A Resource Guide for Creating or Launching a Small Business€¦ · with more than 80 coworking spaces, accelerators, and incubators spread throughout the city. DC’s mix of top

A Resource Guide for Creating or Launching a Small Business

ENTREPRENEUR TOOLKIT: TECH

iiSeptember 2018

The technology sector plays a major role in diversifying Washington, DC’s economy. DC tech entrepreneurs enrich our communities through a wide range of products and services, including mobile apps, software, university and government tech transfer, biotechnology, UI/UX and web design, defense technology, augmented and virtual reality, hardware production, and much more.

iN THiS TOOLKiTThe DC AdvantageRegulationsFinding & Developing TalentFinancial Incentives & ResourcesDC Accelerators, Incubators & Flexible Office SpaceGet Plugged into the DC Tech Community

The Entrepreneur Toolkit is a publication of WDCEP. This document is intended to serve as a guide to start, grow, or expand your business in DC. It is not intended to supplant legal or financial advice. Although every attempt was made to ensure the quality of the information contained in this document, WDCEP makes no warranty or guarantee as to its accuracy, completeness, or usefulness for any given purpose.

WASHINGTON DC ECONOMIC PARTNERSHIP 1

WELCOMEWelcome to Washington, DC—the capital of inclusive innovation. DC is home to one of the world’s most talented, innovative, and diverse tech ecosystems. The District is not only home to several large successful tech companies like Mapbox, EVERFI, and Optoro, but it also features a thriving startup ecosystem with more than 80 coworking spaces, accelerators, and incubators spread throughout the city. DC’s mix of top talent and commitment to remaining the capital of inclusive innovation make it an ideal place for entrepreneurs to start or grow their tech company.

Are you ready to turn your innovations into a reality?

WDCEP is Here to Help! Looking to start or grow your tech business in DC? The Washington DC Economic Partnership (WDCEP) can help. Whether you’re a new startup or an established company looking to relocate or expand, WDCEP provides resources, introductions, and promotion to help your business thrive in the District.

We created this Entrepreneur Toolkit specifically for the DC tech industry to supplement our more comprehensive and detailed DC Doing Business Guide, which you can download at wdcep.com. We have done all the preliminary research for you so that you can focus on bringing your business to life.


2

THE DC ADVANTAGEPeople are often attracted to Washington, DC for its politics and power, but increasingly more are discovering that the city is a thriving center for technology and entrepreneurship.

Talented & inclusive Workforce

DC’s tech community is diverse, inclusive, and active. Multiple community and networking events happen every day. Being the nation’s capital, DC attracts diverse creative talent that provides a rich ecosystem for new enterprises and new opportunities in the city.

Supportive Tech Community

DC is home to the federal government, 16 universities, and many government and private-sector research institutions, making the District a global hub for innovation in technology, policy, and finance among many other disciplines. Governors, mayors, heads of state, university presidents, CEOs of energy companies, utilities, and hospital groups—all of these people come through Washington making DC a prime location for technology companies in regulated industries.

international Visibility

The world recognizes DC as an international and national magnet for domestic and foreign affairs

including over 180 embassies and foreign councils. DC is also home to the most iconic financial tenants in the world: the World Bank, the International Monetary Fund, and the Inter-American Development Bank. With so many different nationalities flowing in and out of these institutions, every language and ethnicity can be found in Washington, DC, making it an international gateway.

Access to Available investment, Business Opportunities & Capital Resources

Washington, DC entrepreneurs have access to a variety of funding sources from local and federal government grants to venture capital. The Washington, DC region has an abundance of wealth and is home to seven of the top ten wealthiest counties in the nation. With a growing angel investor community, access to accelerators, and proximity to federal and local government funding sources, DC is an ideal location for startups to do business.


Washington, DC is:

• #1 Strongest Economy in the U.S. (Business Insider, 2018)

• #1 Best U.S. Tech City for Women (SmartAsset, 2018)

• #1 U.S. Public Transportation System (SmartAsset, 2018)

• #2 Most Educated City in the U.S. (WalletHub, 2017)

• #3 Best Tech City in the U.S. (Cushman & Wakefield, 2017)

• #4 Most Innovative State in America (WalletHub, 2018)

• Best Startup Hub in the U.S. (2017 Kauffman Growth Entrepreneurship Index)

• Top 10 Global City for Female Entrepreneurs (The Dell We Cities Index, 2016)

What’s awaiting you in DC: • Demand for innovative tech solutions for local, national, and global issues

• Extensive tech programming, including pitch competitions, mentoring, and one of the largest professional Meetups in the country, DC Tech Meetup

• Over 80 coworking spaces, accelerators, and incubators

• A highly skilled and educated workforce

• Proximity to federal regulators and purchasers

• City-wide initiatives that support and promote inclusive innovation

• 9 major universities within 20 miles of DC with tech and data science degree programs

• Multiple full-time and part-time computer programming schools

“As an entrepreneur, I’m privileged to work in a community where the creative juices are always flowing and you have the support you need at your fingertips. DC boasts enthusiastic private and public capital partners—all of which have been critical for my growing fintech company. The unique access to policymakers and thought leaders is only possible in our nation’s capital; and this, coupled with the diverse and vibrant local culture, make DC a great place to work and live.”

—Marla Blow, CEO, FS Card


4

DO iT RiGHT ⊲ REGULATiONSMaking Your Business Legal

➊ Complete Business Registration— DC Department of Consumer and Regulatory Affairs (business.dc.gov)

➋ Apply for Employer Identification Number (bit.ly/EIN-IRS)

➌ Register with the DC Office of Tax and Revenue and complete the FR-500 to receive your DC Business Tax Identification Number (mytax.dc.gov)

➍ Receive Certificate of Registration from the Office of Tax and Revenue

➎ Complete the Clean hands Certificate affidavit (ocfocleanhands.dc.gov/cch)

➏ Apply for a Certificate of Occupancy (bit.ly/CofO)

➐ Food service business applicants are required to submit a final DOH inspection report. (bit.ly/DOHinspection2)

➑ Apply for Basic Business License and/ or other applicable licenses, according to your business activities. (dcra.dc.gov/node/539512 and business.dc.gov)

➒ Register your Business Trade Name (dcra.dc.gov)

More information

Business Licensing & Registration (DCRA) dcra.dc.gov/book/just-starting-your-business

Zoning interactive Map maps.dcoz.dc.gov/zr16 dcoz.dc.gov

Public Space Permits bit.ly/DDOTpublicspace

Building Permits, Building Plats, Trade Permits, inspections dcra.dc.gov


FiNDiNG & DEVELOPiNG TALENTLocating the right talent for your startup can be a major challenge, but keep in mind that DC has an extensive job market with a highly skilled workforce. Below are some of the resources available in the District that can help you find the right talent for your startup or help train you or your team with the technical skills you need.

LOCAL JOB BOARDS FOR TECHNOLOGY JOBSTech.Cojobs.tech.co

Technical.lytechnical.ly/dc/jobs

Hiredhired.com

AngelListangel.co

Upwork™ Freelancers upwork.com

DC Tech Jobs Facebook Groupbit.ly/dctechjobs

DC Digital Jobs Facebook Group

LOCAL JOB BOARDS FOR TECHNOLOGY JOBSFind talent, train your staff, or learn to code. Washington, DC is home to a wide variety of coding bootcamps that can help individuals kickstart their career in tech. Coding bootcamps are intensive programs that teach people with little or no technical background how to code and build applications on a professional level in as little as eight to twelve weeks. Coding bootcamps can be a great resource to find entry-level talent for a startup or to train existing staff with needed technical skills.

PROGRAM COURSES FORMAT

Byte Back PC for Beginners, Office Track, Microsoft Office Specialist Certification in Excel, CompTIA A+ Certification

IP, PT

Code for Progress Back-End, Front-End IP, FT

Data Society Data Analyst, Network Analyst, Text Mining Analyst: Coming Soon

On, FT, PT

Flatiron School Software engineering, Data Science IP, FT, PT

General Assembly Coding, Design, Data, Marketing, Business On, IP, FP, PT

Hear Me Code Beginners Coding: 3 Lessons IP, PT

NodeSchoolDC Open Source Workshops, Self Guided (Workshoppers) w/ Node.js, npm, and a text editor

On, Off

Thinkful Stack Developing, Data Science, Front End Developing, Back End Developing, Mobile Developing, Design

On, IP, FT, PT

Coder Camp Full Stack Web Development, Coding from Scratch On, IP, FT, PT

IP - In Person PT - Part Time FT - Full Time On - Online Off - Offline


6

FiNANCiAL iNCENTiVESThe District offers a variety of incentives for entrepreneurs who are looking to locate or expand their business in DC. This section gives you an array of programs set up to help businesses succeed in DC.

QUALiFiED HiGH TECH COMPANY (QHTC) iNCENTiVES

Washington, DC offers one of the most attractive incentive packages for high-tech businesses in the country. The DC Tech Incentives provide certain credits, exemptions, and other benefits for a Qualified High Technology Company (QHTC). A QHTC can leverage the program to develop their workforce, secure affordable facilities for their business and benefit from reduced real estate, personal property, sales, and income taxes. To qualify for incentives, businesses must be located in the District, employ at least two individuals, and derive a majority of revenue from qualifying high technology activities.

Grow in DC • 0% corporate franchise tax for first 5

years of business in DC • Capital gains tax only 3% for

qualifying investments in QHTCs (effective January 2019)

• New hire wage tax credit: up to $15,000 annually (for 24 months) for each qualifying employee

• New hire retraining tax credit: up to $20,000 per qualifying employee

• 10-year tax exemption from the date of acquisition on personal property used for operating your business

Move to DC • Relocation tax credit: up to $7,500 for

each employee • 5-year freeze on real property taxes

for office improvements

Thrive in DC • Lifetime reduction of corporate

franchise tax from 8.25% to 6% • Sales tax exemption on purchase of

hardware, software and equipment, and on qualifying sales

• Increased business expense deduction: up to $40,000 for depreciable assets

MORE iNFO Office of the Deputy Mayor for Planning and Economic Development (DMPED)(202) 727-6365 | [email protected] | dmped.dc.gov/page/qualified-high-tech-companies-qhtc


GOVERNMENT FiNANCiAL RESOURCES

DC BizCAP - innovation Finance ProgramThe DC BizCAP - Innovation Finance Program (IFP) is a program administered by the DC Department of Insurance, Securities, and Banking (DISB) that provides capital to investors that co-invest in DC startups and emerging companies that seek financing alternatives to traditional commercial financing.

BENEFIT: The IFP provides the capital either (1) through a co-investment with an Innovation Finance Company into the small business; or (2) by investing as a limited partner in an Innovation Finance Company that shall then make an investment into that small business. (Maximum of 50% of investment up to $500,000)

MORE INFO: Department of Insurance, Securities, and Banking (DISB)(202) 727-8000 • [email protected] • ⊲ disb.dc.gov

Great Streets Small Business GrantsGreat Streets Small Business Grants are competitive grants for qualified small business owners who wish to improve their place of business.

BENEFIT: Up to $50,000

MORE INFO: Office of the Deputy Mayor for Planning and Economic Development (DMPED)⊲ (202) 741-8905 • greatstreets.dc.gov

Small Business innovation Research (SBiR) & Small Business Technology Transfer (STTR) Grant ProgramThe federal SBIR and STTR programs are an important source of seed and early-stage capital for technology startups throughout the U.S. Each year, SBIR and STTR are the source of more than $2 billion in proof-of-concept and very early-stage funding for qualified small businesses.⊲ sbir.gov

VENTURE CAPiTAL AND OTHER FUNDiNG SOURCESAccess to capital is a top priority for most emerging technology companies. Funding sources from angel investment to private equity can be found in the District. Below is a sampling of some of the investment firms and investor groups found in Washington, DC.

Angel Venture ForumA group of more than 30 active angel investors located throughout the Mid-Atlantic region. The Angel Venture Forum process makes it easier for companies to meet the highest number of angel investors in one place over the shortest period of time.⊲ angelventureforum.com

Mid-Atlantic Venture AssociationAn association of private capital investors in high-growth enterprises in the Mid-Atlantic region. MAVA’s TechBUZZ event is one of the area’s premier pitch events for early-stage entrepreneurs.⊲ mava.org

NextGen Venture PartnersA DC-based network-driven venture firm made up of startup investors that are leaders in the DC startup community who use their collective skills and connections to support the growth of their portfolio companies. ⊲ nextgenvp.com

DC Community VenturesDC Community Ventures is a community development venture capital fund that seeks to invest in companies that deliver above-average financial returns as well as social impact for the communities in which they operate.⊲ dccommunityventures.com


8

DC ACCELERATORS, iNCUBATORS & FLEXiBLE OFFiCE SPACEWith limited resources, another challenge for startups can be identifying and securing appropriate and affordable office space. For early-stage technology companies, this can be provided by incubators, accelerators, and flexible office spaces. These locations offer more than just office space—they provide access to educational programming, technical assistance, mentors, capital, and the opportunity to easily network with other entrepreneurs.

ACCELERATORS & iNCUBATORS

Both incubators and accelerators provide startups with guidance to advance their businesses and help startups become investment-ready. Incubators support idea and early-stage startups by providing resources that help startups through the difficult and vulnerable early stages of development. Accelerators support the advanced growth of existing companies through an accelerated timeframe and provide entrepreneurs with access to capital, mentors, and valuable networks. Below are some of the accelerators and incubators you can find in DC.

17761776 is a public benefit corporation that funds and supports high-growth startups focused on solving society’s most fundamental challenges in sectors like education, energy, transportation, and financial services. 1776 supports startups through its innovation curriculum, mentorship, investment, and programming. ⊲ 1776.vc

DCodeDCode is an accelerator program for technology companies looking to enter the federal government market. DCode provides access to a network of potential partners and customers, mentorship, hands-on strategic planning, and one-on-one sessions with government experts. ⊲ dcode.co

Halcyon incubatorThe Halcyon Incubator is an 18-month, 3-phase fellowship that offers extensive benefits to social entrepreneurs—5 months of rent-free housing, 12 months of rent-free workspace, business

mentoring, leadership coaching, and a stipend during the residency phase.⊲ halcyonhouse.org

inclusive innovation incubator (in3)DC’s first community space focused on inclusion, innovation, and incubation. In3 provides a collaborative environment where under-resourced members have access to the space and services needed to build or grow a successful business, including workshops and trainings, mentoring, office and desk space, and networking events.⊲ in3dc.com

The HiVE 2.0The only small business incubator located east of the Anacostia River, The HIVE 2.0 provides coworking space and support for small business, nonprofits, and creative professionals from all industries. The HIVE 2.0 offers flexible office space, business support, technical assistance and networking events.⊲ thedchive.com


SEED SPOTSEED SPOT is an accelerator focused on supporting social entrepreneurs creating a product, service, or technology that improves lives or makes the world a better place. SEED SPOT provides full-time and part-time programs that provide entrepreneurs access to resources, mentors, business fundamentals, community partners, and capital resources.⊲ seedspot.org

Village CapitalVillage Capital uses the power of peer support to change the traditional dynamics between investors and entrepreneurs. They recruit entrepreneurs solving specific problems in agriculture, energy, education, financial inclusion, and health, and then award pre-committed seed funding to the two ventures ranked highest by their peers at the end of every program.⊲ vilcap.com

FLEXiBLE OFFiCE SPACES

With benefits such as networking opportunities, flexible hours, and professional work environment, DC’s growing startup and small business community have embraced flexible workspace options. In DC, over 80 shared workspaces now offer everything from individual offices to shared desks to on demand room access. Below is just a sampling of the various companies offering flexible office space in the District of Columbia.

NWNE

SW SE

AdvantEdgeAlleyBreatherCanvasCarr WorkplacesCoveDC Workspaces Flex Office SpaceMakeOfficesMetro OfficesOpenGovHubPunchRockRegusSwingspaceThe HIVE 2.0WeWork & WeWork Labs


10

ADDiTiONAL RESOURCESFounder instituteThe Founder Institute is an idea-stage accelerator and startup launch program that provides early-stage and aspiring entrepreneurs with the structure, training, mentor support, and global network needed to start an enduring company.⊲ fi.co

Project 500™Project 500 is a free business development program to help diverse businesses scale in terms of revenue, staff and investment retained. Their goal is to recruit and retain up to 500 businesses to receive hands on training, capacity building, mentoring and networking to advance the economic success of their businesses and their communities.⊲ project500.org

Vinetta ProjectThe Vinetta Project DC provides high potential female founders with access to proprietary resources, exclusive networks and capital from vetted investors. ⊲ vinettaproject.com

BEACON Entrepreneurship initiative for WomenBEACON is a community-led campaign that works with businesses, investors, government officials and mentor programs to bring more resources and opportunities to women entrepreneurs in the District.⊲ thebeacondc.com

SCORE Mentoring ProgramSCORE is a nonprofit association, supported by the U.S. Small Business Administration, dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship.⊲ score.org

DC Small Business Development Center NetworkThe Small Business Development Center (DC SBDC) Network provides high quality one-on-one consulting, training and information resources to empower new and existing businesses.⊲ dcsbdc.org

“In DC we (Open Data Nation) find people to join our team who are technically sophisticated data scientists and technologists and also amazing people with the passion, ambition, and drive to make the world a better place.”

—Carey Ann Nadeau Founder & CEO, Open Data Nation


GET PLUGGED iNThe obstacles and challenges encountered while launching a successful business are not easily codified in textbooks. Entrepreneurs learn best through trial and error and from interacting with others who have experienced similar struggles. Networking organizations and events allow entrepreneurs to exchange valuable information with each other and members of their support community. Check out some of the options DC has below.

LOCAL NETWORKiNG GROUPS

DMV StartupDMV Startup runs a Facebook group and Squarespace wiki that helps connect entrepreneurs in the broader DC area.⊲ dmvstartup.org

Fosterly A community of entrepreneurs, creators, creatives, and collaborators, all working together to tackle new challenges in business and technology.⊲ fosterly.com

DCFemTechA collective of 25+ DC/metro women-in-tech orgs who collaborate and streamline events. DCFemTech does Code & Coffee social events.⊲ dcfemtech.com

DC Web WomenA professional organization of over 3,000 members committed to the support and advocacy of women and girls in technology by providing a community in which they can develop, nurture, and promote their leadership, technical and professional skills.⊲ dcwebwomen.org

Black Female FoundersBlack Female Founders (#BFF) is an organization whose mission is to provide awareness, support, resources and a platform for Black female entrepreneurs.⊲ blackfemalefounders.org

“Ten years ago, we founded EVERFI in a small DC row house with the idea that we could harness innovative, digital education to engage learners around some of the country’s most intractable issues. We have executed on this vision, built a successful business, and helped millions of learners. Washington, DC has been the perfect home for this incredible journey, both now and into the future.”

—Tom Davidson, Founder & CEO, EVERFI


12

MEETUPS

Depending on what your interests in the technology field may be, there is likely a local meetup group for you! Check out a sampling of the various meetup groups in the DC tech community that can be found at meetup.com:

Action Design MeetupBig Data DCBlack Code CollectiveBlack TechnologistCode for DCData Community DCData Visualization DCDC Area Drupal MeetupDC Cyber Security ProfessionalsDC Enterprise Tech MeetupDC Hack & TellDC Lean Startup CircleDC Media InnovationsDC Metro FinTechDC NightowlsDC PyLadiesDC Ruby Users Group

DC TechBreakfastDC Tech MeetupDC Web API User GroupDC Women in AgileDesign Thinking DCGirl Develop It DCHacDCIP Roundtable for StartupsLean Startup AcademyLesbians Who Tech DCModevDCRails Girls DCSocial Entrepreneurs and Changemakers Startup Grind DCWomen Who Code DCWordPress DC

LOCAL DC TECH NEWS OUTLETS

DC innodcinno.streetwise.co

Technical.ly DCtechnical.ly/dc

Tech.Cotech.co/city/dc

Facebook Groups to join for local DC Tech news: DC Tech Facebook Group (~5,000 members)DMV Startup (~1,500 members)


FiND OUT MOREThe Washington DC Economic Partnership (WDCEP) is a nonprofit, public-private organization that actively positions, promotes, and supports economic development and business opportunities in Washington, DC.

WDCEP is your first stop when doing business in the District.

Address 1495 F Street, NW Washington, DC 20004

(202) 661-8670

Host your event in our space Our ideal location at the corner of 15th & F Streets, NW, near the White House, provides ample event space for meetings, hiring events, menu tastings, workshops, board meetings, and more.

Learn more about renting out our conference room for an event.

Connect with us

wdcep.com

wdcep

wdcep

WDCEP

THE WHITE HOUSE

I STREET

H STREET

H STREET

K STREET

G STREET

F STREET

E STREET

14TH

STR

EET

15TH

STR

EET

15TH

STR

EET

17TH

STR

EET

16TH

STR

EET

13TH

STR

EET

12TH

STR

EET

11TH

STR

EET

Farragut North

Farragut West McPherson Square

Metro Center

wdcep

wdcep1495

washington-dc-economic-partnership

Small Business DEPARTMENT OF CONSUMER AND REGULATORY AFFA IRS '

The Department of Consumer and Regulatory Affairs’ (DCRA) Small

Business Resource Center (SBRC) is your premier one-stop-shop

for information and services that can help you open, sustain and

strengthen your business.

RESOURCE CENTER

Conveniently located in DCRA’s Permitting and Licensing Center,

SBRC offers access to free trainings, technical workshops,

educational seminars, one-on-one sessions, and more.

If you are an aspiring entrepreneur or current small business owner,

SBRC is an essential resource for your success! Learn more at

dcra.dc.gov/sbrc.

Start Here !

With the District expanding, residents have access to an innovative

city full of opportunities for both new and established business

enterprises.

Documents

A Resource Guide for Creating or Launching a Small Business€¦ · with more than 80 coworking spaces, accelerators, and incubators spread throughout the city. DC’s mix of top