To support entrepreneurship and address gaps in startup funding, Mayor Muriel Bowser announced the launch of the DC Venture Capital Program, a $26 million fund focused on early-stage tech ventures in the nation’s capital. The program aims to assist founders who have historically faced challenges in accessing venture capital. “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,” Mayor Bowser stated, as reported by the official press release.
The fund is structured around a public-private investment model, where for every dollar provided by the city, private investors are required to match it, effectively increasing the minimum financial support to $52 million for early-stage companies. This initiative is backed by the State Small Business Credit Initiative (SSBCI) funding from the U.S. Treasury Department. The SSBCI was established through the American Rescue Plan Act (ARPA) of 2021 as part of a broader effort to promote business growth across various regions.
K Street Capital is overseeing the DC Venture Capital Program as the Program Administrator. With their extensive investment expertise and strong local connections, they will manage the distribution of SSBCI funds to local and regional venture capital firms, which will then provide seed investments ranging from $250,000 to $500,000 to DC startups. “K Street Capital could not be more excited to launch the new DC Venture Capital Fund in partnership with Mayor Bowser and DMPED,” Paige Soya, Managing Partner at K Street Capital, said hailing the program’s launch as a prodigious leap for the DC community, according to the official press release.
Mayor Bowser’s focus on inclusive innovation extends beyond the DC Venture Capital Program. Her administration has allocated $4.2 million to 39 businesses through the District’s Inclusive Innovation Equity Impact Fund (IIEIF), supporting ventures that face challenges in securing initial funding. In October, 17 DC businesses received $1.8 million in the program’s third round, highlighting ongoing efforts to strengthen local economic growth in tech and other high-growth sectors.
The DC Venture Capital Program is inviting investors, fund managers, and venture capital firms to get involved with the goal of enhancing the success of local startups. This call to action emphasizes the need to address equity gaps in venture capital within the District. Interested parties are encouraged to contact K Street Capital and DMPED for more information. Details on the business application process for SSBCI equity investments are expected to be available in the coming months.
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