Web Summit to Launch Virtual Event Platform as Startup

Web Summit's Conference Software: Potential Spin-Off

Reports indicate that Web Summit, renowned for organizing large-scale tech conferences, particularly in Lisbon, is preparing to establish its in-house conference software as a standalone startup. While a recent statement announced the licensing of the software to the United Nations Development Programme, sources suggest a more significant development is underway.

Platform's Evolution and Funding Prospects

These sources reveal plans to spin out the platform as a separate entity and secure venture capital funding. This strategy is informed by the substantial valuations achieved by comparable virtual conference platforms. A company spokesperson, however, has refuted these claims.

Initially unveiled at Collision in June 2020, the software facilitated networking at physical events. Its functionality was swiftly adapted for online use following the global travel restrictions imposed due to the COVID-19 pandemic.

First Client and Future Plans

The United Nations Development Programme will be the inaugural client utilizing Web Summit’s software for its Istanbul Innovation Days event, scheduled for March 23-25.

Paddy Cosgrave, co-founder and CEO of Web Summit, stated their agreement to host the UNDP event on their platform, expressing enthusiasm for having them as their first customer. He emphasized the extensive development process and a deliberate approach to onboarding new clients, with plans for further partnerships in 2022. He also denied any plans to spin out the platform in a conversation with TechCrunch.

Investor Interest and Market Context

Despite the denial, sources indicate significant investor interest in the software platform. This interest is fueled by the recent valuations of companies like Zoom and Hopin, with Hopin recently reaching a valuation between $5 billion and $6 billion following a $400 million Series C funding round.

Virtual Events Landscape

This potential move by Web Summit occurs during a dynamic period for the virtual events sector.

While Hopin has experienced rapid valuation growth, Zoom’s valuation has faced scrutiny. Furthermore, the expansion of Microsoft Teams presents a potential challenge to Zoom’s market position.

Nevertheless, specialized virtual conference software continues to thrive, exemplified by the $14 million funding secured by Spatial and similar companies.