Building a startup is hard. As someone working hard to build one out, I am speaking from experience.

Jumping into entrepreneurship is basically like diving off the deep end. You may or may not be ready for the opportunity but, once you are in, it’s either sink or swim. You are faced with constant uncertainty and no one is telling you what to do. Basically, you have been presented with a jigsaw puzzle and you have to piece it all together on the fly. It can be extremely overwhelming to say the least.

When I decided to begin my startup journey, I ended up moving to the D.C./Maryland/Virginia area (more commonly known as the DMV area) from New York City, instead of going to larger entrepreneurial markets such as the Bay Area or Boston. This was a deliberate decision, a story I will share some other time. However, one thing I will say is that I left a huge network from my years in the finance industry and had to rebuild one from scratch.

I have come to realize that the DMV has an interesting, but disjointed startup ecosystem. There are many world-class academic institutions and key government agencies that are instrumental for our country’s innovation economy. However, since the DMV is primarily influenced by the government way of life, building a top tier entrepreneurial ecosystem has proven to be a considerable challenge.

That is not to say things cannot or will not change. After spending a year and a half in the DMV startup ecosystem, I can say with certainty that a lot of good is happening in this area to early stage entrepreneurs. As such, here is my perspective on navigating the DMV startup ecosystem as a STEM idea-based entrepreneur.

Understanding the DMV Startup Ecosystem

The DMV startup ecosystem is unique in that it spans across the entire D.C./Maryland/Virginia area. Promising ventures generally focus around 2 industries:

• IT/Cybersecurity (Strength of Virginia)
• Life Sciences and MedTech (Strength of Maryland)

The strength of these two industries mainly comes from proximity to federal agencies and top academic institutions, with a symbiotic private sector having emerged to support a diverse network of consulting firms and technology providers.

Unsurprisingly, to gain traction, startups in the area generally develop a strong association with government agencies and academic institutions to build a unique competitive advantage. To take advantage of early stage startup support, the main opportunities are listed below:

Beyond the typical relationships with the government and academic institutions, there are some notable premier organizations that have gained a strong foothold in the area to foster the DMV’s entrepreneurial ecosystem.

In addition to the organizations mentioned above, early stage entrepreneurs should target notable conferences in the area to build out a network. There are many that brand themselves as the “go-to” conference. However, in reality, there are only several that are “must attends”.

Where to start if you are a budding entrepreneur in the DMV?

Have the right mindset

Founding and growing a successful company is a difficult endeavor not meant for the faint of heart. Even Jensen Huang admitted, “I wouldn’t build NVIDIA if I had to do it over again.” However, catching the entrepreneurial bug happens more often than not with the media constantly glorifying young college startup founders that have seemingly found the next big idea.

The DMV does a good job drumming up a lot of excitement around entrepreneurship. However, the biggest limitation of this area simply comes down to most people’s failure to move from idea to execution phase. Part of this is because the DMV has become so accustomed to the government pace of life of working 9am to 5pm. Do not be fooled. Working on a startup is a 24/7 job. The hamster wheel doesn’t stop, so you need to be committed 100%.

Don’t be afraid of the customer discovery process

You might think you have come up with that billion dollar business idea. You may be right, but, probabilistically speaking, you’ll probably need to iterate several times to get to the right product market fit. This means constantly interacting with potential customers and eventually getting to the truth. Long story short, entrepreneurs will need to roll up their sleeves and muck around.

Going out into the world to figure things out can be daunting. You probably don’t know where to start. However, what if I told you there are programs in place for early stage DMV entrepreneurs to gain free mentorship when starting their customer discovery journey? The best program for the customer discovery process is the NSF Innovation Corps (I-Corps).

The U.S. NSF I-Corps program is an immersive, entrepreneurial training program for university-based STEM researchers and early-stage startup founders interested in evaluating the commercialization potential of their work and learning entrepreneurial skills. Participants of the course learn how to apply “customer discovery” methodology to translate technological innovation into a commercially viable product. While the national program is restricted to high potential STEM ideas that have originated from academic settings, anyone can participate at the regional I-Corps level to investigate the potential of their startup idea. DMV entrepreneurs are fortunate to have UMD College Park as the mid-Atlantic region’s I-Corps lead institution. That said, all the other large DMV academic institutions also participate in the I-Corps program.

Build a local network of like-minded entrepreneurs

Being an entrepreneur is a long, arduous journey full of challenges and uncertainty. This is why tapping into your local entrepreneurial ecosystem and building a support system matters. Being surrounded by smart, like-minded individuals who are trying to change the world allows you to gain the understanding that you are not the only one facing adversity. This allows you to build the courage to push forward until you catch serious wind to your sails.

Be wary of VC fundraising too early

Too many entrepreneurs start with trying to raise money for their big idea. This is not the right approach. The truth of the matter is, early-stage ideas are typically ignored and do not gain much funding as the risk/return profile just does not work for investors. The other issue with raising too early is that you get milestones placed on you to get the business to the next level, like it or not.

For the early-stage idea, it is best to try to be capital light during the discovery phase until you reach product market fit. Once the momentum is clear, it’ll be easier to get the referrals to interested investors. Simply put, start with figuring out the business model that works, then the fundraising process will become much easier.

Parting Words

The DMV entrepreneurial ecosystem has the potential to become a key player in our country’s innovation economy. While the current landscape is supportive of increasing enthusiasm for early stage entrepreneurs, more help is needed when it comes to helping early stage entrepreneurs execute their ideas into reality. I am optimistic that with time and effort, the DMV area can build an enviable regional innovation economy.

Thank you for taking the time to learn more about the DMV entrepreneurial ecosystem! I will be the first to admit that I was not able to list all the relevant startup support organizations, but I do believe I have mentioned all the major ones that everyone needs to know. As I learn more about other helpful organizations, I will highlight them here or in separate blog articles.