Key Takeaways
- • DC is launching a $26 million venture fund of funds, the DC Venture Capital Fund, to back early-stage startups within the District, following Maryland and Virginia in creating state-level vehicles for early-stage investment.
- • Private investors must at least match DC's commitment, bringing the minimum total capital to $52 million; the initial funding came through the US Treasury's State Small Business Credit Initiative.
- • K Street Capital will identify five to seven fund managers who will act as limited partners, with deal sizes ranging from $250,000 to $5 million.
- • The fund is designed to be evergreen, with returns recycled into the program, and aims to begin deploying capital before the end of 2025.
- • Underrepresented founders will be prioritized, and the program is led by the Deputy Mayor for Planning and Economic Development (DMPED).
Summary
Washington, DC is launching its own $26 million venture capital fund to support early-stage companies within city limits, district leaders announced Monday. The DC Venture Capital Fund is led by the Deputy Mayor for Planning and Economic Development (DMPED) and structured as a fund of funds with pooled capital. The program follows similar state-backed vehicles in neighboring Maryland, where TEDCO (the Maryland Technology Development Corporation) was established in 1998, and Virginia, where the Virginia Innovation Partnership Corporation (VIPC) dates to the mid-1980s.
Private investors are required to match DC's contribution at minimum, implying total available capital of at least $52 million. The initial funding came through the US Treasury's State Small Business Credit Initiative, according to officials, and the fund is intended to be evergreen. Deputy Mayor Nina Albert said at the press conference that the goal is for supported companies to grow, become financially stable, and generate returns that the district can reinvest in future efforts.
K Street Capital, a seed-stage and angel investment firm and resource group founded in 2012, will manage the program. The firm will identify five to seven fund managers, per DMPED Deputy Chief of Staff Jamie Scott, and capital will be deployed to those managers as limited partners. A portion of the funds covers administrative costs, including K Street Capital's fees for identifying managers and marketing the program, according to DMPED Communications Director Benjamin Fritsch. Although K Street Capital manages the money, the fund remains owned by DC and overseen by DMPED. Paige Soya, managing partner at K Street Capital, said at least one fund manager will be selected by the end of 2024 and that deployment is targeted before the end of 2025. Interested managers can complete an interest form on the firm's website, with information sessions planned after the new year.
The fund will target pre-seed and seed-stage companies with potential to scale within a decade, with priority given to underrepresented founders. Deals will range from $250,000 to $5 million. Mayor Muriel Bowser emphasized that the fund is restricted to startups in DC proper, not the broader DMV region. Earlier this fall, DC invested $4.2 million in nearly 40 local businesses through the Inclusive Innovation Equity Impact Fund. Officials said emerging areas such as cybersecurity and AI are increasingly central to the District's economy.
Private investors are required to match DC's contribution at minimum, implying total available capital of at least $52 million. The initial funding came through the US Treasury's State Small Business Credit Initiative, according to officials, and the fund is intended to be evergreen. Deputy Mayor Nina Albert said at the press conference that the goal is for supported companies to grow, become financially stable, and generate returns that the district can reinvest in future efforts.
K Street Capital, a seed-stage and angel investment firm and resource group founded in 2012, will manage the program. The firm will identify five to seven fund managers, per DMPED Deputy Chief of Staff Jamie Scott, and capital will be deployed to those managers as limited partners. A portion of the funds covers administrative costs, including K Street Capital's fees for identifying managers and marketing the program, according to DMPED Communications Director Benjamin Fritsch. Although K Street Capital manages the money, the fund remains owned by DC and overseen by DMPED. Paige Soya, managing partner at K Street Capital, said at least one fund manager will be selected by the end of 2024 and that deployment is targeted before the end of 2025. Interested managers can complete an interest form on the firm's website, with information sessions planned after the new year.
The fund will target pre-seed and seed-stage companies with potential to scale within a decade, with priority given to underrepresented founders. Deals will range from $250,000 to $5 million. Mayor Muriel Bowser emphasized that the fund is restricted to startups in DC proper, not the broader DMV region. Earlier this fall, DC invested $4.2 million in nearly 40 local businesses through the Inclusive Innovation Equity Impact Fund. Officials said emerging areas such as cybersecurity and AI are increasingly central to the District's economy.
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