The new pool of public funding for early-stage startups in DC will start flowing to companies in early 2026, thanks to two experienced venture firms appointed as the city’s first fund managers.
Leaders with the DC Venture Capital Program, a $26 million investment vehicle launched a year ago by Mayor Muriel Bowser, are beginning to meet with and vet potential portfolio companies. San Francisco’s Hustle Fund and New York City’s Lytical Ventures will be working with the DC private sector lead K Street Capital.
The program allows tax dollars to be invested in promising companies headquartered in DC proper.
“We’re open for business,” said Hustle Fund partner Haley Bryant. “I’m just so excited to get to start investing and integrating founders in DC.”
The program allows tax dollars to be invested in promising companies headquartered in DC proper. Each of the fund manager firms is required to at least 1:1 match the capital, Bryant said. That means the total available funds will be at least $52 million. The fund is thanks to the US Treasury’s State Small Business Credit Initiative, a federal program to provide states (and DC) with cash for companies.
Funding for young startups has been hard to come by across the country in the current economic environment. Most of the funds in 2024 went to late-stage companies in DC, and that’s been a trend so far in 2025.
Lucas Nelson, partner at Lytical Ventures, plans to make the first investment in the first quarter of 2026.
Investors to focus on cyber, AI startups
Both fund managers’ firms, which invest in industries like cybersecurity and fintech, already boast DC region companies in their portfolio.
Lytical Ventures invested in the Northern Virginia healthtech startup Careviso, and Hustle Fund has invested in the DC manufacturing intelligence platform Ampere and the fintech startup FonBnk.
“I’m already really invested in DC individually,” said Bryant, of Hustle Fund. “We’re already doing the work — to be able to do it with more support and to help elevate this ecosystem, just was really exciting to me.”
She’s also planning to host weekly office hours for entrepreneurs to learn about the program in an informal setting.
Investors are looking for startups working in regulated industries, like cybersecurity and dual-use technology. Other potential verticals include healthtech, fintech, data technology firms and AI-powered companies.
K Street Capital is the overall manager of this program, but the investment decisions will ultimately come from Hustle Fund and Lytical Ventures, Bryant said. The local firm will also be heavily involved in finding founders, be a collaborator on the due diligence process and co-host events with the fund managers to attract applicants.
Startups that land investment will be portfolio companies in Hustle Fund or Lytical Ventures, per Bryant. Just one of the managers will typically invest in a startup, but co-investments are possible.
Nelson from Lytical Ventures said his goal is to help companies grow, which would in turn be a boon to the city.
“If we do that well,” Nelson said, “it leads to returns for investors and broader benefits like a stronger DC tech ecosystem and more high-quality jobs.”
