A Resource Guide for Creating or Launching a Small ENTREPRENEUR TOOLKIT: TECH

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 TOOLKIT The DC Advantage Regulations Finding & Developing Talent Financial Incentives & Resources DC Accelerators, Incubators & Flexible Office Space Get 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.

September 2018 ii WELCOME

Welcome to Washington, DC—the capital of inclusive . 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 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 into a reality?

WDCEP is Here to Help! Looking to start or grow your tech We created this Entrepreneur Toolkit business in DC? The Washington specifically for the DC tech industry to DC Economic Partnership (WDCEP) supplement our more comprehensive can help. Whether you’re a new and detailed DC Doing Business startup or an established company Guide, which you can download looking to relocate or expand, at wdcep.com. We have done all WDCEP provides resources, the preliminary research for you so introductions, and promotion to help that you can focus on bringing your your business thrive in the District. business to life.

WASHINGTON DC ECONOMIC PARTNERSHIP 1 ENTREPRENEUR TOOLKIT: TECH

THE DC ADVANTAGE

People 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 .

Talented & Inclusive Workforce including over 180 embassies and foreign councils. DC is also home DC’s tech community is diverse, to the most iconic financial tenants inclusive, and active. Multiple in the world: the World Bank, the community and networking events International Monetary Fund, and the happen every day. Being the nation’s Inter-American Development Bank. capital, DC attracts diverse creative With so many different nationalities talent that provides a rich ecosystem flowing in and out of these institutions, for new enterprises and new every language and ethnicity can be opportunities in the city. found in Washington, DC, making it an international gateway. Supportive Tech Community Access to Available Investment, DC is home to the federal government, Business Opportunities & 16 universities, and many government and private-sector research institutions, Capital Resources making the District a global hub for Washington, DC entrepreneurs innovation in technology, policy, have access to a variety of funding and finance among many other sources from local and federal disciplines. Governors, mayors, heads government grants to . of state, university presidents, CEOs The Washington, DC region has an of energy companies, utilities, and abundance of wealth and is home hospital groups—all of these people to seven of the top ten wealthiest come through Washington making counties in the nation. With a growing DC a prime location for technology community, access to companies in regulated industries. accelerators, and proximity to federal and local government funding sources, International Visibility DC is an ideal location for startups to do business. The world recognizes DC as an international and national magnet for domestic and foreign affairs

2 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) “As an entrepreneur, I’m privileged to • #3 Best Tech City in the U.S. work in a community where the creative juices are always flowing and you have (Cushman & Wakefield, 2017) the support you need at your fingertips. • #4 Most Innovative State in America DC boasts enthusiastic private and public (WalletHub, 2018) capital partners—all of which have been critical for my growing fintech company. • Best Startup Hub in the U.S. The unique access to policymakers and (2017 Kauffman Growth Entrepreneurship Index) thought leaders is only possible in our nation’s capital; and this, coupled with • Top 10 Global City the diverse and vibrant local culture, for Female Entrepreneurs make DC a great place to work and live.” (The Dell We Cities Index, 2016) —Marla Blow, CEO, FS Card

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

WASHINGTON DC ECONOMIC PARTNERSHIP 3 ENTREPRENEUR TOOLKIT: TECH

DO IT RIGHT ⊲ REGULATIONS

Making Your Business Legal

➊ Complete Business Registration— ➏ Apply for a Certificate of DC Department of Consumer and Occupancy (bit.ly/CofO) Regulatory Affairs (business.dc.gov) ➐ Food service business applicants ➋ Apply for Employer Identification are required to submit a final Number (bit.ly/EIN-IRS) DOH inspection report. ➌ Register with the DC Office of Tax (bit.ly/DOHinspection2) and Revenue and complete the ➑ Apply for Basic Business FR-500 to receive your DC License and/ or other applicable Business Tax Identification Number licenses, according to your (mytax.dc.gov) business activities. (dcra.dc.gov/ ➍ Receive Certificate of Registration node/539512 and business.dc.gov) from the Office of Tax and Revenue ➒ Register your Business Trade Name ➎ Complete the Clean (dcra.dc.gov) hands Certificate affidavit (ocfocleanhands.dc.gov/cch)

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

4 FINDING & DEVELOPING TALENT

Locating 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 JOBS Tech.Co AngelList DC Tech Jobs jobs.tech.co angel.co Facebook Group bit.ly/dctechjobs Technical.ly Upwork™ Freelancers technical.ly/dc/jobs upwork.com DC Digital Jobs Facebook Group Hired hired.com

LOCAL JOB BOARDS FOR TECHNOLOGY JOBS Find 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 IP, PT Certification in Excel, CompTIA A+ Certification Code for Progress Back-End, Front-End IP, FT Data Society Data Analyst, Network Analyst, Text Mining Analyst: Coming On, FT, PT Soon 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) On, Off w/ Node.js, npm, and a text editor Thinkful Stack Developing, Data Science, Front End Developing, Back On, IP, FT, PT End Developing, Mobile Developing, Design 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 WASHINGTON DC ECONOMIC PARTNERSHIP 5 ENTREPRENEUR TOOLKIT: TECH

FINANCIAL INCENTIVES

The 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 succeed in DC.

QUALIFIED HIGH TECH COMPANY (QHTC) INCENTIVES Washington, DC offers one of the most • New hire wage tax credit: up to attractive incentive packages for high- $15,000 annually (for 24 months) for tech businesses in the country. The DC each qualifying employee Tech Incentives provide certain credits, • New hire retraining tax credit: up to exemptions, and other benefits for a $20,000 per qualifying employee Qualified High Technology Company • 10-year tax exemption from the date (QHTC). A QHTC can leverage the of acquisition on personal property program to develop their workforce, used for operating your business secure affordable facilities for their business and benefit from reduced real Move to DC estate, personal property, sales, and • Relocation tax credit: up to $7,500 for income taxes. To qualify for incentives, each employee businesses must be located in the • 5-year freeze on real property taxes District, employ at least two individuals, for office improvements and derive a majority of revenue from qualifying high technology activities. Thrive in DC • Lifetime reduction of corporate Grow in DC franchise tax from 8.25% to 6% • 0% corporate franchise tax for first 5 • Sales tax exemption on purchase of years of business in DC hardware, software and equipment, • Capital gains tax only 3% for and on qualifying sales qualifying investments in QHTCs • Increased business expense (effective January 2019) 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] incentives.dc.gov | dmped.dc.gov/page/qualified-high-tech-companies-qhtc

6 GOVERNMENT FINANCIAL RESOURCES

DC BizCAP - Innovation Great Streets Small Business Grants Finance Program Great Streets Small Business Grants are The DC BizCAP - Innovation Finance Program competitive grants for qualified small business (IFP) is a program administered by the DC owners who wish to improve their place of Department of , Securities, and business. Banking (DISB) that provides capital to investors BENEFIT: Up to $50,000 that co-invest in DC startups and emerging companies that seek financing alternatives to MORE INFO: Office of the Deputy Mayor for traditional commercial financing. Planning and Economic Development (DMPED) BENEFIT: The IFP provides the capital either ⊲ (202) 741-8905 • greatstreets.dc.gov (1) through a co-investment with an Innovation Finance Company into the small business; or (2) Small Business Innovation Research by investing as a limited partner in an Innovation (SBIR) & Small Business Technology Finance Company that shall then make an Transfer (STTR) Grant Program investment into that small business. (Maximum of The federal SBIR and STTR programs are an 50% of investment up to $500,000) important source of seed and early-stage capital MORE INFO: Department of Insurance, for technology startups throughout the U.S. Each Securities, and Banking (DISB) year, SBIR and STTR are the source of more than $2 billion in proof-of-concept and very early- (202) 727-8000 • [email protected] • stage funding for qualified small businesses. ⊲ disb.dc.gov ⊲ sbir.gov

VENTURE CAPITAL AND OTHER FUNDING SOURCES Access to capital is a top priority for most emerging technology companies. Funding sources from angel investment to 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 Forum NextGen Venture Partners A group of more than 30 active angel investors A DC-based network-driven venture firm made located throughout the Mid-Atlantic region. The up of startup investors that are leaders in the DC Angel Venture Forum process makes it easier startup community who use their collective skills for companies to meet the highest number of and connections to support the growth of their angel investors in one place over the shortest portfolio companies. period of time. ⊲ nextgenvp.com ⊲ angelventureforum.com DC Community Ventures Mid-Atlantic Venture Association DC Community Ventures is a community An association of private capital investors in development venture capital fund that seeks to high-growth enterprises in the Mid-Atlantic region. invest in companies that deliver above-average MAVA’s TechBUZZ event is one of the area’s financial returns as well as social impact for the premier pitch events for early-stage entrepreneurs. communities in which they operate. ⊲ mava.org ⊲ dccommunityventures.com

WASHINGTON DC ECONOMIC PARTNERSHIP 7 ENTREPRENEUR TOOLKIT: TECH

DC ACCELERATORS, INCUBATORS & FLEXIBLE OFFICE SPACE

With 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.

1776 mentoring, leadership coaching, and a stipend 1776 is a public benefit corporation that funds during the residency phase. and supports high-growth startups focused on ⊲ halcyonhouse.org solving society’s most fundamental challenges in sectors like education, energy, transportation, Inclusive Innovation Incubator (In3) DC’s first community space focused on and financial services. 1776 supports startups inclusion, innovation, and incubation. In3 through its innovation curriculum, mentorship, provides a collaborative environment where investment, and programming. under-resourced members have access to the ⊲ 1776.vc space and services needed to build or grow a DCode successful business, including workshops and DCode is an accelerator program for technology trainings, mentoring, office and desk space, and companies looking to enter the federal networking events. government market. DCode provides access to ⊲ in3dc.com a network of potential partners and customers, mentorship, hands-on strategic planning, and The HIVE 2.0 The only small located east one-on-one sessions with government experts. of the Anacostia River, The HIVE 2.0 provides ⊲ dcode.co coworking space and support for small business, Halcyon Incubator nonprofits, and creative professionals from all The Halcyon Incubator is an 18-month, 3-phase industries. The HIVE 2.0 offers flexible office fellowship that offers extensive benefits to social space, business support, technical assistance entrepreneurs—5 months of rent-free housing, and networking events. 12 months of rent-free workspace, business ⊲ thedchive.com

8 SEED SPOT Village Capital SEED SPOT is an accelerator focused on Village Capital uses the power of peer support supporting social entrepreneurs creating a to change the traditional dynamics between product, service, or technology that improves investors and entrepreneurs. They recruit lives or makes the world a better place. SEED entrepreneurs solving specific problems in SPOT provides full-time and part-time programs agriculture, energy, education, financial inclusion, that provide entrepreneurs access to resources, and health, and then award pre-committed seed mentors, business fundamentals, community funding to the two ventures ranked highest by partners, and capital resources. their peers at the end of every program. ⊲ seedspot.org ⊲ 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.

AdvantEdge Alley Breather NW Canvas Carr Workplaces NE Cove DC Workspaces Flex Office Space MakeOffices Metro Offices OpenGovHub SW PunchRock SE Regus Swingspace The HIVE 2.0 WeWork & WeWork Labs

WASHINGTON DC ECONOMIC PARTNERSHIP 9 ENTREPRENEUR TOOLKIT: TECH

ADDITIONAL RESOURCES

Founder Institute Vinetta Project The Founder Institute is an idea-stage The Vinetta Project DC provides high accelerator and startup launch program potential female founders with access to that provides early-stage and aspiring proprietary resources, exclusive networks entrepreneurs with the structure, training, and capital from vetted investors. mentor support, and global network ⊲ vinettaproject.com needed to start an enduring company. ⊲ fi.co BEACON Entrepreneurship Initiative for Women Project 500™ BEACON is a community-led campaign Project 500 is a free business that works with businesses, investors, development program to help diverse government officials and mentor businesses scale in terms of revenue, staff programs to bring more resources and and investment retained. Their goal is to opportunities to women entrepreneurs in recruit and retain up to 500 businesses the District. to receive hands on training, capacity ⊲ thebeacondc.com building, mentoring and networking to advance the economic success of their SCORE Mentoring Program businesses and their communities. SCORE is a nonprofit association, ⊲ project500.org 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 Network The Small Business Development Center “In DC we (Open Data Nation) find (DC SBDC) Network provides high quality people to join our team who are one-on-one consulting, training and technically sophisticated data scientists information resources to empower new and technologists and also amazing and existing businesses. people with the passion, ambition, and ⊲ dcsbdc.org drive to make the world a better place.”

—Carey Ann Nadeau Founder & CEO, Open Data Nation

10 GET PLUGGED IN

The 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 Startup Black Female Founders DMV Startup runs a Facebook group and Black Female Founders (#BFF) is an Squarespace wiki that helps connect organization whose mission is to provide entrepreneurs in the broader DC area. awareness, support, resources and a ⊲ dmvstartup.org platform for Black female entrepreneurs. ⊲ blackfemalefounders.org Fosterly A community of entrepreneurs, creators, creatives, and collaborators, all working together to tackle new challenges in business and technology. ⊲ fosterly.com

DCFemTech A collective of 25+ DC/metro women-in- tech orgs who collaborate and streamline events. DCFemTech does Code & Coffee social events. “Ten years ago, we founded EVERFI in a ⊲ dcfemtech.com small DC row house with the idea that we could harness innovative, digital DC Web Women education to engage learners around A professional organization of over 3,000 some of the country’s most intractable members committed to the support issues. We have executed on this vision, and advocacy of women and girls in built a successful business, and helped technology by providing a community millions of learners. Washington, DC has in which they can develop, nurture, and been the perfect home for this incredible promote their leadership, technical and journey, both now and into the future.” professional skills. ⊲ dcwebwomen.org —Tom Davidson, Founder & CEO, EVERFI

WASHINGTON DC ECONOMIC PARTNERSHIP 11 ENTREPRENEUR TOOLKIT: TECH

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 Meetup DC TechBreakfast Big Data DC DC Tech Meetup Black Code Collective DC Web API User Group Black Technologist DC Women in Agile Code for DC Design Thinking DC Data Community DC Girl Develop It DC Data Visualization DC HacDC DC Area Drupal Meetup IP Roundtable for Startups DC Cyber Security Professionals Lean Startup Academy DC Enterprise Tech Meetup Lesbians Who Tech DC DC Hack & Tell ModevDC DC Lean Startup Circle Rails Girls DC DC Media Innovations Social Entrepreneurs and Changemakers DC Metro FinTech Startup Grind DC DC Nightowls Women Who Code DC DC PyLadies WordPress DC DC Ruby Users Group

LOCAL DC TECH NEWS OUTLETS

DC Inno dcinno.streetwise.co Technical.ly DC technical.ly/dc Tech.Co tech.co/city/dc Facebook Groups to join for local DC Tech news: DC Tech Facebook Group (~5,000 members) DMV Startup (~1,500 members)

12 FIND OUT MORE

The 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.

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WASHINGTON DC ECONOMIC PARTNERSHIP 13 DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS'

SREmSOaUllR CBE uCsEiNnTEeRss

With the District expanding, residents have access to an innovative city full of opportunities for both new and established business enterprises.

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.

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. Start Here ! 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.