The DC Certified Capital Company (CAPCO) Program is a successful effort by the District of Columbia to increase private capital investment for new or expanding small businesses. The CAPCO model, which has been enacted in DC and a number of states, combines private-sector expertise in identifying, evaluating, and financing businesses with the public sector’s interest in a stronger local economy.
DC CAPCO investment funds, which are called “CAPCOs,” are managed by professional venture capitalists, stimulate the creation of high-wage jobs and provide an incentive to retain, expand, and attract a wide range of businesses. Since the start of the DC program in 2003, CAPCOs have exceeded target milestones for deployment of DC CAPCO funds. It is important to distinguish the DC CAPCO Program from a grant program; CAPCOs make investments, not grants, into qualifying businesses. As such, only the most competitive businesses – as determined by the individual CAPCOs – that meet the program’s qualifications are able to receive investment via the DC CAPCO Program.