Paddy Cosgrave resigned as chief executive of Web Summit yesterday, succumbing to days of pressure from tech giants and investors over his comments about Israel.
The resignation came after a slew of companies and investors said they would boycott the four-day event following Cosgrave’s comments last week that seemingly accused Israel of war crimes in Gaza. In a statement he said: “Unfortunately, my personal comments have become a distraction from the event, and our team, our sponsors, our start-ups and the people who attend. I sincerely apologise again for any hurt I have caused.”
A company spokesman said a new boss would be appointed “as soon as possible” and Web Summit 2023 in Lisbon would go ahead as planned next month.
The decision to take a step back was “completely Cosgrave’s own”, according to a source close to the business. “It had been playing on his mind for some days,” they said. “He just hopes that people accept his apology and get back to focusing on the event.”
Cosgrave, a founder of Web Summit, owns 81 per cent of the company, and sources close to the business say it will probably be an “experienced” member of the executive team who takes over his role. Johnny Fallon, strategist at Carr Communications, told The Sunday Times that whoever fronts the company, it will be important that there is “distance put between themselves and Paddy”.
Advertisement
Critics say an independent chief executive from outside the company or board of directors are needed to save the brand. Bobby Healy, the tech entrpreneur who had a very public spat with Cosgrave, said that this was Cosgrave’s “last attempt to salvage content”. “Without content, there is no summit,” he said. “To me it’s a token offering unless he also creates an independent board.”
TikTok, the Chinese social media giant, was the latest business to boycott the event, with a spokesman confirming to The Sunday Times yesterday that it would not be in attendance. More speakers’ images disappeared from the company’s website yesterday, including the comedian Amy Poehler, Nick Clegg of Meta and Brad Smith of Microsoft.
The world’s largest technology companies, including Google, Meta, Intel, Amazon and Siemens, announced their departure from the event late last week. It is set to take place in Lisbon, Portugal, on November 13-16.
Big-name speakers such as Garry Tan, a venture capitalist, and Ravi Gupta of investment firm Sequoia Capital pulled out following tweets published by Cosgrave last Wednesday.
Cosgrave later issued an apology on the Web Summit website, saying he understood “the timing of what I said, and the way it has been presented has caused profound hurt to many”. It did not seem to work, though, with Intel setting the ball rolling last Thursday as the first to say it was pulling out. Siemens followed.
Advertisement
Industry experts said that it was the outspoken Cosgrave’s first time to wade into geopolitics and those who support his conference did not like it.
Cosgrave sent a communication to staff on messaging app Slack last Friday telling them that the brand would weather the storm, according to a source close to the business. They said that, despite news reports, Web Summit had “built enough financial reserves to navigate the future”.
“Cosgrave emphasised the firm had survived other crises including Covid,” they said. “He said the company will still put on a brilliant show [next month], where over 70,000 people will get to network and meet and discuss ideas around investment and the future.”
• Laura Roddy: Has Paddy Cosgrave cancelled himself?
The source said that, despite some large exits over the past week, 987 people had signed up to attend the event on Thursday alone. At €1,095 for the cheapest ticket, that meant €1 million raised on one day if everyone opted for basic entry.
Advertisement
The conference also sells a VIP ticket for €4,950, which gives the buyer access to a VIP lounge, catered food and evening events. Meanwhile, company executives can opt for even more exclusive packages that cost €24,950 and give access to speakers.
As of yesterday evening, Antonio Costa, Portugal’s prime minister, and Marcelo Rebelo de Sousa, the president, were still listed to attend, while Carlos Moedas, mayor of Lisbon, was also named as a speaker. Other notable speakers include Patrice Evra, a former footballer, and Neil Jordan, the film director.
Web Summit received €11 million annually from the Portuguese government to host the conference and has created a product that gives hopeful start-ups the opportunity to network with investors.
Founded in 2009 by Cosgrave, Daire Hickey and David Kelly, it has grown to become the largest tech conference in Europe, but has been embroiled in controversy, with its founders falling out publicly and airing their grievances in Ireland’s High Court.
