Category: Austin (Page 282 of 318)

Hugh Forrest Cultivates SXSW As a Birthplace for Ideas

By SUSAN LAHEY
Reporter with Silicon Hills News

He’s told the story numerous times but it never makes it into print: Hugh Forrest became director of South by Southwest Interactive—possibly the largest entrepreneurial conference in the world—because he owned a computer.
When he got the gig, in 1988, SXSW was a brand-new music festival, Forrest was a newspaper publisher and the digital revolution wasn’t even a glint in anyone’s eye. Forrest, an Austin native and English major from Kenyon College in Gambier, Ohio, had started an alternative newspaper in town, The Austin Challenger.
“The most alternative thing about it was the publishing schedule,” he quips.
He’d started the paper several years before, burning through borrowed money when his father—his primary investor—convinced him that his typesetting costs were killing him and he needed to get a computer. Forrest bought a MacPlus, a LaserWriter Plus and Pagemaker 1.0 and managed to keep the paper alive, despite competition from its friendly rival, The Austin Chronicle.
Then in 1988, Nick Barbaro of The Chronicle decided that with nearly a thousand SXSW registrants, the event needed a computer. And Forrest had one.
“I originally got hired because I had a computer and they didn’t,” Forrest said. “So I was the tech person. And seven years later when they launched multimedia (Interactive) everybody said ‘He knows computers because he has one. So he should head up this thing.’ “
And that’s how Hugh Forrest became director of a conference that has grown like some geek teenager on steroids. What was once the red-haired stepchild of SXSW Music and Film has outpaced both, fueled by the digital revolution. It covers 15 campuses, about a thousand panels and tens of thousands of attendees. Not to mention the parties.
Forrest—who has a liberal arts background–always envisioned the event as a place where a diverse community of creative people from various disciplines could cross-pollinate and birth new ideas, solutions, inventions and relationships. It wasn’t about how a specific technology worked or the latest computer language. He wanted a big-ass salon where geeks and philanthropists, entrepreneurs and artists, social media experts and musicians could create the tools and systems that solve our problems and fuel our dreams in the future. And where they could meet and build meaningful relationships, a community. Like TED, only less expensive, so the technorati who have yet to be discovered could afford to attend.
“That was one of the original weaknesses of the event,” he recalled. “People would say ‘What are you?’” And his response was “We’re a little bit of everything.”
But, as the event outgrew first the Convention Center then other venues, it became tougher to sustain that vision. More and more campuses were added to accommodate the crowds and people tended to hunker down in one spot with their tribes: tech people with tech people, non-profits with non-profits and so forth. That put the kibosh on the cross pollination and forging of relationships across industries. Also as the attendance grew, the number of panels swelled and some people complained the quality dropped…a lot. At the same time, various interest groups started imposing their own agendas on the event. Investors sought the next Facebook, startups hoped to get discovered, companies hoped to launch the next Twitter.

SXSW Interactive Opening Party 2012 — Credit: JoJo Marion, courtesy of SXSW

And then there were the parties.
Some veterans of the event complain that it has gotten too big, that the panels suck, that it costs too much or that it should cost more to restrict the size. They complain it’s more of a networking event than a learning experience, that all the good stuff happens in the side events where you don’t need a badge to get in, that the side events are a parasite on the main event and—a common refrain in Austin —that it’s not as good as it used to be.

Victim of Its Own Success
Forrest is familiar with all the criticism and issues surrounding the event. He has watched the number of panels swell and wants to bring the number down for 2013 with the emphasis on quality, not quantity. A few years ago, he introduced the Panel Picker model in which people can propose sessions and SXSW participants vote on which ones they would like to attend. The problem is, many people canvass their friends to vote for them, making the Panel Picker process more a popularity contest than a pitch for interesting ideas. But he’d also like to get to the place where the conference organizers can work with panelists beforehand to ensure a top notch presentation.
“One event I would compare this to is TED. The bottom line for the two events is very similar: They draw people who are very smart, very creative and interested in different ideas. Ours tends to be very open source and particularly with the Panel Picker model, once you’ve been accepted to speak much of the onus falls on the person who has proposed the panel in the first place. What TED does really well is to curate a lot of their content and really work with their speakers…each one gets 40 hours of training. We don’t have that kind of bandwidth. So some presentations are really, really great and some that seem like they’ll be great don’t put the time in beforehand.”

2012 SXSWi Featured Speakers Al Gore & Sean Parker — Credit: Heather Kennedy, courtesy of SXSW

In 2012, he said, SXSW had more than 1,000 events including the panels and meetups. He’d like to reduce that to 550 panels and about 300 meetups and mentor sessions for 2013 to make handholding easier.
But another reason people might find panels disappointing, Forrest said, is that they only go to presentations within their own campuses and disciplines. Instead of being exposed to new ideas from all different disciplines, they’re only learning what the brightest minds in their own arenas have to say—insights they probably already knew about.
Forrest tries to get people to mix it up a little panel-wise. “I tend to encourage people to go to sessions they don’t know anything about,” Forrest says. “If you’re a social media expert, go to the panels on transforming the health industry, or sessions on government and technology, something slightly out of your wheel house. “
Susan Davenport, Senior Vice President of Global Technology Strategies for the Chamber of Commerce pointed out that, among people making SXSW Interactive a priority event are thought leaders, investors and companies doing new releases (hoping to be the next Twitter or Foursquare) as well as federal officials and health care executives. Their interests are multi-dimensional and often cross from one sector to another.
“The lines are blurring,” she said. “For example people are studying technologies to move healthcare forward, how will sensor technology impact life sciences? It’s where biology meets technology. Then there’s clean tech and gaming and various pieces of that find their way into many different sectors.”
But, Forrest points out, human nature is such that people tend to respond to such a giant event by sticking with their friends and their industry. If all your friends are checking into one event on Foursquare, that may be where you head, instead of to another event where you might meet new people in an unfamiliar industry. Individuals have to make a decision to step out of their comfort zones to get the most from the event.
“I think (Forrest) is doing really a great job of managing SXSW, but in a way, it’s a victim of its own success” said Josh Baer, founder of the Capital Factory. “You have to do things to break it up and make it manageable but you do lose the cross pollination….
Things in life are either getting bigger or they’re getting smaller; getting better or getting worse. What you can’t do is keep everything exactly the same. Then it would stagnate and that wouldn’t be good either.”
Still, Forrest hopes to keep on top of the growth and make the event more navigable. With so many people and sessions, he said, it can be difficult to find the people you want to meet and make a meaningful one-on-one connection.
“Whether that person becomes a friend or you end up making business with them or they’re just someone you can call up and they’ll tell you the best restaurant to go to …those one-on-one relationships are one of the most important things to come out of SXSW. A lot of people come to the event and say, ‘Hey, I met this person and they were directly responsible for me getting this new job or they inspired me or changed my viewpoint on this issue….

Startup Village
Another aspect of human nature that Forrest and his team of 20 must contend with is our attraction to things that glitter. He does a poor job of masking his frustration with the fact that startups threaten to swallow the event.

SXSW Interactive Awards 2012 Breakout Digital Trend Winner Ben Silberman of Pinterest — Credit: Michael Cummings, courtesy SXSW

“Startups are a big driver in the U.S. and international economies at this point,” Forrest says. “There’s an energy, a vibrancy, a robustness around startups. Our addition of startup stuff was one of the big drivers of our continued growth…. But what is to some degree concerning is that startups are so sexy and intoxicating I worry they will overshadow other things we do.”
Last year’s introduction of Start-Up Village, on the fourth floor of the Hyatt Hotel was enormously successful. So successful, Baer points out, that if it hadn’t been at SXSW, it would have been its own huge event. And that’s what Forrest worries about. “What happens if the startup economy completely craters? I’m not saying that will happen but we don’t want to put all our eggs in one basket. We want many different things going on.”

Managing Crazy Growth
On the other hand, one of the many different things that go on include extra-SXSW events that piggyback off the success of the conference. One of the hot political issues of SXSW is dealing with the parties and meetings staged around the event that don’t require badges. Forrest said he would prefer to pull all of those into the main event. But they are a natural byproduct of an event as large as SXSW. And however many are pulled in, more are likely to spring up.
“One of our biggest challenges is to create a structure that continues to foster the kind of growth we want to see as we move forward,” Forrest said.
“Just by seeing the kinds of ideas in the Panel Picker serves as barometers where the industry is,” he said. “The biggest single category is entrepreneurialism and business. There’s so much interest excitement, momentum in the startup space and that’s good. By comparison, one thing we added this year to the Panel Picker was science and space exploration. … A lot of the entries in that category are very, very exciting. There’s lots of stuff about space exploration, big data, mobile, gamefication….”
Some people have argued that, with the conference’s success, they have the clout to invite CEOs from huge tech companies to speak. But that defeats an idea that Forrest loves that—as one attendee commented—SXSW is where he goes to see what will be big two years from now. It’s the birthplace of new ideas, not the celebration of institutions.
While he is passionate about that idea, he has also struggled to learn to delegate to his growing team, Forrest said.
“I don’t want to just be representative of the tech companies. I want to create an ideal world within SXSW where you don’t have to necessarily agree with everyone. The more different ideas you can bring into the event the stronger it becomes. We have to talk all these things out. ‘Hey, here’s the Blank Blank who wants to talk this year. ‘We have to decide, would that push us too much in one direction?”
“We’re not the stars of the show,” he said, referring to himself and his staff. “The stars of the show are the creative people who come to Austin in March and the creativity of the community that makes the event what it is. The organizers try to pull the pieces together. In some places we’ve done a great job and in other cases we didn’t make the right moves.”
On the other hand, the team has created a huge success, for an English major with a computer.
“I always had this idea that I would never do any job for more than four years,” he said. “I thought it was important to move on and test myself. Having done this approximately 20 years, some days I think I would like to challenge myself in other ways; go back to writing more. I do think that when I do step down, hopefully it will survive and thrive and prosper. It’s the community that pushes this thing. There are so many people in the community who care so passionately about this event.”

Editor’s note: WeAreAustinTech.com recently featured an interview with Hugh Forrest in its weekly series of video releases on Austin-area technology visionaries. With their permission, I’ve posted the video below.

SecureNet Expands in Austin and Plans to Hire 200

SecureNet Payment Systems has opened a new technology and innovation center in Austin and plans to hire 200 new employees in the next year.
The company also plans to open a client operations center in Silicon Valley later this year.
SecureNet reports that it has more than 14,000 merchants and $12 billion in annual processing volume.
“Austin and Silicon Valley are a perfect fit for SecureNet’s future as they are home to top technology talent, are both renowned entrepreneurial centers situated near some existing clients as well as prospects; and move us closer toward being a dominant player in the payment technology market,” Brent Warrington, CEO of SecureNet said in a statement.
SecureNet recently raised $18 million with Sterling Partners leading the investment.

Yodle Expands in Austin and Plans to Hire Hundreds

The online marketing and advertising firm, Yodle, announced Monday that it The Internet marketing and advertising firm, Yodle, announced Monday that it has moved into a new 100,000 square foot office in Austin and plans to hire nearly 400 more employees.
The company moved into a building at 12234B North Interstate 35 and plans to almost double its current workforce of 350 employees to 750 employees over the next five years.
“Yodle’s expansion adds to the growing list of innovative technology companies that have chosen to make a significant investment in Austin,” Austin Mayor Lee Leffingwell said in a statement.
Yodle acquired ProfitFuel, a search engine optimization firm, in Austin in May of 2011. The company, with offices in New York, Boston, Charlotte, and Scottsdale, has since doubled the number of employees at its Austin office. The company plans to add new jobs in sales and client services as well as tech, human resources and marketing operations.
“Yodle’s operations in Austin have already grown significantly over the last year,” Yodle CEO Court Cunningham said in a statement. “We’ve chosen to accelerate our expansion in Austin because of the deep talent pool, innovative culture, and ideal economic environment that the city offers. Making this investment in Austin will further enable Yodle to put itself at the forefront of the fast growing and sizeable local online marketing space.”
Yodle handles online advertising and marketing for more than 30,000 small businesses nationwide.

Rackspace, Cirrus Logic and SolarWinds Make Fortune’s Fastest Growing List

CNNMoney, a service of CNN, Fortune and Money, reports that Rackspace Hosting ranks at number No. 67 on Fortune’s list of the country’s fastest growing companies.
Rackspace had three-year revenue growth of 25 percent and profit growth of 45 percent, according to Fortune. Rackspace reported revenue of $1 billion in 2011 and profits of $86 million.
Overall, 11 Texas companies made the list. Rackspace was the only one from San Antonio.
Cirrus Logic in Austin ranked second on the list. SolarWinds ranked 76 and Rush Enterprises in New Braunfels ranked 95.
Graham Weston, chairman of Rackspace Hosting, gives a brief overview of the company in this ad for Cadillac Spirit of Innovation. Nick Longo, director of Geekdom, a collaborative coworking space downtown, is shooting an ad for the Cadillac innovation campaign next week.

General Motors to Hire 500 for Austin Innovation Center

Car giant General Motors announced today plans to hire 500 people for a new Information Technology Innovation Center in Austin.
The Detroit auto maker is looking for software developers, project managers, database experts, business analyts and other IT workers to staff its new center.
The center is “intended to drive breakthrough ideas into GM vehicles and business processes globally.”
“We want IT to keep up with the imagination of our GM business partners, and to do that, we plan to rebalance the employment model over the next three years so that the majority of our IT work is done by GM employees focused on extending new capabilities that further enable our business,” GM Chief Information Officer Randy Mott said in a news release.
General Motors chose Austin because the city “already has people with the skills GM is seeking – 46,000, according to the May 2011 Bureau of Labor Statistics Occupational Employment Report.”

Lean Startup Machine in Austin Educates Entrepreneurs

Jonathan Van, a student at UT Austin, co-founder of UT Entrepreneurship Week, is currently coordinating the Austin Lean Startup Machine.
The event takes place Sept. 21-23rd.

Jonathan Van, one of the organizers of Lean Startup Machine in Austin

But tonight Van is hosting a Lean Startup Machine Pre-Show featuring Travis McCutcheon of Leap for Mankind. He will be teaching a Lean Startup 101 class at Capital Factory.
The event is free and they’ll have pizza and beer, but you have to RSVP on Eventbrite. Van also answered some questions about Lean Startup Machine.

Q. What is Lean Startup Machine?

A. “Lean Startup” is a term coined by Eric Ries while an advisor to the venture capital firm Kleiner Perkins. It’s based on the new management processes he employed while he worked as chief technology officer at IMVU, one of Silicon Valley’s most successful startups.
Lean Startup Machine is a workshop and educational series. Our focus is on teaching founders a process through case studies and hands-on mentoring. Three days is an extremely short amount of time to reliably validate a new product or service concept, yet it’s enough time to get a significant amount done. While Lean Startup Machine and Startup Weekend share the same spirit of experiential learning over a few days, the two events have a different purpose. Some view Lean Startup Machine as the logical pre-cursor to Startup Weekend

Q. Who is putting it on?

A. We are graciously being hosted by HubAustin as it’s last hurrah event before it has to close its doors. Van, UT student and co-founder of UT Entrepreneurship Week, and Brent Weber of Red Spark Labs have partnered to coordinate round 2 of Lean Startup Machine in Austin.

Q. When does it take place and where?

A. It starts at Friday night at 6 pm on September 21 and runs through 6pm Sunday night September 23. It’s 54 hours of the most grueling, but useful learning experience of your life.

Q. How do people sign up and how much does it cost?

A. People can sign up at leanatx.eventbrite.com – It is not cheap, but we’ve had attendees say they got their $299 worth by the end of Friday evening. Included with your ticket is access to 20 of Austin’s best mentors, learning how to properly execute lean startup methods, and over $500 in products.
General Admission in most cities is $299. We offer significant discounts for students and early-bird ticket purchasers. Lean Startup Machine is more expensive than most startup events because it is more expensive to produce and is limited to a smaller audience

Q. How many people participate?

A. Most workshops have a cap of 50 participants to make sure we foster an intimate learning environment. We fly in our expert facilitators and also invest in product and curriculum development, which is noticeable after attending multiple workshops.

Q. What kind of results does Lean Startup Machine produce?

A. There is no hacking or coding during Lean Startup Machine. The winner of Lean Startup Machine is judged solely on the amount of validation achieved through applying the Lean Startup process. However, we’ve had teams craft a working product and many of the winning teams have already sold their minimum viable product to customers as a validation for the value they’ve created over the weekend. More recently, Lean Startup Machine alumni team, Branch has just raised capital from the founders of Twitter to scale their product.

Q. How often do you host Lean Startup Machine?

A. This is only our second time hosting Lean Startup Machine in Austin. At the moment our next one may be in January. In New York, where Lean Startup Machine was founded, a workshop is hosted every two months! I hope there’s enough traction in Austin to garner those sort of results!

Q. Why is Austin a hotbed for technology startups?

A. Keep Austin Weird. The openness to innovation and improvement is what makes Austin a hotbed for technology startups; not to mention the access to such a vibrant community, a top 30 university, and cheap living costs. It’s just a great place to be. The Austin startup community has been on a linear growth path and is just about to hit its stride to exponential growth as the “entrepreneurial density” as Brad Feld would put it, is growing.

Q. What are some of your favorite startup resources in Austin?

A. Well this is biased, but clearly Lean Startup Machine Workshops, but aside from that I know Tech Ranch has been running multiple programs out of their space.
Additionally, Joshua Baer’s Capital Factory has become the shining light to many scaling tech entrepreneurs.
If you’re working on a hardware, IP-driven startup, then the Austin Technology Incubator is the place for you. With a proven track record, they know how to help build companies that are venture capital worthy.
The Lean Startup Circle Meetup in Austin is one of the BIGGEST meetup groups in Austin. It’s a collection of 1200 people who are hungry to execute Lean Startup principles or already do.

Q. What else do we need to know about Lean Startup Machine that we
haven’t asked you about?

A. We have Dr. Bob Metcalfe, the founder of Ethernet and 3Com keynoting Friday night.
Additionally, we have a record 20 mentors for the weekend. That’s almost a mentor per team!
The stage is set for an amazing weekend! We don’t want any austinpreneur to miss out on this one of a kind event that will pay them back their ticket price in dividends as they navigate their way to success!

Tableau Software Opens Austin Office Plans to Hire 150

Tableau Software of Seattle has opened an Austin office and is hosting an open house on Thursday, Sept. 13.
The company, which creates business intelligence software, is hiring developers, sales and operations employees for its professional services practice based in Austin. It expects to hire more than 150 employees locally.
“Austin’s geography, talented workforce and reputation as a business and technology center make it an ideal location for our continued expansion,” Brett Thompson, Vice President of Human Resources at Tableau Software, said in a news release. “We are seeking candidates who share our passion to help people see and understand data.”
Founded in 2003 at Stanford, Tableau has seen double digit sales growth and plans to hire 300 new employees this year.
In addition to Austin and its Seattle headquarters, Tableau also has offices in Kirkland, WA and Menlo Park, Calif. It has international offices in London and Singapore.
Tableau’s temporary office in Austin is located at the Arboretum Great Hills Center at 9600 Great Hills Trail.
The Tableau Austin open house will take place at Maria Maria, 415 Colorado Street in Austin. Doors open at 5:00 p.m. and a presentation by Tableau CEO and co-founder, Christian Chabot, will take place at 6:00 p.m. Attendees are asked to register to attend. Tableau has also provided list of jobs available.

Macheen Lands $10 Million in Financing

Macheen Inc.. a provider of cloud-based services and broadband connectivity, has closed on $10 million in funding.
The Austin-based company reports its existing investors including GemVentures, North Bridge Venture Capital and DFJ Mercury participated in the latest funding round.
“Also among Macheen’s investment group are prominent angels and industry figures Tom Meredith, Mike Maples Sr. and Yechiam Yemini,” the company disclosed in a news release.
In addition,Philippe Vallé with GemVentures will join the company’s board.
Macheen, founded in 2010, provides broadband connectivity to mobile device makers like Lenovo and its Thinkpad laptops. The company provides the Internet connectivity ready as a service which ships with the device. So when the customer gets the mobile device they have immediate access to the Internet.

Noesis Energy Gets $8 million

Noesis Energy Wednesday unveiled a free website for companies to control energy costs in their buildings using big data services and analytics.
Noesis’ site, which underwent a five month beta test, already has more than 4,400 buildings being managed.
The Austin-based company also announced that it closed on a $8 million funding round led by Black Coral Capital and also an investment from Austin Ventures.
“There is no shortage of data in the energy industry. What is lacking are the practical insights required to make both big and small energy decisions so organizations can start realizing the tremendous amount of pent up savings,” Rob Day, partner with Black Coral Capital, said in a statement. “We believe this is why Noesis Energy has seen such impressive growth with energy managers and consultants during their beta period. This has shown us just how much these experts have been looking for a solution like this.”

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