Why Tech Companies Should Be In Washington DC

[Justin Thorp]

Scoble recently wrote a post about how he's been talking with CEOs of tech companies that have moved to San Fran.
http://scobleizer.com/2007/10/17/why-companies-move-to-san-francisco/

He cited the following reasons as being used most frequently.
1. Access to talent.
2. Access to marketing/PR.
3. Access to money.
4. Atmosphere (more geeks per square foot here than anywhere else in the world, they tell me).
5. Weather.

So... we want DC to be the place to be. Why should a company come here? It'd be cool to have our list of reasons.

[Justin Thorp]

I know we have a few CEOs on this network. Maybe they can pipe up and talk about why they're in DC and not San Fran.

[Peter Corbett]

#1 on this list is probably: Access to Government and their influencers (associations, unions, lobbying firms)

and the main reason I'm here i think and not CA/NYC:
-The lifestyle is well balanced. NYC is too harsh, CA is too casual. DC is in between i think - and DC 'cares' about others/the world....not just about making money.

[Jared Goralnick]

Our comments overlapped. But I'd agree about the culture--DC is a really nice in-between when it comes to NYC vs. SF. That being said, I wouldn't mind a little more casual sometimes. But it's really easy to feel like you're part of something bigger here in DC, and to feel like an important member of it all when the city is so small.

[Jared Goralnick]

Some notes on his list first

* We have access to talent, you just may have to look in different places
* We have access to marketing/PR
* We have an incredible atmosphere here. We have geeks AND save-the-world people and so many different scenes. We can easily hold our own on the culture and life here.
* We don't have the same level of access to money
* They've beat us on the weather...

Some other reasons
* The Government is here
* Changing the world? There are more not-for-profits and places to influence the US and global scene here than anywhere
* A chance to be a big fish in a small pond (instead of just another startup)
* The technology community is strong, welcoming, and receptive. And you can make a name here much more easily than in SF (see last point)
* The business community is REALLY vibrant
* So many different communities within 40 minutes (DC, Balt, Annapolis, Old Town Alexandria, Arlington for work and play, and then so many business hubs in places like Fairfax, Reston, Dulles, and 270)
* NYC, Philly, Boston--where most of those startup founders are probably from---are within a 90 minute inexpensive plane ride in the same timezone

And one more point, I think if I were in technology SERVICE, this would be one of if not the best places in the country to locate. But I recognize that most of these sorts of conversations are about PRODUCT companies. But both call for really smart geeks, and if you want to start up a service company, I think there are as many options and plenty of talent here to make an impact.

[Ann Bernard]

The main reason I'm still here is because our "target market" is here...otherwise I probably would have moved by now. It has been a big challenge...what I'm I talking about; IT IS a big challenge to be a start-up here in DC.

I frankly love the atmosphere and attitude of Cali and miss it very much. I think that here in DC not as many people are risk takers. We have some real innovative and talented people who are afraid to take the leap. It's slowly changing has more and more take the leap and prove that it can be done.

Support, support and support...that's what is most needed. It's starting to happen (Thank you Justin, you've been a big part of that). The more we come together the better it will be for all us. We need to work on pulling in the support of investors and the press. Seems like the Washington Post is really starting to get involved. All and all the conditions will get better, the more new start-up that get launch from here.

[Jason Wishard]

That leap is much harder to take here. I think the support network sucks in DC. I hear so many entrepreneurs and VC folks saying "the network is here", but I don't see it. I for one am in the midst of doing my own start-up, and I finally gave up on "help" and have just decided to bootstrap the thing with a few colleagues and jump in head first. I think the community in DC wants people to jump in, but they don't want you to be in "the club" unless you have succeeded or tried to succeed.

I don't want cheerleaders, I want coaches. The hard part is meeting those coaches. I think that Social Matchbox is a start, as well as online communities like Mr. Thorp have set up. What we need are more events for aspiring minds (DC Start-Up weekend was a great idea) and they need to be more publicized.

[Jared Goralnick]

Jason,

While you can read my writing all over the web taking different sides on this, I think you should take a look around a little more of the scene since there is a bit more of it then you may have experienced. TECH Cocktail, Refresh DC, NetSquared, Social Media Club on the tech side, the BOT's Small Business Academy, the Venture fairs, the business plan competitions, the SBDCs, the chambers of commerce, the GBTC, NoVA Tech Council, etc etc there's so much around here. I go out most nights of the week and haven't met you yet--come introduce yourself to myself or Justin or many of the others who are looking to help get people involved and build a network. It may not be perfect here, but this community is not unique in that a little upfront investment in the community will reap a lot of rewards.

Our support network doesn't suck. It's a great community here and we'd enjoy seeing you out and about.

[Jason Wishard]

Hey Jared,

Thanks for your reply. TECH Cocktail I missed this time around as I had a prior commitment, but I have been going to Refresh DC for some time and while I don't always go to the happy hours, I do go when I can to mingle afterwards. I've been to Social Matchbox and do go to some of the MeetUp.com's in the area.

I am very interested in some of the business stuff you listed. Some I have heard of, but there are a couple that highly interest me that you listed. I have Googled and asked around about events like these but I have never heard of the first few you listed.

I have met Justin T., Peter C., Jason G. and many more, but it seems when I go out to the events the next month around, it's like I start all over again. I'll admit, I'm not an avid blogger (need a weekend to redesign the blog and have something content rich to visit), but I do my best to stay active in the community. I don't go out every night (a start-up I'm working on consumes most nights). Maybe it's the stickiness for me. I remember folks from month to month, but it doesn't seem the other way around.

I wasn't trying to say the people suck. Everyone seems nice and willing to chat up a storm, but there seems to be a sense of disconnectedness.

I will keep an eye out for you next time and make a point to introduce myself. Maybe I'm just mingling with the wrong people.

Thanks,
J

[Greg Gershman]

We do good on #'s 1 and 2. Horrible on #'s 3 and 5, and so-so on #4.

Also, if you're starting a web company and you want to be acquired, you've got a much better shot at doing so if you're in CA.

[Justin Thorp]

Greg, how can we fix that?

[Ann Bernard]

We have to keep doing what we are doing. The more we show that we have a start-up community and that great ideas and businesses are being created right here in DC the more involved the press and investors will get. It's about sharing information, coming together and helping each other out. I know I sound like a broken record but that's what the Valley has...an atmosphere that supports start-ups.

It's about exchanging ideas, resources, and contacts. Opening doors for each other. I don't think that's necessarily the type of attitude that exist in the DC, MD and VA area. I don't mean just within the tech community or with the entrepreneurs but generally speaking.

[Greg Gershman]

Good question; VCs tend to fund what they know they can sell, which is usually based on geography and/or connections. The fact that consumer internet startups are attractive mostly to bigger West coast companies means that there's probably fewer local VCs that are willing to risk investing in something that they don't have good connections in helping make a successful exit.

So, if we can't count on local VC's, we need to raise the profile of what's going on to outsiders, and create opportunities for locals to connect with funding sources that aren't as local and limited in their interest by their local nature. Note that one of the only significant fundings by a local VC to a local company is Clearspring, which has a distinctly non-consumer focus.

Note: I don't think we need to go all the way to CA; NY, Boston, Texas are all sources of investment that might have an interest in DC if enough noise is made.

What do you think? I'm basing this on my experiences of raising money (or, more correctly, *not* raising money).

In terms of the weather, there really isn't anything we can do about that. Unless there's some super-secret Pentagon project that I'm unaware of...