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Tony Hsieh, Founder Of Zappos And Downtown Project On Startup Communities [video][sxsw]

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Tony Hsieh proudly points out that he is wearing a Zappos t-shirt. (photo NMI 2013)

Tony Hsieh isn’t just a guy who created a household brand, made money and then decided to give some to charity. Although his Downtown project, an effort to revitalize downtown Las Vegas, is funded largely by him, he is quick to point out that it takes a village to raise a startup community.

At South By Southwest over 200 people who identified as being part of the Vegas Tech community made the trek (on their own dime) from Las Vegas to Austin to be part of SXSW. More than double that number are participating in rebuilding the downtown area of Las Vegas that “tourists don’t really see” according to Hsieh.

Hsieh and other investors have pulled together $350 million dollars to build up the community around the old city hall building, which in six months will be the new world headquarters for Zappos. Hsieh originally thought that Zappos would build it’s own campus around the block city hall is on, but than decided that doing so would be too inward focused. While Google has a lot of real estate in Mountain View and Apple has a lot of real estate in Cupertino, both company’s campuses, for the most part, keep to themselves.

“Those campuses are really insular and don’t really integrate or ┬ácontribute to the community around them” Hsieh said of Nike, Google and Apple.

Hsieh is hoping that, by recruiting statup companies, small businesses and others to the downtown area, an ecosystem will flourish and surround his own company with creative, forward thinking people.

The Downtown Project has committed $50 million to invest in small businesses, $50 million to tech startup companies, $50 million to arts, education and music and $200 million to real estate. They are trying to deal with the statistic that when a cities size doubles productivity goes up 15%, but when companies get there productivity generally goes down.

Hsieh and company have already recruited 20 startups to downtown Las Vegas. They’ve also been able to get commitments from folks that love what they are doing in Las Vegas but for some reason can’t move there. Many people have committed to speaking to the Vegas Tech Community, holding office hours or doing other community minded things.

This entire plan was demonstrated in high gear through many events at SXSW where people were packed wall to wall. It wasn’t just the 200 Las Vegas people either, people from startup communities across the country and around the world were clamoring for the opportunity to hang out with the positivity bubble that surrounds Vegas Tech.

The Vegas Tech community was also on hand throughout SXSW Interactive to show off what the community is like in hopes that the SXSW Las Vegas event this summer will be a huge success.

Check out the video below of Hsieh speaking on the Startup Communities panel at SXSW 2013.

Vegas Tech threw an awesome party at SXSW click here for photos and video

We’ve got a ton more startup coverage from SXSW here

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