[Special Feature] The Winds of Change at SXSW (South by Southwest)

Hello. I'm Aoki from Dentsu Inc. Smart Plaza.
This time, we're stepping outside Japan to report on SXSW, the world's largest trade show held this March in Austin, Texas. During the event, we grabbed lunch with Masaaki Sugimoto, CEO of AgIC (a startup originating from the University of Tokyo that develops "electronic circuits you can write with a pen") and an expert on SXSW, to hear his insights. We present this in a dialogue format.

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The potential and thoughts hidden within SXSW

 

Aoki: Hello. Mr. Sugimoto, this is your third time participating in SXSW, correct? Could you tell us how you've been involved?

Sugimoto: I've always been focused on building communities. Even as an undergraduate at Tokyo University, I felt Japanese technology was underappreciated globally. So, near the university, I created a membership-based cafe called "Lab+Cafe " aimed at fostering creative communities among students. Hearing about this incredible event called SXSW from other students who frequented the cafe, I thought it sounded fascinating and started considering how we could exhibit there.
Back then, I had this secret dream of opening a pool hall. So I decided to bring a product I created called OpenPool to the US. It combined the then-buzzword 3D mapping with open-source technology. I figured with all these elements, it would probably catch on in the US.

Aoki: I see. So you started it with a pretty casual mindset.

Sugimoto: And it totally hit the mark! It was a huge hit at the exhibition, and we even got selected as one of the Coolest 5 of SXSW. But two challenges became clear then. One was that it wasn't enough just to get attention; we had to design the strategy for what came next. Things like crowdfunding on Kickstarter, business expansion through mentors, and being conscious of the next move. The other was this: if OpenPool resonated so strongly, perhaps there were more raw technological gems around Lab+Cafe waiting to be discovered. That's why we launched Todai to Texas, a competition for startups originating from the University of Tokyo aiming to exhibit at SXSW.

SXSW is indie culture. That's precisely why it offers flat, equal opportunities.

 

Aoki: One question—why SXSW specifically? There are plenty of other exhibitions out there.

Sugimoto: That might relate to SXSW's origins. SXSW started as an event gathering indie music, discovering new talent—more like a treasure hunt. Emerging artists aimed to stand out here and break into the mainstream, while music industry professionals discovered new talent and nurtured them through investment. It was that kind of place. Now it's divided into Music, Film, and Interactive sections, but that indie culture remains throughout all sections.

Aoki: The concept of indie tech is fascinating.

Sugimoto: Exactly. Startups are actually like bands. The CEO, CFO, and CTO form a band and play together. Investors find them and groove with them. Because SXSW has this deeply rooted indie culture, it's incredibly flat.
It's not about how famous you are or how much you've sold. It's about how well you can express that great music, video, or technology right there in the moment, and enjoying it like a treasure hunt. I think that spirit is what keeps SXSW flat. While other global exhibition events focus on big corporations' moves, it's only natural that startups get the spotlight at SXSW.

Aoki: Until now, when people talked about music, film, and interactive, I always wondered, "Why is interactive even here?" It never quite clicked. But hearing it described as a flat-eyed treasure hunt for indie gems makes perfect sense.

Sugimoto: The root of SXSW isn't the annual "event" itself. I think it's that indie band spirit, the culture itself.

IT transcends devices.
And computers become unconsciously embedded in everything.

 

Aoki: Precisely because SXSW embodies that free venture spirit, it can showcase cutting-edge trends. Having attended for the third time, Sugimoto, what trends do you see emerging from this year's SXSW?

Then, a new division emerged this year: the Health and MedTech Expo. That is, medical, biotech, and healthcare. At this SXSW, I sensed the walls between these specialized fields are starting to crumble. I believe IT and these specialized domains are beginning to merge. In other words, we confirmed that information technology is advancing into these specializations, essentially as an application. I think we're starting to see concrete solutions for how IoT (Internet of Things) and big data will be used when they enter the medical field.

Aoki: That's certainly true. I felt that interactive IT technology has finally penetrated beyond PCs and mobile devices into every industry. While I was particularly focused on the automotive sector this time, I strongly sensed that discussions about Connected Vehicles and Automated Vehicles were highly concrete and realistic. They covered how to practically apply information technology, along with the associated challenges, solutions, and regulatory frameworks.

Sugimoto: In other words, it's become clear that the realm of information is expanding explosively. The ultimate destination is the Internet of Everything. I believe that when computers are ultimately embedded in all things (like chairs or cups), we won't even consciously think of them as computers anymore.

Not just "easy to use," but "pleasant to use."
That is the "feel of technology" we should aim for.

 

Aoki: I also felt the importance of design has grown tremendously.
Actually, I've been following the keyword "wearable," but it's no longer trending as a buzzword. Wearing technology is already commonplace. As you mentioned earlier, when technology is embedded in everything and surrounds us, what becomes crucial is designing interfaces that feel "pleasant" – what kind of UI/UX we create.

Sugimoto: That's right. What stands out in the current startup scene on the West Coast is designers becoming executives.

Sugimoto: Yes, I agree. However, a common misunderstanding here is interpreting it as "meaning the interface should be easy for anyone to use." I believe "easy to use" and "pleasant to use" are actually similar yet distinct concepts.

Aoki: SIX's " Lyrics Speaker," which automatically displays lyrics on a speaker-integrated display, won an award in this competition. That work also embodied an interface that felt "pleasant" to use.

Sugimoto: The live stream of Perfume's performance during the event also showcased technology with a great "feel." Typically, the live experience is considered the best, with the video version coming second. But with Perfume this time, some even said "the video was more impressive." I was actually at the venue myself and also watched the stream, and I felt I experienced two distinct kinds of excitement. That's what's amazing – the technology experience surpassing the real thing.

What will be commonplace in the world ten years from now is right here in Austin for these ten days.

 

Aoki: Now, changing the subject a bit, I was amazed at how SXSW engulfed the entire city of Austin. And I was deeply impressed by how the whole city embraces cutting-edge technology and services.

Sugimoto: Austin is one of the fastest-growing cities in the U.S. Its young, liberal population keeps embracing new things, driving its growth.

Aoki: Actually, this time I booked a place through Airbnb, which connects individuals renting out rooms, and tried UberPool for ridesharing. Everyone here uses these services as a matter of course, right?

Sugimoto: That's right. I think the sharing culture is deeply ingrained here. Especially during SXSW, new technologies are introduced as pilot projects. Maybe the everyday future of the world ten years from now is already here in this city during the ten days SXSW takes place.

What should we do for next year?

 

Aoki: But coming to SXSW this time was truly worthwhile. I got a huge boost of inspiration. I definitely want to come back next year.

Sugimoto: No, no, just coming to see isn't enough. You absolutely have to bring something with you. Whether it's exhibiting or hosting a seminar, taking the initiative yourself is definitely more fun. And I think it's crucial to have a solid plan for what comes next. It's okay to fail. The real failure is being paralyzed by fear of failure and not taking action.

Aoki: Ah, that's exactly what Astro Teller from Google X said in his keynote speech. Thank you so much for today.

Sugimoto: Yes, please come visit Lab+Cafe again sometime.