It's tough to imagine a D.C. tech community without 1776 at the center.
But with the ever increasing rumors of a deal to merge 1776 with Philadelphia, Pa.-based co-working space Benjamin's Desk, a world without the 1776 brand at the center of the community could be a reality.
The way The Washington Business Journal reports it, 1776 would be merged into the Benjamin's Desk and the Union software would be spun out into its own software company. In this plan, Burfield would head up the company, and WBJ reports that a few key 1776 members would join him in the deal.
DC Inno is still confirming these reports, but no matter how a deal pans out — if it does at all — it's a reminder of how volatile a tech ecosystem can be when it's centered on one single entity.
When 1776 launched in 2013, the group launched as a community hub for entrepreneurs with $200,000 in grants from the District government to back it up. Startups could rent out space, and 1776 would partner with local universities and entrepreneurship programs to provide much-needed resources in the D.C. metro area.
Then came the 1776 venture capital firm, which made investments in local startups like MPOWER, Babyscripts and Aquicore.
But in recent years, 1776 has tried to bring that model globally. Expansion focused on places like their Brooklyn Navy Yard space in NYC, a location in Dubai and a spot in San Francisco, that has since been divested. Executives were added and moved around to accommodate the changes and growth — such as the edition of Penny Lee as chief strategy officer and Peter Cherukuri as president and chief innovation officer.
While 1776 has been growing, it also hasn't been all rainbows and butterflies for the company. A number of team members have been leaving the group each month, such as managing director David Zipper (who played a huge role in 1776 landing those District grants), D.C. campus manager Shahier Rahman and Kate Nolan, who was one of their first employees. 1776 has struggled to become profitable. It's not a surprise a deal is said to in the works and imminent.
The question D.C. tech will be left to answer is this: How do you fill the vacuum 1776 could leave if the deal goes through and if its brand changes?
Who will take its place? And, does D.C. tech need someone to?
However, a new partner handling leases, co-working and other space-based business within 1776 could help turn around the startup that's been struggling to become profitable in the past four years. Especially when Benjamin's Desk has had its eyes on expanding further outside of the Philly metro area and continues to strengthen its relationship with 1776 through the Challenge Cup.
Having a general startup hub for entrepreneurs has worked seemingly well in other markets, like Chicago with 1871 or Austin with Capital Factory. MassChallenge is seemingly filling that void in Boston, as it also plots expansions into other cities like Austin.
But D.C. tech is different. It's siloed — with people typically sticking to their set mission or industry. Not often do you see cybersecurity companies paired with e-commerce apps or edtech companies working alongside hospitality and event tech startups.
At 1776, that happens — between the challenge cups, the pitch competition, the work spaces, the panel discussions, and office hours hosted by members of the tech industry. It's the confluence of startup energies, with a venture fund that invests in a wide variety of "regulatory hacking" startups.
So, as the news of the deal continues to emerge, the question we should be asking is not "What happens to 1776?" but "What will happen to DC Tech?"
