TechCrunch v DEMO Smackdown! Calacanis Blasts IDG, Offers Shipley a Job

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smackdown.jpgNow that TechCrunch and Jason Calacanis have scheduled their TechCrunch50 start-up celebration conference at the same time as IDG's DEMO start-up celebration conference, the allegations are flying:

  • Who moved whose conference to kill who.
  • Who ripped off who.
  • Who's screwing who.
  • Who's greedy, mercenary, abusive...
  • Etc.

For the past 24-hours, as the scandal has raged, the normally loquacious Mahalo CEO Jason Calacanis has kept abnormally silent. Until now.

In an exclusive statement to Silicon Alley Insider (below), Jason reveals his respect for Chris Shipley-the-person (Chris is the IDG conference organizer who has been blasting TechCrunch and Jason for "TechCrunch's decision to put its event literally on top of DEMOfall 08").

Jason blasts Chris and IDG for abusing start-ups. Jason argues that DEMO is the one that switched its dates--in order to compete with TechCrunch40 (last year's version of the conference). Jason decries "pay to speak" conferences like DEMO as nothing more than payola for conference promoters. Jason ends by offering Chris Shipley a job.

chrisshipley.jpgWe'll begin our smackdown with DEMO's Chris Shipley:

I’m baffled by TechCrunch’s decision to put its event literally on top of DEMOfall 08. DEMOfall is Sept 7 - 9, TC50 (the number has grown from the original TC20 concept) is Sept 8 - 10.

I’m not naive. I’m not at all surprised by the competition. A year or so ago, TechCrunch set its sites on DEMO and has been lobbing missiles our way ever since. Why? Honestly, I don’t know. This is a great big market and there is ample opportunity to support the startups in it. I also understand that it’s much easier to imitate a successful venture than to create a new value proposition. And if imitation is the sincerest form of flattery, then consider me well flattered today.

What baffles me, though, is why an organization that purports to encourage startups would create an environment that effectively asks them to scream in a hurricane.

The companies who accept our invitation to participate at DEMO receive a ton of media coverage. DEMO 08 did well over 200 million media impressions . . . and that’s without counting the audience who read about DEMO companies in blogs and other online media and those who continue to flock to DEMO.com to view the videos of their presentations.

The companies that participated at TC40 got lots of attention, too, and certainly I’ll not take anything away from the audience reach of TechCrunch. By putting TC50 up against DEMO, TechCrunch has created a challenging dilemma for the best startups.

Sure, they’ll have to choose which venue will more appropriately serve their needs — and the should. Here, DEMO stands on its 18-year record. The entire DEMO organization, from me and Carla who screen companies to Jackie DiPerna who helps them prepare for their DEMO experience, to our A/V team that coaches and supports their on-stage demo, to Becky Sniffen and Erica Lee who provide media support, to the DEMO.com crew who continues to cover DEMO alumni companies for years after they’ve presented at DEMO. . . DEMO is all about putting entrepreneurs first to accelerate their go-to-market efforts.

Yes, demonstrators pay a fee, an $18,500 fee, once they have been accepted and invited to present at the conference. And that’s no small hurdle for the very smallest of startups. Consistently, we’ve been told by demonstrating companies that it’s the best marketing money they’ve ever spent, with value far surpassing the dollars paid. But that fee is also a signal to the investors and business development executives and customers who come to DEMO. It says, in effect, these companies are ready to be taken seriously. They understand the value of a market presence and they’ll spend — wisely — to support their product launch and reach their potential customers, the vast majority of whom live no where near Silicon Valley and San Francisco.

jasoncalacanis.jpgAnd, now, Jason Calacanis:

1. Chris may be crying that we are taking her dates but that is false: DEMO moved up their dates this year by three weeks to come after TechCrunch40. They we're on 9/24 last year and we were the week before them. DEMO decided to move their conference up to try and unseat us.

2. Chris and DEMO are abusing startup companies. The DEMO conference has been unchallenged for years and they have spread a horrible virus in the industry: conference payola. Their $18,500 fee for a six minute is so abusive it's criminal. Startups had no choice in the market until last year, and DEMO's horrible treatment of entrepreneurs lead "pay for your speaking gig" virus to spread to other conferences like Web 2.0. John Battelle himself hated doing the pay for play thing and he STOPPED DOING IT last year thanks to TechCrunch40 coming into the market. We are killing the payola market for fellow entrepreneurs.

3. The marketplace is going to decide which conference model is better: pay for play or merit based with a $50,000 grand prize. We like our chances.

4. Chris kicked out a number of companies who presented at TechCrunch40 last year. Those companies GAVE UP their $18,500 fee at DEMO in favor of presenting at TechCrunch40
--that says it all. If she's so pro-company why is she kicking them out?

5. Smart entrepreneurs should go where the best big companies, best VCs, best press, and best, and most competitive companies are and that's TechCrunch50
.

6. No one should shed a tear if DEMO shuts down after this year.
It's a abusive conference run by the multi-billion dollar IDG that plays off the entrepreneurial spirit of startups. The best entrepreneurs are not going to pay for play.

7. Deep in my heart I know Chris Shipley is a good person in a bad situation. She works for IDG which sees startup companies as dollar signs. I respect her intellect and passion. If she wants to do the right thing she should resign from IDG/DEMO after this year and join the TechCrunch50 event. We would love to have on our team--that's a serious offer. She should be working with Mike and I and help us bring TechCrunch50 to Europe, India, and Asia.

So, folks, which conference are YOU going to attend?



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30 Comments

RayC (URL) said:
Hear hear, Jason!

As a DEMO victim a decade ago, I felt totally played -- 'You didn't win the top prize, but your consolation: pay us!' (Probably where the Nigerians got the idea.) It's in the same category as those 'News Producers' who contact you about doing a video clip on your start-up (that you pay $20k for).

If challenj.com isn't good enough to make it to TechCrunch50, I'll just keep at it (and save my money). The idea of these conferences should be to separate the wheat from the chaff.

(Full disclosure: Maybe I'm sympathetic to JC because we got funding from a VC we met at Silicon Alley in the first golden days.)

All this notwithstanding, Chris Shipley is a class act.

Pete Paz (URL) said:
...and here' some more from Jason (http://thebloggingtimes.com/the-jason-nation-on-techcrunch50-vs-democom/).

Matt said:
Attend? Neither... can't afford it. But which one makes me feel warm and fuzzy inside? TC50, of course. There is no doubt that Mike and Jason truly LOVE startups and entrepreneurs. Yes they both like money and like to be the best at whatever they do, and that's great for business and competition... but these are two guys who, it's really no secret at all, have a very real passion fueling their desire to help young companies realize their success.

Strip away all the layers of affluence and ego (in a good way) from these two guys and you are left with two human beings who share a mutual love of the start-up culture in the emerging web. Their conference is a real beacon of change... I think what they are doing is fantastic and they should be congratulated and thanked. They could easily charge a fee for the amount of coverage and direct access to VC that the conference provides it's attendees but they dont... it's 100% merit based. It's almost idealistic in it's humbleness.

Mike, Jason... awesome gig.... awesome philosophies... both of you keep up the awesomeness!!!! :-D

I won't speak for Demo... if people want to go that route.. so be it... choices... commerce... free market... so be it. I wish all the companies that present the best of luck, that's for certain.

*p.s. someone called in an old favor... Jcal holding out on his statement.. giving Henry the exclusive... hehehe. (I bet you agreed to put a Brooklyn kid through private school to get this exclusive.)

Fred Grott (URL) said:
Here is who is I trust:

MA(TechCrunch)
Jason Calacanis
Paul Graham

they love us and are one of us..IDG take your blackmail shit and go the f' home..

Alexander Muse (URL) said:
I think round one certainly goes to Mike and Jason. IDG is certainly no friend to startups. We got 'invited' to present at DEMO and I was literally shocked when we were sent an invoice. Someone mentioned it before, but it was just like those hucksters that try to sell you a video taped interview with Pat Summerall as host.


Kim Hjortholm (URL) said:
help us bring TechCrunch50 to Europe, India, and Asia.
wildshot .... but here goes;
Why not consider Copenhagen, Denmark as a good place for TechCrunch in Europe

With the above discussion in mind, there might even be synergy by placing an European TechCrunch close to the yearly reboot-event ... http://www.reboot.dk/

would love to contribute ......

Rajiv (URL) said:
When is TC50 coming to India?

Mark said:
Mike and Jason's rant about being for startups are bull. They pulled in over 1 million each off the event from an audience who didn't value any of TC40. Exploit the startups, get the audience, and laugh on the way to the bank.

I was at TC40 and not one person in the audience said it was of value. All I can remember was no wifi and no value. Plus almost all startups thought that it was a joke being in the demo pit.

TC40 was a con job by Jason' own admission. Blue collar event with an audience that was exploited.

Prediction is that this year TC50 will flop.

Demo will win. TC40 is a one hit wonder

Rupert Murdoch said:
"Matt" is Jason Calcanis.

Jeremy Chone (URL) said:
Hum, I suspect either a late April fool joke or a "modern" PR tactic.

Matt said:
lol... no... I wish. Matt is Me.. that's my real name. I'm a nobody. But I, for one, did not use a fake name... (perhaps the blog author will back me up on that one as he can see the private email address to which this comment is attached.)

Bob Dandridge said:
calcanis is so full of shit that it's unbelievable to read the silly posts of the fanboys here. he and arrington are looking to stage a heist. hey, it's free market capitalism so let the best man (woman?) win. but to hear the blabbering of this fool - and then witness how gullible the sheep who post here are ...well, we do have george bush as prez. so maybe it's not all that shocking.

Mark Johnson (URL) said:
"She should be working with Mike and I and help us bring TechCrunch50 to Europe, India, and Asia." should replace I with the properly inflected pronoun, me.

-The Grammar Police

Ben said:
Umm....Shouldn't Jason C be running his startup?

I wish I had the "free" time to organize events like this instead of building a company that will generate a return for my investors and make the sacrifice that my employees took to work for me worth their while.

Cyndy Aleo-Carreira (URL) said:
This whole bitchmeme surprised me; after all, it wasn't even the weekend.

@Ben I wonder, too, why so many wantrepreneurs are off doing all kinds of things that have nothing to do with building their "killer" apps. This sector is getting far too inbred, and needs some fresh blood to come in and point out that all this infighting means nothing is getting done.

@Fred I seriously didn't think it was you there since everything was spelled correctly. Long time no see. You've been around this industry long enough that you should realize you can't trust anyone as far as you can throw a bathtub, but that list would make an ideal Trimverate of Evil. Toss a Fleury or four in there already.

Jack Peterson said:
I agree that Jason and the other arrogant TC50 conference arrangers and simply in it for the money. They say that they are all about free for the start-up and that may be true. However, they use that free card or free vail as a way to attract hundreds of paying attendees. Then, Jason and his crew of obnoxious egotistical grammarless people laugh all the way to the bank as they count the money they made from the attendees. Sure the people who demo don't pay, but the audience does. In effect, the people who demo pay dearly by being lumped in with one person bands of companies that have no clue how to demo to their audience in the first place. The value of TC50 will take years to acquire. I was at TC last year and every person I spoke to in the halls were saying they wished that someone would demo a product that was worth something more than one penny. Even when you view those stupid 1 minute videos of people trying to raise money, you can see the EXACT quality of demo that you will see on stage at TC50. Don't bother going unless you get a scholarship as an attendee. You will kick yourself everyday for wasting your money.

Fred Jackson said:
The TC50 is just another example of people exploiting attendees so they can make big money. Don't go unless you want to throw your money in the toilet. It's a waste of time and money.

Bob Johnson said:
Deciding between the two conferences has been very difficult for our company. Our PR firm recommended one particuler conference, which helped us make our decision, although we applied for both incase we didn't get into one.

Both conferences make a ton of money for the people involved in coordinating the events, but the cost is nominal to the entrepreneurs when you weigh the potential benefits. If you have a great product I can't think of a better way to kick start the growth than launching at either of these conferences.

As far as paying to play goes, both conferences cost thousands of dollars, but you can't just pay and get into either of the conferences. Less than 5% of the companies that apply to either conference get accepted (techcrunch40 700 apps./40 invites,DEMO06 1500 apps./68 invites), so the idea that you can pay your way in to either is not valid.

wangjel (URL) said:
bad tasty fight, if your in the ring can be hot but if you are outside you are funny



Andrea Tanzi (URL) said:
What about bringing TechCrunch to Latin America. It's no secret that Costa Rica for example is an outsource haven these days. And there's amazing local initiative as well without much of the backing platform that a developed country start up could have. Even in those conditions we have had global success stories like Fire.fm a winner extension for FireFox and Last.fm totally created and developed in the country. That and the biggest activity in Costa Rica which is tourism would make a TechCrunch event here (for the whole Latin area) not only productive but fun!


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