Amazon has chosen Northern Virginia’s Crystal City and New York City for its second headquarters, and the D.C. area has been abuzz with speculation, excitement and skepticism.
The e-commerce giant says HQ2 – now split in half – will bring more than 25,000 employees and a $2.5 billion investment to Northern Virginia and the surrounding region.
With that much money at stake, we asked around the region's business community for thoughts on what HQ2 means for the D.C. metro as a tech hub.
Russ Ramsey, Chair of the Greater Washington Partnership, said in a statement that HQ2 is a win for D.C. as a region: "Amazon chose the Capital Region because of our collective assets – an educated workforce, incredible universities, and a growing tech sector to name a few. Amazon’s new headquarters gives the region the opportunity to transition from a slow-growth to a fast-growth region, but we have to come together to ensure we capitalize on this opportunity.”
Jonathan Aberman, director of Amplifier Ventures, told DC Inno that diversification is key to foster that economic growth: "The answer is not venture capital – that will come eventually – it’s in the business community working more overtly with entrepreneurs, universities and federal labs."
And preparing to fill that role takes preparation, he said: "Now that Amazon HQ2 is coming to our region, we must have a plan to grow our region’s innovation community."
Logan Soya, CEO of Aquicore, also told DC Inno the decision and publicity around it is a seed for growth: "The area is in need of something to revitalize it, and it’s a big move for the D.C. ecosystem to have Amazon setting its foundation and roots; it will help with tech talent and a lot of things."
Ted Leonsis, CEO of Monumental Sports and Entertainment, said in a statement that the DMV already has a lot of those pieces in place: “We are already a global hub for tech innovation and home to some of the best educated, most skilled workforce in the country. Now, thanks to Amazon’s decision, we all have a great chance to continue to build around our common purpose: making this the best place in the world to live, work, innovate and compete.”
And with talent and investment comes positive attention, Gravy Analytics founder and CEO Jeff White told Inno.
"The impact Amazon will bring to D.C. is more than just an influx of jobs and capital investment — we have some of the brightest tech minds and yet we rank 10th for venture capital investments, only receiving 1.6 percent of total funding.
"With Amazon in our backyard, the nation’s capital will be known as much more than just a data center corridor. The location of an Amazon HQ here will bring valuable attention to our region as one of the top places to work and live, and could be the springboard for additional capital investment and a cycle of growth for startups in the region."
For Jenn Maher, CEO of 1776, the move is similarly a validation of how far the region has come:
“When we opened our 1776 Crystal City campus in 2016, we believed in the vibrancy of Northern Virginia’s growing technology sector and wanted to be a resource to allow for further innovation and help entrepreneurs grow and startups succeed," Maher said in a statement. "Amazon.com’s announcement to locate one of their new headquarters into Crystal City validates this region’s tremendous assets as a hub for world class talent, innovation, and a broad based economy.”
"It’s important for the DMV to realize that we only won because of our combined strength so we need to share the rewards to all municipalities equitably."
But there's plenty of room to grow, Social Tables founder Dan Berger told DC Inno, and smaller companies should muster similar support from the ecosystem.
"I welcome Amazon to the D.C. region and hope their arrival serves as a catalyst for both a substantive dialog on inter-regional cooperation and a conversation on how we can prop up our early/growth-stage tech businesses," Berger said. "It’s important for the DMV to realize that we only won because of our combined strength so we need to share the rewards to all municipalities equitably. Additionally, newer/smaller businesses need a government-led support system in place to ensure they are not left behind in the dust."
Steve Case, AOL co-founder and CEO of Revolution, shares that perspective: "The best economic development strategy is not to lure existing companies to open offices of factories, but instead to birth the new companies that could be the Amazons of tomorrow," he said in a statement. "That said, I am excited for what today’s announcement adds to the D.C. region … It has been great to see how the tech sector has evolved in Virginia over the past 35 years. Amazon’s announcement is a win not just for Virginia, but also for the entire greater D.C. region."
