Startup Showcase Exposes CEOs

A seasonal technology showcase for Web-based startups -- TechCrunch 50 -- rolled into San Francisco this week, highlighting both the problems and opportunities for CEOs of new companies.

Now in its third year, the show has become a blessing and a curse for those seeking fame and fortune in the investment community. Fifty new companies polish up their elevator pitches and PowerPoint presentations to impress the audience as well as a panel of judges ranging from investment gurus like Vossi Vardi, Ron Conway, and George Zachary, to luminaries like Digg's Kevin Rose, Google (Nasdaq: GOOG) VP Marissa Mayer, and super-entrepreneur Marc Andreessen.

Presenters have six minutes to state their case; then, they sit in the hotseat to answer questions. Some perform swimmingly. Others, shall we say, have a long way to go.

Take for example the presentation done Monday by iMo, a software company whose product turns an iPhone or iPod Touch into a PC gaming controller.

The setup looked great. Thumping music surrounded the audience, who watched while an iMo employee suited up in a Nascar outfit prepared to show his skills in a driving video game. Problem was, the wireless connection wasn't working, and the demonstrator was left trying to scramble to get the product to work.

One CEO, Paul Bohan of online entertainment firm ToonsTunes, also put himself on the line when he sang his presentation. The judges liked the product, but I found myself grimacing at his karaoke-style of singing.

Embarrassing, to be sure, but not as shocking as being told by the judges that your product is not ready for prime time. That's what happened to Clasemovil (online education software), SealTale (brand icon generator), and even Penn and Teller's iPhone app (Web-based entertainment).

The Demo Pit was another pain point for some technology and Web-based startups. Executives at BeFunky, Faroo, SpySee, Yap, and Shindonni were working overtime trying to hold the attention of attendees.

But not every CEO was sweating bullets. Jill Gilbert, a CEO who just launched a Web-based service and resource site for Baby Boomers called The Daily Wrinkle, was mobbed by investors and would-be partners.

"We have been busy all day," Gilbert told me. "Mostly because people here know that their parents are getting older and they have lots of questions about how to take care of them."

Likewise, Kal Takru, who heads up iTwin, which makes a USB networking device, got a vote of confidence from the judges and a meeting with representatives from Best Buy. Look for it on the store shelves in 2010, I'm told.

For many startups, this won't be the last time for the dog-and-pony show. Many firms will need to try again and again to attract venture capital funding and raise public interest.

There's also a question about the kind of CEO who's most likely to dominate the startup world. Despite some bias to the contrary, TechCrunch guest blogger Vivek Wadhwa believes that most tech startup funding these days comes to more experienced and networked CEOs than it would to younger entrepreneurs.

Internet-based startups will also be on the hotseat during the DEMO show at the Sheraton San Diego Hotel and Marina next week.

Stay tuned for the next round of "So you want to be a tech startup success."

— Michael Singer, Senior Editor, Internet Evolution. His focus includes executive issues... What's top of mind for CEOs, CIOs, and CTOs?