Greater Washington builds great startups – we just can’t keep them here.
Over the past 20 years, 105 D.C. area startups were sold for more than $1 billion, but only 16 of those deals kept the businesses in the region, according to a new report examining innovation in the D.C. area. And out of 6,000 business sales over the last 20 years, about 75 percent were to out-of-region purchasers.
Recent examples include the $1.65 billion purchase of Cvent Inc. by San Fransisco-based private equity firm Vista Equity Partners and the $532 million purchase of Opower Inc. by California-based Oracle Corp.
And when these companies are bought, it’s common for the acquirers to shift those workforces to other cities. More importantly, the executives and leaders who are able to start new companies often go with them, leading to the loss of top talent for the region.
So can the region create the entrepreneurial, innovative businesses it needs to spur growth? The short answer is yes, but the longer answer requires the business community to get involved by prioritizing local acquisitions, forming a new innovation entity and focusing on cutting-edge research to stay ahead of…
Read entire news article at WashingtonBusinessJournal.com.