A Resource Guide for Creating or Launching a Small Business
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1 A Resource Guide for Creating or Launching a Small Business
2 ENTREPRENEUR TOOLKIT: TECHNOLOGY The technology sector plays a major role in diversifying Washington, DC s economy. The DC metropolitan area ranks second in having the largest number of tech companies in the U.S. and is the third largest employment center for tech employees in the US, above Los Angeles and Boston. 1 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 in to the DC Tech Community 1. Transwestern, Impact of the Technology Sector to Washington/Baltimore Market (9/2015) September 2017
3 WELCOME Welcome to Washington, DC the capital of inclusive innovation. DC is home to the one of the world s most talented, innovative, and diverse tech ecosystems. DC is not only home to several large successful tech companies like Blackboard, CoStar, and Vox Media, but it also features a thriving startup ecosystem with more than 70 co-working 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 ve done all the preliminary research for you so that you can focus on bringing your business to life.
4 ENTREPRENEUR TOOLKIT: TECHNOLOGY THE DC ADVANTAGE People are often attracted to Washington, DC for its politics and power, but increasingly more are discovering that the city is an thriving technology and entrepreneurship center. Talented & Inclusive Workforce DC s tech community is diverse and inclusive and is constantly active. Multiple community and networking events happen every single 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 several hundred government and private-sector research institutions, making the District a global hub for innovation in technology, policy, finance and 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 on a regular basis making DC a prime location for technology companies in regulated industries. 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 financing. 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. International Visibility The world recognizes DC as an international and national magnet for domestic and foreign affairs, with over 180 embassies and foreign councils located in the city. DC is also home to some of 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.
5 Washington, DC is A Top 10 best place for brand-new tech companies to find success (US News) #1 metro area for entrepreneurship based on startup formation, high-growth companies and the number of startups that reach scale in 10 years (Kauffman Foundation, 2015, 2016) #1 city for women in tech (Fast Company) In fact, women fill more than 40% of tech jobs in DC (Forbes) A Top 5 city for black-owned businesses (NerdWallet) and a top 10 global city for female entrepreneurs (Dell Women Entrepreneurship Cities Index) #3 best city in America to start a business, based on over 20 categories including tax and regulatory climate, workforce strength, access to capital, and the cost of living (CNBC) Dell & Intel s #3 most future-ready city in America (Dell) Top 10 metro area in the world with the highest levels of venture capital investment per capita (Martin Prosperity Institute, Rise of the Global Startup City) 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, 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 70 co-working 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 & part-time computer programming schools
6 ENTREPRENEUR TOOLKIT: TECHNOLOGY DO IT RIGHT REGULATIONS Making Your Business Legal (See Chapter 2 of the DC Doing Business Guide for more information) ➊ ➋ ➌ ➍ ➎ Complete Business Registration DC Department of Consumer and Regulatory Affairs business.dc.gov Apply for Employer Identification Number bit.ly/ein-irs 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 Receive Certificate of Registration from the Office of Tax and Revenue Complete the Clean Hands Certificate affidavit ocfocleanhands.dc.gov/cch ➏ ➐ ➑ ➒ Apply for a Certificate of Occupancy bit.ly/cofo Food service business applicants are required to submit a final DOH inspection report bit.ly/dohinspection Apply for Basic Business License and/or other applicable licenses, according to your business activities dcra.dc.gov/node/ and business. dc.gov 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 Startup Checklist bit.ly/bizchecklistsbdc
7 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 jobs.tech.co Technical.ly technical.ly/dc/jobs Hired hired.com AngelList angel.co Upwork Freelancers upwork.com DC Tech Jobs Facebook Group bit.ly/dctechjobs DC Digital Jobs Facebook Group bit.ly/dcdigitaljobs 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 8-12 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 General Assembly Coding, Design, Data, Marketing, Business On, IP, FP, PT Hear Me Code Beginners Coding: 3 Lessons IP, PT NodeSchoolDC Thinkful Open Source Workshops, Self Guided (Workshoppers) w/ Node.js, npm, and a text editor Stack Developing, Data Science, Front End Developing, Back End Developing, Mobile Developing, Design On, Off 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
8 ENTREPRENEUR TOOLKIT: TECHNOLOGY FINANCIAL INCENTIVES & RESOURCES 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 that can 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. Learn about DC s wide variety of financial incentives and resources specific to your technology business at DMPED s new online portal at incentives.dc.gov. THRIVE IN DC 0% corporate income tax rate for five years and a reduction in the corporate income tax rate from 9.975% to 6% for the life of a company Exemption from sales tax on purchase of hardware and software GROW IN DC Wage reimbursements of up to $10,000 for each new hire or up to $30,000 for newly hired veterans Ten-year exemption of qualified personal property taxes Training tax credits of up to $20,000 for newly hired veterans up to $10,000 may be refunded Exemption from sales tax charged for retail sales and service provided by qualified company MOVE TO DC Relocation reimbursements of up to $5,000 for each employee relocated to the District or $7,500 if the employee also relocates his or her principal residence to the District Five-year freeze on assessed value of real property (no increase in real property tax) MORE INFO Office of the Deputy Mayor for Planning and Economic Development (DMPED) (202) dmped.eom@dc.gov
9 GOVERNMENT FINANCIAL RESOURCES DC BizCAP - Innovation Finance Program The 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 coinvest 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) disb@dc.gov Great Streets Small Business Grants Great Streets Small Business Grants are competitive grants for qualified small business owners who wish to improve their place of business. BENEFIT: In 2016, Small Business Capital Improvement Grants were awarded up to $50,000. MORE INFO: Office of the Deputy Mayor for Planning & Economic Development (DMPED) (202) greatstreets.dc.gov Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR) Grant Program The federal SBIR and STTR programs are an important source of seed and early-stage capital for technology startups through the US. 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 INVESTMENT Access 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 Forum A 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 Association An 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 Partners A 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 Ventures DC 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.co MORE INFO For information on traditional bank loans, community lenders, and crowdfunding, see Chapter 3 in the DC Doing Business Guide.
10 ENTREPRENEUR TOOLKIT: TECHNOLOGY 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 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 supports startups through its innovation curriculum, mentorship, investment, and programming vc DCode42 DCode42 is an accelerator program for technology companies looking to enter the federal government market. DCode42 provides access to a network of potential partners and customers, mentorship, hands-on strategic planning, one-onone sessions with government experts. dcode42.com GP Tech Labs An accelerator by Gardner Prescott Technology Ventures that provides a year-long program that invests and provides free workspace in tech and e-commerce startups in exchange for discounts on future investment rounds. gptechlabs.com Halcyon Incubator The 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 2.0 The 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
11 SEED SPOT SEED 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 Capital Village 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 70 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 Breather Canvas Carr Workplaces Cove DC Workspaces Flex Office Space Impact Hub DC MakeOffices Metro Offices OpenGovHub PunchRock Regus Swingspace The Hive 2.0 WeWork NW SW NE SE For a full inventory of flexible office spaces in Washington, DC, check out WDCEP s interactive map of Coworking Spaces in DC:
12 ENTREPRENEUR TOOLKIT: TECHNOLOGY ADDITIONAL RESOURCES Founder Institute The 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 Project The 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 Women BEACON 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 Program SCORE 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 Network The Small Business Development Center (DCSBDC) Network provides high quality one-onone consulting, training and information resources to empower new and existing businesses. dcsbdc.org SkillSmart loves doing business in D.C. because its where industry, policy, and the workforce all intersect. Jason Green, SkillSmart
13 GET PLUGGED INTO THE DC TECH COMMUNITY 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 or currently experiencing 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. Washington, DC is an incredibly collaborative town where the tech community supports each other to build highly successful and sustainable businesses. Alex Wirth, Quorum LOCAL NETWORKING GROUPS DMV Startup DMV Startup runs a Facebook group and Squarespace wiki that help connects 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 DCFemTech A collective of 25+ DC/metro women-in-tech orgs who collaborate and streamline events. DCFemTech does Code & Coffee social events. dcfemtech.com DC Web Women A 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 Founders Black Female Founders (#BFF) is an organization whose mission is to provide awareness, support, resources and a platform for Black female entrepreneurs. blackfemalefounders.org
14 ENTREPRENEUR TOOLKIT: TECHNOLOGY MEETUPS Depending on 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 Action Design Meetup Big Data DC Black Code Collective Black Technologists Code for DC Data Community DC Data Visualization DC DC Area Drupal Meetup DC Cyber Security Professionals DC Enterprise Tech Meetup DC Hack & Tell DC Lean Startup Circle DC Media Innovations DC Metro FinTech DC Nightowls DC PyLadies DC Ruby Users Group DC TechBreakfast DC Tech Meetup DC Web API User Group DC Women in Agile Design Thinking DC Girl Develop It DC HacDC IP Roundtable for Startups Lean Startup Academy Lesbians Who Tech DC ModevDC Rails Girls DC Social Entrepreneurs and Changemakers Startup Grind DC Women Who Code DC WordPress DC FOLLOW #DCTECH ON TWITTER TO STAY ON TOP OF EVENTS, NEWS, AND PEOPLE TO KNOW. LOCAL DC TECH NEWS OUTLETS 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. 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) Carey Ann Nadeau, Open Data Nation
15 FIND OUT MORE The Washington DC Economic Partnership (WDCEP) is a non-profit, public-private organization whose core purpose is to actively position, promote, and support economic development and business opportunities in Washington, DC. WDCEP should be your first contact when doing business in the District. Address 1495 F Street NW, Washington, DC (202) 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. 17TH ST Farragut North Farragut West CONN AVE 16TH ST I ST H ST THE WHITE HOUSE 15TH ST WDCEP 15TH ST McPherson Square Old Ebbitt Grill W Hotel K ST PENN AVE 14TH ST The Hamilton Willard Hotel 13TH ST NEW YORK AVE Shops at Natl. Place Metro Center H ST 12TH ST G ST F ST Warner Theater E ST Connect with us wdcep.com twitter.com/wdcep youtube.com/user/wdcep1495 linkedin.com/company/washington-dceconomic-partnership
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