DC weekly roundup: TikTok creators on loss; $26M city VC fund; WMATA RTO mandate

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DC launches a city-backed VC fund

Today city leaders announced the district is following Maryland and Virginia in setting up its own investment vehicle for early-stage companies. Starting with $26 million in government funding, the DC Venture Capital Fund will be led by the Office of the Deputy Mayor for Planning and Economic Development.

The program will be managed by K Street Capital, and the private investors they court will be required to at least match DC’s investments. The plan is to make the fund self-perpetuating. 

“The goal is that with this investment, these local companies will go on to expand, become financially stable,” Deputy Mayor Nina Albert said Monday, “and generate returns that the district can use to continue this effort well into the future, so that it is a self feeding ecosystem.”

➡️ Here’s how the fund will work

Influencers are shaping communities — and news

As creators face a possible TikTok ban in January, loss of income is not the top concern, several of them told Technical.ly. What they fear more? Missing the content creation tools — and the looming fragmentation of audience. 
 
“It highlights the critical reminder that we don’t truly own the content we share on these platforms,” said Leonard Young, the creator behind Delawareblack.com, “and it can be removed or restricted at any time.”
 
The ban is coming as influencers are increasingly becoming a part of journalism. At Technical.ly, we hired our office manager — who is also a comedian known as Tata Sherise — to be a part of our first-ever Creator in Residence Program. So far, she’s dropped videos outlining social media privacy tips and explaining the cybersecurity talent gap. 
 
➡️ A majority of US adults under 30 say they use TikTok

News Incubator: What else to know

•  DC’s Last Energy received a letter of interest from the Export-Import Bank of the US to set up four of the startup’s micro-sized nuclear power plants in Wales. This comes after a $40 million Series B round over the summer. [Reuters/Technical.ly] 

• WMATA CEO Randy Clarke is ordering staff to return to the office by July. [Washington Post]

• Workers and owners at DC restaurants have become more politically outspoken in recent years, and many are bracing for how to handle another Trump administration. [Washingtonian]

• Sublime Security, a local cybersecurity startup, raised a $60 million Series B after announcing a $20 million Series A round in the spring. [Washington Biz Journal]

• DC will start enforcing its ban on cashless businesses Jan. 1. The law was passed in 2020, but the pandemic made it unenforceable and it was paused this year. [Axios]

• Mysterious drone sightings have spread from New Jersey to other states on the East Coast, including Maryland. Feds say it’s not a security threat, and some officials have suggested sightings are actually crewed aircraft, but there’s still no solid confirmation. [NPR]

• The DC Council voted to recommend to expel Ward 8 council member Trayon White, who allegedly accepted $156,000 in bribes from a government contractor. The expulsion vote is expected to happen in February. [51st]

Understanding the local tech economy

DC’s culture and power, Maryland’s cybersecurity pros and PhDs, Northern Virginia’s data centers and software developers: No doubt the DMV region is one of the most important tech clusters on Earth.

This startup ecosystem is rich with technical talent. But DC remains expensive — the region had one of the country’s worst declines in economic mobility — and most of its research is within the federal government, which doesn’t always line up with commercialization.

What’s next for this innovation hub as it pushes toward “Silicon Valley of the East”? It’s all wrapped up in our State of the DC Tech Economy report.

➡️ Get the full picture and download the report

🗓️ On the Calendar

• Women and Gender eXpansive Coders DC is hosting a holiday party with DC Women in Agile on Dec. 18.  [Details here]

• Perfect your pitch at a workshop hosted by Unstuck Labs on Jan. 7. [Details here]