Policy whiplash is forcing DC’s early-stage companies to pivot 

RealLIST Startups 2025 in DC is supported by JPMorgan Chase Startup Banking. Technical.ly is a free news resource thanks to financial partners like this Technical.ly client.

Startup founders from Prince George’s County to Northern Virginia are feeling the effects of federal government funding cuts and broader economic turmoil — and it’s forcing some to pivot their business models. 

Early-stage startups working with publicly-funded entities, in particular, are considering altering structure, several entrepreneurs said on Thursday at a dinner celebrating the 2025 DC RealLIST Startups. 

Kathryn Adabonyan, founder and CEO of the education technology company GoPursue, created a hub for high school and college students, educators and employers to connect and better help students access jobs. She often works with public school systems, including DC’s. But with school budgets in flux, she’s pivoting to work with employers more. 

“All the schools have no idea what’s happening anymore,” Adabonyan said, adding: “We’re becoming more like a recruiting agency or a talent sourcing agency, as opposed to an edtech company.”

Ripple effects from the federal government also affect legal tech. SIID Technologies’ founder Eri O’Diah is weighing a pivot, too. 

The startup seeks to help lawyers’ workflows, especially public defenders. A process of selling to the federal government has been paused, so O’Diah is exploring the possibility of going into the corporate world or the commercial space. But the competition in those sectors is much steeper, O’Diah explained. 

“I’m trying to think, [and] brainstorming ways we can pivot,” she said. 

On the consumer side, InPress’ cofounder and CTO Alex Long is reckoning with people’s news fatigue. He and his team at the media habits-based dating app look for ways to keep people excited about connecting over the news. 

That’s an even more distinct priority since Trump’s election, he explained.  

“The election made it more clear than ever that making media literacy sexy is important,” Long said. “We strive to hold a certain vibe that keeps you wanting to come back.”

Not all founders experience such major shifts in perspective or strategy. One entrepreneur noted growth in her business since Trump took office in January. 

Founded by Kay Rodriguez, Outerly offers an app that matches small groups of strangers to go on walks throughout the DC region. She said her startup, which recently expanded its reach to Baltimore, grew 700% since February. 

“It’s wellness-oriented. It’s community-oriented,” Rodriguez said. “They’re willing to put in a little bit of an investment into their own joy, because everything else feels like it’s falling apart.”

Founders feel the disconnect between jurisdictions 

In the DMV — a metro region involving two states, a city and several counties — entrepreneurs noted it can be confusing to navigate the state-backed programming. 

SIID Technologies’ O’Diah moved to the area two years ago to start her business. She’s been having trouble accessing resources in the region and deciding where to register her startup. She maintains different mailing addresses to hopefully access as many resources as she can in different areas, including state-backed venture funding. 

“In order to access resources here in DC, I had to file as a foreign entity,” she said. “In order to even qualify for TEDCO, I had to get an office in Maryland and file as a foreign entity there.”

Each jurisdiction is in competition with its neighbors, explained Vennard Wright, founder of PerVista AI and former CIO for Prince George’s County. For example, DC competed at the end of 2023 with Alexandria to bring Monumental Sports and Entertainment, the management firm behind local sports teams like the NBA’s Wizards, out to Virginia. Right now, the district is closing a deal to get the NFL’s Commanders to leave Maryland and return to the city. 

That competition will only increase in the near future. 

“What’s happening now, in terms of what’s trickling down from the federal level, there’s going to be even more competition because we’re going after the same grant dollars,” Wright said. “There is no region from a government perspective, but certainly for consumers, it is a region.”