be selected.
still, i applaud your efforts to come up with a no-cost merit-based system. it will mean a little more work on your end (or by your judges / advisors) to help filter for the best companies, but i think you're right it's certainly doable and the costs / profits can be covered / made elsewhere.
good luck to both of you, and looking forward to the event :)
- dave mcclure
http://500hats.typepad.com
Posted at 10:09AM on Feb 1st 2007 by dave mcclure
27. This is a great idea, count me in!
IMHO, the main benefit to most participants will be the chance to get the input from seasoned professionals. Most emerging companies are lured by the chance to freely showcase their application, and neglect their duty to listen to professionals and refine their solution according to market input. The early stages of the product lifecycle are the most cost-effective times to question the fundamentals of the business model! These types of events, grant us - the drivers of small companies, the chance to converse with others who have traveled the road once or twice.
Looking forward to hearing more,
Shuki
Posted at 12:48PM on Feb 1st 2007 by Shuki Lehavi
28. Having organized conferences more than few times myself (I'm in the process of selecting a venue and dates for MeshForum 2007 at the moment) I would suggest that you look seriously at some venues outside of the city - I'm seriously looking at some retreat centers.
The reason?
So that you get people away from their offices and other distractions - and your event then continues into the evening - the conversations over dinner and then sitting around (likely with some drinking involved) have, in my past experience, been the ones that lead to very real and tangible results.
For example - it was an event such as what I just described that I met the developer with whom I am launching at least one, and very likely two new companies this year.
So that's my suggestion - though i can also see a very valid and strong argument for holding the event in San Francisco - and then holding larger, open to many more people, events in the evening(s) around the day long sets of presentations.
Posted at 2:25AM on Feb 2nd 2007 by Shannon Clark
29. Jason,
With just one convenient call to the San Mateo County Convention & Visitors Bureau, I would be glad to work with you and your group to pre-select lodging and meeting facilities based on the type of atmosphere you're looking for. We cover from Stanford to the San Francisco border. A customized RFP is immediately sent to qualified properties, and you will have answers directly back to you with-in 24 hours. We represent over 130 hotels, three convention facilities and several banquet facilities from which to choose!
Feel free to email me to further discuss all the options we have available. Teipo
Posted at 2:34PM on Feb 2nd 2007 by Teipo Brown
33. Media roundup of TechCrunch 50 vs. DEMO
http://techleaders20.blogspot.com/2008/04/arrington-demo-needs-to-die.html
Posted at 2:14PM on Apr 3rd 2008 by Alex Hammer
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21. Many startups with good idea and product may not want to waste $10-15k for a single demo conference. I wouldn't spend this kind of money because I could have invested in other areas that I can build a better product or bring in revenue.
I support your model.
Getting space from University Auditorium for 2 days in fall would be hard because schools start in August. It would be hard to give out their space for 2 consecutive days.
I suggest to hold the conference in South Bay instead of SF because it is just difficult to find parking in SF and it add more cost for startups staying in hotel in SF.
Our web organization would support your conference. Let me know if you need any help.
Posted at 2:38AM on Feb 1st 2007 by Bess