Venture Capital
No Sign of a Tech Downturn at South by Southwest Parties
In Austin, startups and other companies still spend lavishly, hoping to get noticed by the conference's influential attendees.
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Even Tumblr—which saw its faltering owner, Yahoo!, write down the social media property's value by $230 million just last month—is partying in Austin, Texas, like it's, well, 2015. Tumblr’s Saturday night soiree had all the trappings of a big South by Southwest blowout: a legendary multi-story music venue (the Mohawk), a teen-favorite headliner (Grouplove), and bearded bartenders. But one usual perk was missing: free drinks.
The cash bar felt like a good reminder that it's 2016, which for Silicon Valley has meant retrenchment, cost-cutting, falling valuations and plummeting expectations. For the most part, though, Silicon Valley didn't let the bad news dampen its bacchanalia.