15-07-2025
A DC tech incubator worked in the past. It will work again.
This is a guest post by Matt Caywood, the CEO and cofounder of Actionfigure, a DC-based company developing intelligent transportation software and AI analytics to help people move around cities.
There is a mistaken perception that startups struggle to succeed in the District of Columbia. The premature closure of 1776 didn't help that reputation.
1776, the district's homegrown startup incubator, supported hundreds of startups from 2013 to 2017. It then shuttered largely because of overly aggressive real estate expansion and competition from heavily investor-subsidized WeWork — not because it failed to nurture quality startups.
When 1776 wrapped up, the companies it housed were still very young, and it was hard to tell how successful they would become. Fast forward to today, and it's clear 1776 was a highly successful incubator. For companies that sell to large business and government customers — the sweet spot for 1776 startups — it takes 10 years to grow an idea to significant scale. Over that timeframe, and with a small investment of $200,000 from the DC government, 1776 startups generated almost $1 billion in enterprise value.
That's a staggering return, on top of the hundreds of high-paying jobs these companies created. As an economic development win for DC, it's on par with Nationals Park.
This proves that the district is ripe for innovation and company growth. These companies are helping to fill DC office spaces today, and the next generation of startups will fill future DC office spaces.
The DC tech scene has a huge advantage in its close proximity and access to policymakers, experts and federal procurement. 1776 was wisely designed to exploit that advantage with its mission of growing tech startups in DC and focusing on life-critical sectors like education, health, transportation and energy.
1776 rapidly became the center for startups and emerging companies in the district, and many bright young innovators started their careers there. It offered classes, mentoring, after-hours events and meetups, and networking. Countless political figures, including President Barack Obama and Prime Minister Malcolm Turnbull of Australia, toured the space and met with startups. Perhaps more important, decision-makers like former GSA administrator Dan Tangherlini and Seattle DOT director Scott Kubly met one-on-one with early-stage ventures.
The company I cofounded, Actionfigure, was based at 1776. We solve transportation problems in cities by working with real estate owners and large employers to provide software that helps people travel more easily and sustainably. One of our first TransitScreen displays (showing real-time information about every transportation option) was installed in the lobby, creating great visibility for our product.
But what benefited us most was mentoring and exposure to larger startups further along their journey. One early conversation with 1776 cofounder Evan Burfield made a huge impact on me. He pointed to our revenue and customer growth rate and coached me on what that meant for the future of the company — and my role in it.
This helped me grow from a software hobbyist to a software CEO and changed the trajectory of the company. Now, Actionfigure is deploying mobile, screen and web applications to help move employees of some of the world's largest companies and attendees of global sports championships. Through all of this, we're using machine learning and generative AI to accelerate transportation planning processes.
Actionfigure wasn't the only 1776 success story. Morning Consult, a decision intelligence company-turned-tech unicorn valued at over $1 billion, began there and is now headquartered in downtown DC. Social Tables, an event planning startup, also shared the campus, opened a downtown headquarters, and then was acquired for over $100 million by Tysons-based Cvent. Then there's MPOWER Financing, which has raised over $350 million to deploy loans to international students.
The tech community 1776 created flourished up through the pandemic, and many of these companies are still in DC or the DMV. Unfortunately, the pandemic disrupted the meetups and in-person connectivity that startups require, and without a nucleus like 1776, the next wave of startups is struggling to form connections and find a home.
Fortunately, there have been important steps to rebuild a nurturing tech support system. The DC Tech & Venture Coalition, launched two years ago, attracts many of the region's leading startups and investors and runs a revitalized DC Tech Meetup. The District is home to DC Startup and Tech Week, which has its 10th anniversary this October.
But the city needs another incubator to provide what 1776 offered — community and mutual learning in a physical space — for innovators building in the heart of the world's most innovative democracy.
And the tech sector could be the answer to the city's dismal office occupancy rate. Small tech companies, including startups, attract a base of young employees who often live closer to the office and have fewer barriers to office attendance. Both these companies and their employees benefit from collaboration across a network of similar companies. That's how they learn about emerging technologies and connect with customers, vendors, partners and investors.
DC must support new and growing startups with a physical hub that provides 'critical mass' and incubator services, and Station DC is taking the initiative by opening in Union Market. But it will be critical for Station DC's backers, including the District, to support a high level of programming and business services to attract new entrepreneurs and experienced advisors, investors, and connectors. But companies need space to grow, and the District needs to consider how to support the core of DC between downtown and Dupont, which hosts most of the existing tech companies and available office space.
The world is grappling with big policy problems that need tech solutions, from transportation and education to artificial intelligence, climate change and public safety. If DC supports our innovative startups, no city is better positioned to solve them.
