Biz Talk: Amid strong business climate, Arlington invests in startup ecosystem in 2024 | ARLnow.com

This article was written by Michael Stiefvater, Director of Business Investment for Arlington Economic Development.

Arlington stands out for its thriving business climate, and Arlington Economic Development (AED) took advantage of these strong fundamentals to invest in our startup ecosystem in 2024.

This year, Arlington was named the Country’s Best Mid-size Metro for Business while being the CNBC Best State for Business, recognizing our educated workforce, top-notch education system and business-friendly policies that support long-term growth and success for businesses.

However, despite these great fundamentals, Arlington is still experiencing challenges with office vacancies, which impacts Arlington’s commercial tax base. With large U.S. companies making fewer big moves or expanding less frequently to new markets, we looked to foster “homegrown” businesses and talent in 2024.

Arlington’s economic development strategy focused heavily on investing time and resources into Arlington startups and the startup ecosystem through the Arlington Innovation Fund (AIF). AIF encouraged the growth and success of Arlington technology startups by providing access to capital and enhancing the local tech ecosystem through sponsoring unique initiatives and programming. New hires at AED helped execute the strategy and supported new partnerships with Citrine Angels, Unstuck Labs and DC Startup Week.

Through the AIF Catalyst Grant program, Arlington awarded nine eligible Arlington-based startups non-dilutive coinvestment grants ranging from $25,000 to $50,000. Qualifying companies were early-stage ventures, and their grant funds can be used for hiring employees, conducting research and development, occupying commercial real estate, and other business-related expenses.

AED is closely tracking the success of this program. Still, early wins include AI trucking logistics startup GenLogs expanding from five employees to nearly 30 in the past nine months and HR-tech company Pryze scaling its platform and gaining traction with large customers.

Other significant moves and investments this year include:

Looking ahead to 2025, AED expects continued growth in our tech ecosystem, especially in the Advanced Computing (AI, cloud computing, etc.), Cybersecurity and Defense Tech industries. We’re also excited to see Virginia’s 2018 investments in our tech talent pipeline come to fruition with the opening of two new higher education tech and entrepreneurship programs, George Mason’s FUSE in December and the Virginia Tech Innovation Campus in February.

Arlington will continue to grow as an innovation hub thanks to Amazon and Virginia’s investments in the area. Exciting things are in the pipeline for the County in the new year.