By Aria Brent
AFRO Staff Writer
On Dec.16 Mayor Muriel Bowser announced the D.C. Venture Capital Program, a new $26 million fund created to bring equity investments to early-stage, D.C., based tech companies with a prioritization for underrepresented founders.
“Washington, D.C., is the best place in the nation to launch and grow a business. We know that sometimes talent alone isn’t enough to succeed and that is why the city has stepped in with a suite of innovative grants to help more entrepreneurs get their fair shot,” said Mayor Bowser in a statement. “The D.C. The Venture Capital Program is about investing in people, jobs and the future of DC’s tech economy.”
The D.C. Venture Capital Fund marks a significant investment in D.C.-based businesses by strategically leveraging public funds to attract private capital. For every dollar invested by the District, private investors are required to match or exceed that amount, effectively doubling the total funding for D.C. startups to a minimum of $52 million.
This initiative is supported by the State Small Business Credit Initiative (SSBCI), a federal program administered by the U.S. Treasury Department. Originally launched in 2010 and renewed through the American Rescue Plan Act (ARPA) in 2021, SSBCI aims to spur business growth in states and territories nationwide.
“K Street Capital could not be more excited to launch the new D.C. Venture Capital Fund in partnership with Mayor Bowser and DMPED,” said Paige Soya, managing partner at K Street Capital. “Capital is the most critical resource early-stage startups need, yet it is also the scarcest. This is a huge step forward for D.C. and it will have a far-reaching impact on the community.”
The Office of the Deputy Mayor for Planning and Economic Development (DMPED) has selected K Street Capital as the Program Administrator for the D.C. Venture Capital Fund. With extensive investment expertise and strong ties to the local community, K Street Capital will manage the deployment of SSBCI funds by partnering with local and regional venture capital firms. These firms will collaborate directly with local startups to secure funding deals ranging from $250,000 to $500,000. DMPED will oversee K Street Capital’s administration of the program to ensure its effectiveness and success.
In addition, Mayor Bowser has invested $4.2 million in 39 businesses through the District’s Inclusive Innovation Equity Impact Fund (IIEIF). This program is designed to level the playing field by providing access to critical resources for entrepreneurs who face barriers to early-stage funding. IIEIF supports startups and local business owners seeking to grow in D.C., by offering low-interest loans, revenue-based financing and equity investments. The fund prioritizes businesses in tech, consumer products and high-growth sectors. In October, Mayor Bowser announced the third round of IIEIF funding, awarding $1.8 million to 17 D.C. businesses.
Investors, fund managers and venture capital firms are encouraged to connect with K Street Capital and DMPED to learn more about this program. Additional details on the application process for SSBCI equity investments will be announced in the coming months.
The post Mayor Bowser premieres $26 million fund, encouraging new venture capital to D.C. based start-ups appeared first on AFRO American Newspapers.
