Monday, December 16, 2024(Washington, DC) – Today, Mayor Muriel Bowser launched the DC Venture Capital Program, a new $26 million fund designed to make equity investments for early-stage, DC-based tech companies, prioritizing underrepresented founders.
“Washington, DC is the best place in the nation to launch and grow a business. We know, however, that sometimes talent alone isn’t enough to succeed – and that is why the city has stepped in with a suite of innovative grants to help more entrepreneurs get their fair shot,” said Mayor Bowser. “This DC Venture Capital Program is about investing in people, jobs, and the future of DC’s tech economy.”
The DC Venture Capital Fund represents a transformative commitment to DC-based businesses by leveraging public dollars to attract private investment. For every dollar the District invests, private investors are required to contribute at least an equal amount, effectively doubling the total funding available to DC startups to a minimum of $52 million.
The fund utilizes State Small Business Credit Initiative (SSBCI) funding, provided to the District by the U.S. Treasury Department. SSBCI, created in 2010 and renewed as a part of the American Rescue Plan Act (ARPA) in 2021, is a federal program designed to drive business growth in states and jurisdictions across the country.
The Office of the Deputy Mayor for Planning and Development (DMPED) selected K Street Capital as the Program Administrator for the DC Venture Capital Fund. Leveraging their extensive investment experience and deep ties to the local community, K Street Capital will oversee the deployment of SSBCI dollars to by contracting with local and regional venture capital firms. These firms will work directly with DC-based startups to establish funding deals, ranging from $250,000 to $5,000,000. DMPED will provide oversight and management of KSC’s administration of the program.
“K Street Capital could not be more excited to launch the new DC Venture Capital Fund in partnership with Mayor Bowser and DMPED,” said Paige Soya, Managing Partner at K Street Capital. “Capital is the most critical resource early-stage startups need, yet it is also the scarcest. This is a huge step forward for DC and it will have a far-reaching impact on the community.”
Mayor Bowser has also invested $4.2 million to 39 businesses through the District’s Inclusive Innovation Equity Impact Fund (IIEIF), a program designed to level the playing field, ensuring that entrepreneurs who often face barriers to early-stage funding have access to the resources they need to succeed. IIEIF supports entrepreneurs who are working to get their businesses off the ground, as well as local business owners who are looking to expand in DC. Investments include low-interest loans, revenue-based financing, and equity investments, supporting companies in tech, consumer products, and high-growth sectors. In October, Mayor Bowser announced 17 DC businesses that received $1.8 million through the third round of the program.
Interested investors, fund managers, and venture capital firms, are encouraged to reach out to K Street Capital and DMPED to learn more about the program. More details pertaining to how businesses can apply for SSBCI equity investments will be released in the coming months.
To learn more about the DC Venture Capital Fund, visit dmped.dc.gov/page/dc-venture-capital-program.
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