Last week Sophie and I went to Paris for the Le Web event. Whereas ETRE probably has the best networking and is over-the-top elegant, and DEMO Germany is a must for anyone wanting to enter the German market, Le Web is easily the coolest tech event that I’ve ever attended (Essential Web is probably second).

By cool, I mean that it felt like I was at a cool, exclusive party — kind of like when my friends and I snuck into Puff Daddy’s VIP Party when the MTV Awards came to Barcelona. But that’s another story . . .

At ETRE, the guests are important but not really focused on being cool. It’s more like being invited to a world summit where you can actually meet and interact with world leaders. At DEMO, you have all of the German VCs available to you. At Le Web, the speakers and other guests are cool, public figures but probably not the main attraction. Some of them gave 20-minute extracts of what should really be much larger discussions. In fact, in a world where almost everyone has a blog and has posted his or her best presentations on YouTube, you usually don’t learn anything new at large conferences geared to general-interest audiences full of non-entrepreneurs. If you want to participate in longer, more substantive conversations with entire micro-communities of commentators, analysts and entrepreneurs, go read your favorite entrepreneur or VC’s blog or become one of her “friends” on Facebook or search for her presentations on YouTube. There are a lot of options that are cheaper than paying the hefty entrance fees and travel expenses to go to a conference.

But if you do go to a conference, it’s nice to feel welcomed, as if you are a VIP guest. And that’s what Le Web excels at. It’s clear that they spent lots of time designed to make the event feel special and singular — making it comfortable and elegant, as opposed to just functional and boring.

A few highlights:

• The networking lounge was full of modern art work and live artists drawing while entrepreneurs networked on comfortable couches and/or watched the main conference on large plasma TVs.
• There was the Michelin-star type lunch, with chefs preparing foie, shrimp, fondues, raclettes and other great meals, and other waiters serving wine, cocktails or whatever beverage might capture your attention.
• Each guest was introduced with electronica / house music, which certainly woke me up at 9AM in the morning
• Loïc Le Meur graciously introduced himself to each guest at the party, smiling broadly and being a good host, even when Phillipe Starck spoke about 1 hour more than his allotted time.
• Kevin Rose had a very intimate and personal conversation with a Business Week journalist, who asked him about Digg’s groupies.
• Most of the presentators cursed and spoke in a lot more “vulgar” terms. It was surprising on the one hand, but it lent to the atmosphere that the audience was being allowed to hear open and honest conversations between influential Internet opinon-makers. No bullshitting. Just the real deal with lots of cursing.
• Most of the attendees were dressed stylishly and intelligently, as if we were all part of an exclusive Rive Gauche soiree.
• And, of course, there was the fact that so many people went. Bloggers. VCs. Tech analysts. Entrepreneurs. It seems that we all go to the same conferences, but people seemed a lot happier and cheerful at this one. Various blogs had speculated that there’d be 2000 people attending (clever, aggressive marketing). At the event, however, Loïc mentioned that 800 people would attend, and it seemed to me that there were fewer than that. A good showing, but fewer than 1000 people in the same room at the same time. And a lot of the tickets seem like they were comped — i.e., free for friends of friends of Loïc and certain bloggers.

That being said, it was definitely a very cool event. The coolest, most elegant tech event around by far.

It seems that everyone is talking about the fact that online real estate sites are increasing in traffic despite the overall drop in demand. The story’s been getting a lot of press recently, and El Pais, a leading Spanish newspaper, is the latest to jump on the bandwagon, noting that in 2007, Spanish real estate sites doubled their traffic even as demand dropped dramatically.

The relevant data includes:

• 50% of all home seekers begin their searches online
• The total number of Internet users that search on online real estate sites to find apartments has more than doubled, from 1,6 million in 2006 to 3,5 million in 2007
• The increase in users can mainly be explained by the rapid growth of Internet usage in general
• Fernando Encinar, Idealista’s communication director, points to Germany’s ImmobilienScout as an example of the fact that a stagnant market combined with strong growth in Internet usage can still create a highly profitable online real estate business (I’m trying to compile more detailed info to analyze this last assertion in more detail, but the facts speak for themselves — Germany has had a relatively flat real estate market, but ImmobilienScout just got bought at a valuation of €545 million).
• Fernando also notes that properties in Madrid now stay on the market 10% longer (on average, apartments stayed on the market for 189 days this year vs. 172 days last year), while in Barcelona apartments stayed on the market for 35,5% more time (183 days this year vs. 135 days last year).
• 1/3 of the apartments listed on Idealista have decreased in price, and prices have fallen over the last 3 months by 0,5% in Barcelona and 0,9% in Madrid.
• After years of more aggressive increases in the price for listing on their sites, some real estate portals have waived price increases to retain existing clients with lesser budgets.
• The article suggests that the four main challenges for the existing real estate portals are:
  • Finding ways to improve their search filters
  • Offering more and better features
  • Playing a more active role in the sale and purchase process, apart from just providing listings and similarly general information. Alternatively, offering the real estate agents a better return on their investments will be essential in deciding which websites survive and which sites fail.
  • Getting to know the Internet user better, offering more personalized service and the option to participate in helping to generate content/count on the user’s feedback.

I couldn’t agree more. The ideas are clear. Now it’s time to see who executes best.

The guys from DEMO Germany just sent us the video of our presentation. As I mentioned before, I think that DEMO is an awesome event. They’ve sent us the press clippings, and the event itself received a lot of good buzz. And as importantly, it was a great opportunity for us to meet a lot of German investors and other entrepreneurs, which wouldn’t have been as easy if we hadn’t attended DEMO.

I hate seeing myself on film, so I haven’t actually seen the video, but I lived it, so I guess that’s good enough. I remember thinking that I did a decent job at explaining the pitch without much notes or a Powerpoint presentation, but you can feel free to judge for yourself.

As we say every time we present, our goal is to supplement not supplant Google.

It’s a life-changer, a great technology. And combined with YouTube, the ability to retrieve general information from the web is amazing.

What am I talking about?

Well, at DEMO GERMANY a couple of weeks ago, we were literally face to face with Oliver Samwer, one of the trio of German entrepreneurial brothers with a seemingly golden touch. Oliver gave the keynote, and I was in the backstage area with him before he spoke. Our presentation was right after his speech, so there were only a group of 5 of us plus Oliver in the backstage area.

I listened to his speech and thought that he sounded like a nice guy. I’d only started to hear about the Samwer brothers after the sale of StudiVZ to Holtzbrinck Ventures for €85 million back in January 2007. Plus, I’d just bumped into Michael from StudiVZ at Etre in Budapest, so my interest in both the Samwer Brothers and StudiVZ was piqued. Oliver from Red Herring had also told me a bit about them at ETRE, so when I got back home from DEMO Germany, I decided to see what help Google and YouTube might offer.

A little bit of research on Google showed that they are innate entrepreneurs that sold their first company, Alondo.de (a German marketplace site, like eBay) to eBay for €40+ million about 100 days after they founded the company. They then served as managing directors of eBay Germany, which they made into the most profitable international site of eBay. A few years later, they struck gold again with Jamba, which became the market leader for wireless content such as ringtones, pictures, games and videos for mobile phones in the US and Europe. Verisign acquired Jamba in 2004 for $273 million.

So now the brothers focus on helping to create an ecosystem in which entrepreneurs in Europe can thrive. From what I’ve been able to find out, Alex (the youngest brother) runs a foundation that supports Romanian children that can’t afford an education. And Oliver and Marc focus on mentoring and supporting young entrepreneurs, not just with their money but also with their time.

It’s cool to see this kind of thing. The brothers seem profoundly normal and real, without the ego-tripping that sometimes infects very successful people. They seem like good people who are trying to make a difference after their bit of good fortune (and hard work). Either that, or they are amazing actors.

Take a look for yourself.

Oliver Samwer

Marc Samwer

Thomas, one of the potential employees that we met with in Germany, sent me this video from the “super-exclusive” P1 club in Munich - yeah, the one that kicked me out for asking for Beyoncé too many times. I invited Thomas to come along and invited him to one of those €17.50 cocktails.

Anyway, there was a pizza guy there who had a lot of fun spinning his dough. When he saw that Thomas was recording his performance, he started over and gave a show, asking Thomas to record it on his cell phone and send it to his (the pizza guy’s) girlfriend so that she could see him at work.

All I could think was: I hope he’s washed his hands! If not, so much contact with the dough that I might later eat is pretty gross.

Whew! It’s been a hectic month, which explains the delay since my last post. We’ve been very busy bees since the launch.

I’ll go item by item.

Right after the launch, we got contacted by various Spanish newspaper groups, which meant that we were travelling a bit within Spain to discuss possible collaborations.

Then we flew to Cologne via Frankfurt to meet with a potential investor.

Then we flew to Munich to attend the Demo Pitch Camp, which was cool because I met a lot of interesting German entrepreneurs. It was a challenge, because the basic rules of Demo are: i) no powerpoints; and ii) you have to do a live demonstration of your product. Given Murphy’s law, the result is that the experience can be nerve-wracking, but I had a lot of fun. It was also the last weekend of Oktoberfest, so I got to see people of all ages, races and sizes dressed up in traditional Bavarian costumes with men in Lederhosen and women in Dirndl. They even wore the costumes to the dance clubs! It made for a trippy experience seeing people dance to Rihanna in lederhosen!

After Pitch Camp, we flew to Budapest for ETRE. Without a doubt, I have to say that ETRE is THE best conference that I ever attended. Everything is over the top, but with good taste. All of the dinners were in fabulous, historic buildings in Budapest that were unbelievably beautiful. And on top of that, important people just sit next to you and chat. Simon Cook of DJFEsprit sat down next to me at lunch and we had a cool conversation about how start-ups should grow, and compared the approaches in the US and in Europe. I sat down on the bus to go the last dinner and decided that I’d be social (sometimes I prefer to just listen to my ubiquitous iPod). It turned out that the guy next to me was a general partner at Northzone Ventures and he’s also on the board of Schibsted, the parent company of Anuntis Segundamano. We met so many “important” people that it was unreal. When we were eating dinner, Michael Brehm, the co-founder and COO of StudiVZ came up and started chatting with us. At first, I had no clue who he was — there was no ego involved. And when he mentioned StudiVZ, I told him that I remember reading that they had just sold their social networking site for almost $100 million. He confirmed that and we chatted a bit about running a German start-up.

In addition to the luck we had just bumping into people, Farley and Oliver were great about introducing us to possibly interesting contacts. Since they know everyone, they just very informally introduced us to a lot of great people that we might not otherwise have had access to. And then when they weren’t available, we discussed European entrepreneurship while getting toasted with the Red Herring interns.

The truth is that everyone was relaxed and fun. Even some of the VCs that we’d seen at other conferences seemed more mellow, as they approached us to ask for updates as to how we’d evolved since the last time we met.

And the last night was a ball. We all danced to R&B and pop music in a small club that the people at Red Herring had rented out via a local promotor. The overzealous promotor also recruited about 20-30 young, blond girls whose only job was to make sure that the male guests had fun. Interesting, because unlike most events, ETRE is one in which spouses are usually taken along. And we’d just come from a black-tie event, so the wives were in formal gowns and the men were in tuxedos. And the female “entertainers” were dressed in cut-off tank tops and tight jeans with knee-high boots. A surreal way to end an amazing event.

From ETRE we flew back to Barcelona to recover over the weekend, and then it was off to Munich again for DEMO. It was also a wonderful event. I don’t think that it got the press coverage that it deserved, but it was a great opportunity to meet all of the major German VCs and media investors in one room. All but one of the ones that we wanted to chat with came to visit our booth. Some very interesting conversations have begun. And Stefan Herbert and his staff ran a great event that was on time. The keynote speech was by Oliver Samwer, which was cool since the Samwer brothers are among the coolest story of serial entrepreneurs that is out there. Three young German brothers who got internships in Silicon Valley, then went back to Germany to create an eBay competitor that was bought only 3 months later by eBay for a bit more than $40 million.

Stefan, the executive director of DEMO, in particular was very cool. He’s someone that I’ll definitely stay in touch with, and I highly recommend the event for anyone looking to break into the German market. And I definitely agree that a presentation without a Powerpoint and with a live demo is much more exciting and informative, both for the speaker and the audience. The challenge is definitely worth it if you do it right.

The only negative part was getting escorted out of the P1 Club, which everyone tells me is the most exclusive club in Munich. I asked for Beyoncé, and when the DJ wouldn’t play it (even though it was a private party and he was being paid supposedly to play what the attendees wanted), I told him that I thought the club sucked. I was promptly escorted out. I didn’t like the club anyway! The drinks were €17.50 a piece!

So now we’re back in Barcelona. We’ve met with a bunch of possible investors. Some interesting things should be happening to us within the next few months, if all goes according to plan. And I’ll be sure to write about it all on this blog.

Next week, it’s off to Amsterdam, where I’ve been invited to give a 30-minute presentation to the attendees of the International Classified Media Association’s conference. My task will be to explain why vertical search could be viewed as an opportunity for traditional classifieds players.

And immediately after we’ll be headed to the Web 2.0 conference in Berlin. I’m looking forward to that. We’ve made a lot of friends in Germany, and quite a few of them will attend the event.

The only disappointing thing about the last few weeks is that we were also supposed to attend the FOWA conference. Ryan invited us to present when he did the Roadshow visit to Barcelona. We were all ready to go. We exchanged emails until the Sunday before the conference, which was then followed by . . . dead silence. The last correspondence had been that they would confirm the details of our presentation (how much time we’d have, what slot we’d present, etc.). When no one responded to our emails, we called all the numbers on his business card and website, but no one would answer our emails or phone calls. About a week after the conference, Ryan sent me a brief email telling me that it was unfortunate that things had turned out as they had, but that he simply hadn’t had the time to get back to us. It’s understandable to a certain extent, but it definitely made me appreciate a lot more the professionalism of the DEMO and Red Herring people. I think it’s not so cool to do a roadshow, invite (without any solicitation on our part) entrepreneurs to present, exchange emails confirming the invitation, and then simply fail to respond.

But that might just be me.