United States
Washington, D.C.
"As the global center for policy, DC has rich assets that also make it a unique innovation hub. Strong talent (and top city for women in tech) and deep expertise in important industries combined with deep, sustainable wealth make this region a strong ecosystem."
Highlights
Though its reputation as a political center and capital city precedes it, Washington D.C. is building a solid standing as one of the world’s biggest tech hubs. The city ranked #5 in the World's 10 Best Cities for Tech Workers list for its notable number of tech employees—around 243,800—and opportunities for knowledge building in federal agencies, such as the Federal Communications Commission and Department of Homeland Security. Nineteen Washington, D.C.-headquartered companies are listed on the 2023 Fortune 500. Forbes ranked Washington, D.C. the third most educated city in America in 2023, and it is home to several prestigious universities, including Georgetown University, Howard University, and American University.
Techstars Washington has a goal of providing equitable access to funding and support for underrepresented founders. It welcomed 12 startups to its Space Accelerator in 2023. The Golden Triangle Business Improvement District announced a sponsorship of up to $200,000 to expand workforce development programs within the Penn West Equity and Innovation District in September 2023.
TechConnect World Innovation Conference took place here in June 2024, and Venture Capital World Summit took place in May. Recent large deals include data platform Mapbox’s September 2023 round, raising the startup’s total funding amount to $614.2 million. Energy management startup GridPoint has raised $532.6 million over 13 rounds, most recently in June 2023. Space data analytics company HawkEye 360 raised $372.3 million over 10 rounds, including one in October 2023.
Ecosystem by the Numbers
Sub-Sector Strengths
Life Sciences
The DC/Baltimore region is #3 in the U.S. for Life Sciences research talent, according to CBRE’s Life Sciences Research Talent 2023 report. The report cited the area’s large, dense talent pool and large number of data, biological, and life scientists. As of January 2024, Johnson & Johnson JLABS hub was home to 100+ portfolio companies with over $3.5 billion invested over the last decade. Early-stage biotech company Deka Biosciences raised $29.9 million in a December 2023 round.
Cybersecurity
The Trellix Cybersecurity Summit was held in February and the Billington CyberSecurity Summit took place in September. The Cybersecurity Accelerator Program offers skill and network building opportunities to founders in the Washington, D.C. area. Online security platform ID.me has raised $407.2 million in funding over 22 rounds, most recently in a Series D April 2023 round. Cybersecurity platform Shift5 has raised $105.5 million over four rounds, most recently in a June 2023 Series B round.
Cleantech
The Climate Commitment Act pledges to reach carbon neutrality by 2045. The Loan Programs Office and Cleantech Leaders hosted the first annual Demonstrate Deploy Decarbonize 2023 to discuss deployment of the technologies critical to reach a net-zero economy by 2050. The US Decarbonization and Industrial Transition Summit was held in May. Carbon-free energy producer X-energy raised $281 million in funding over five rounds, including a December 2023 Series C round.
Reasons to Move Your Startup to Washington, D.C.
Access to Funding
The Office of the Deputy Mayor for Planning and Economic Development’s (DMPED) Vitality Fund assists businesses within targeted sectors to relocate, expand, or remain in D.C. In October, DMPED and 1863 Ventures opened applications for the latest round of the Inclusive Innovation Equity Impact Fund. In November, Washington, D.C. received $62 million from the U.S. Department of the Treasury to help residents launch startups.
Tax Incentives
Qualified high technology companies can claim tax benefits including a reduced capital gains tax rate of 3%, a new hire wage tax credit of up to $15,000 annually for each qualified disadvantaged employee, and a new hire retraining tax credit. The Move to DC incentive offers relocation reimbursements up to $7,500 for each employee and a five-year freeze on real property taxes for office improvements.
Tech Talent
The Scoring Tech Talent 2023 report from CBRE named D.C. the fourth best market for talent thanks to its large talent pool and number of tech graduates. The D.C. region ranks #1 for women tech professionals. In October, D.C. hosted the EDGE Consortium, a coalition of universities and engineering schools with women presidents and deans of engineering, with a goal to bring more women and minorities into the STEM field.
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