The DMV (DC, Maryland, Virginia) region is rapidly establishing itself as a hub for climate innovation, and Halcyon is proud to be part of this momentum. According to PitchBook funding data, the nation’s climate tech landscape has been diversifying beyond its traditional strongholds like California’s Bay Area, with Washington, DC, recently ranking as the third most exciting Metropolitan Statistical Area (MSA) for climate tech in the United States. In 2023, DC saw a remarkable $373.84M in climate tech funding across 18 deals, signaling a rising tide of investment and interest.

This evolution is not just driven by financial capital, but also by DC’s unique position at the intersection of policy and technology. The region offers unparalleled access to policymakers, NGOs, corporates, researchers and advocacy groups, and more—a particularly advantageous benefit for climate entrepreneurs scaling in regulated industries. Additionally, DC is home to some of the most active climate investors and funders in the U.S. and worldwide, including The World Bank.

Halcyon has been deeply embedded in the DMV’s innovation ecosystem since our inception, with a strong track record of supporting ventures that drive both social impact and economic growth. In fact, 90% of the ventures from previous DMV-based fellowships—such as the Opportunity Intensive—are still thriving today. These ventures have raised over $4M in funding, generated $2M in revenue, created more than 600 jobs in the region, and positively impacted over 51,000 lives.

In 2024, Halcyon reaffirmed our commitment to climate work through the launch of our three key verticals—Climate, Health, and EquityTech—and subsequently created the DMV Climate Innovation Fellowship to support scalable, high-impact ventures in the region addressing climate mitigation, adaptation, and resilience.

Sourcing Founders (Erna Redzepagic)

When sourcing founders for the 2025 DMV Climate Innovation Fellowship, several key trends emerged. We noticed a shift from physical to digital products aimed at reducing carbon footprints, along with a rise in proactive solutions focused on mitigating climate risks, particularly for vulnerable communities. Cleaner, more efficient energy storage and production methods to support electrification and renewables also stood out as critical areas of innovation. Additionally, startups addressing circular economies and repurposing waste materials were increasingly prominent. We also saw growing interest in lowering barriers to electric vehicle adoption and an uptick in AI-driven solutions to help businesses and individuals actively monitor and reduce their carbon impact.

The DMV’s climate landscape has evolved as we’ve sourced and selected, with several patterns increasing in recent years. Nature-based solutions like those from Green Mechanics Benefit LLC are gaining traction, as well as a focus on water purification for underserved populations. One consistent area of growth has been green construction materials and sustainable urban development.

Several challenges do persist in sourcing. The DMV is a small geographic region, and many ventures are still early-stage, making scalability a key concern. Despite these hurdles, the region’s innovation ecosystem is growing. Ecosystem builders like the Baltimore Climate Tech Meetup, Maryland Energy Innovation Accelerator, Connectpreneur, DC Startup & Tech Week, Arlington Economic Development, 757 Collab, Bethesda Green, Conservation X Labs, DC Tech Meetup, and others continue to support emerging climate tech ventures. With additional innovation emerging from DMV-based universities, the region is becoming a hotspot for climate innovation—and this has greatly enhanced our own work.

Ultimately, we received 53 applications for this inaugural program, forming a final group of six ventures from Maryland, two from Virginia, and one from Washington, DC. View the ventures and their founders here.

Supporting Founders (Mercy Erhiawarien)

The 2025 DMV Climate Innovation Fellowship presents a unique opportunity to rethink how we can support our climate founders. By understanding their needs and adapting our approach, we can ensure that our accelerator model is best equipped to provide targeted solutions directly applicable to the cohort.

Building support for this cohort has come with its own set of challenges. One major hurdle is the current regulatory environment, which has shifted significantly in recent years. Changing policies, especially regarding the Inflation Reduction Act, have had a mixed impact on climate startups that were previously benefiting from its founder-friendly incentives. Additionally, as government financing patterns have shifted, we’re working to help our entrepreneurs connect with new sources of funding, leveraging our network to help open doors to the financial backing these startups need to thrive.

Halcyon is bringing its curated group of experts to bear through mentorship and resources, including skill series in climate finance and alternative financing. We also developed a new skill series session in partnership and stakeholder management to help these founders scale through key relationships. We are grateful to the mentors, advisors, and presenters contributing their time and knowledge to our cohort, including Andrew Don, Rina Lakhani, Helen Manich, Jamie Roberts, and Kyle Sigmund. Their guidance has already proven invaluable in helping our founders refine their models and build the strong foundations necessary for long-term success.

Looking Ahead

The 2025 DMV Climate Innovation Fellowship will continue with their second residency week at Halcyon from May 12th-16th. Before that, we’ll host a special session on April 17th on “Shaping a New Path for Climate Startups”—a chance for both current and past fellows share insights and dive deeper into the strategies that will help climate ventures thrive in today’s fast-changing landscape.

As the fellowship progresses, it aligns with the larger momentum of DC Climate Week (April 28th-May 2nd), which will bring together innovators, policymakers, and funders to explore new ways to tackle climate challenges. Halcyon is excited to be a part of this event and to contribute to the conversation, including through the involvement of our President & CEO, Dan Barker, on its Steering Committee. On April 30th, we’ll host a panel on “Rethinking Climate Finance,” bringing together experts to discuss new funding models and strategies.

It’s clear that the DMV ecosystem is making the region a true home for climate innovation. We’re eager to leverage our learnings and collaborations with local, domestic, and global partners to create a new model of support for these founders who are reinventing climate innovation through entrepreneurship.