The Relationship Between Government and Innovation in Washington DC
The technology landscape in the Washington DC and Northern Virginia region is shaped by the federal government. The federal government is the largest purchaser of technology goods and services, probably on the whole planet. The feds are also helping drive what may be the fastest-growing subcategory of technology company….startups. Washington DC is rapidly evolving into a hub of startup activity. Although the region is a long way from being Silicon Valley, industry insiders say the area is on its way to becoming a technology hub. Cushman & Wakefield ranks ours as the third-best metropolitan area for tech, behind only San Francisco and Silicon Valley. When Crystal City landed Amazon’s HQ2, that position was solidified.
“It’s everywhere. It’s along 6th Street, 7th Street, close to the Convention Center; it’s in Shaw,” said Brian Kenner, D.C.’s Deputy Mayor for Planning and Economic Development, speaking about tech. “It’s located increasingly in areas that you may not think it’s located in.”
The government is constantly looking towards the private sector to solve problems, and now they are opening even more doors to make it more efficient to do so with increased funding through business partnerships to create technology incubation programs. An emphasis on “innovation” and “agile services,” among other types of consumption models made possible by the app revolution and cloud,, is transforming the government procurement to let small, creative tech companies in. There are changes happening government wide to reduce the time it takes to compete and award contracts and to chunk large federal tech projects into modules, potentially attracting businesses previously deterred by the lengthy procurement process.
Three Technology Incubators in Washington DC
Previously, businesses that considered doing work with the government followed the path of procurement and GSA schedules. I take a closer look at the less common, but rapidly growing path of technologists working with the government through alternate methods. The government is constantly looking towards the private sector to solve problems, and now they are opening even more doors to make it more efficient to do so with increased funding through business partnerships to create technology incubation programs.
DCode42 is an accelerator program for technology programs looking to enter the federal government market. DCode42 works with companies in a variety of industries such as big data, cyber security, and health IT that have the power to change the way the government runs. A stage-agnostic technology accelerator, DCode42 helps emerging technologies break down barriers and go-to-market quickly in the federal government.
With access to both industry and government, Dcode’s networking program helps companies connect directly with hundreds of agencies and potential corporate partners. They also help startup companies gain quick name recognition through press and events. Currently, the program has accelerated over 50 companies, connecting those companies to over 80 federal agencies and programs, and has achieved over 55M in contracts wins. A look at the current program list reveals a current focus on Information Security and Space Technolgy.
Fed Tech pairs entrepreneurs with inventions from over 17 federal labs to commercialize federally funded research and development projects. The Fed Tech program helps teams validate demands for the technology and build a basic business model within two months. They partner with top federal, universities and commercial entities to unleash the innovation capabilities of startups focused on government business. Areas is specialty include transforming technology transfer offices to more effectively reach their customers and users and optimize their IP portfolios, and teaching the latest lean startup methods to employees to improve their performance.
Govtech Fund assists startups to build software tools for government employees that significantly improve how they deliver a wide array of government services including foster care, law enforcement, parking management, municipal bond issuance, procurement, food safety, and education administration, to name just a few. They harness the power of transformers, technology, and capital to modernize the operations of government to repair society’s connective tissue.
To support their double-digit monthly growth, the Govtech Fund portfolio companies have raised hundreds of millions in capital from leading venture capitalists such as First Round Capital, Lowercase Capital, General Catalyst, Bezos Expeditions, Andreessen Horowitz, Cowboy Ventures, Initialized Capital, Khosla Ventures, Jim Breyer and many more.
The next blog on this topic will cover the role of R&D funding in the development of the Washington DC startup culture.