Ecosystem insights

JASON CHEN

CEO, VENTURESCOPE AND MACH37, TYSONS

What technologies are cyber startups tending toward, and are those focuses reflected in Virginia?

The current landscape is continuing its evolution from static defense to proactive resilience. Startups are prioritizing agentic AI, non-human identity security and supply chain transparency to combat the rise in malware-free intrusions relying on social engineering and stolen credentials. We are tracking the rise of agentic AI and autonomous security operation centers, where startups deploy AI analysts to triage with autonomous remediation permissions. There’s a particular surge in securing non-human identities to detect autonomous malicious machine-to-machine access.

While Virginia-based startups mirror global trends, their unique strengths lie in defense tech and critical infrastructure protection. These startups are more likely to be dual-use oriented, and have differentiators linked to compliance and energy-conscious AI.

How competitive is the market for AI cybersecurity tools, and what can founders in the field do to stand out?

The 2026 AI market is extremely competitive, with a few massive platforms capturing the majority of resources while thousands of startups fight for the remainder. This is driving a shift from point solutions to integrated platforms as enterprises attempt to fix “tool sprawl.”

To compete, new startups are carving out “deep tech” moats in niches like non-human identity (NHI) security and “circuit breaker” protections for AI agents against prompt injection in a space where machine identities now outnumber humans 50-to-1. AI startups must shift their focus from “selling AI” to “solving outcomes,” differentiating themselves by moving towards agentic systems that safely execute.

What emerging technologies are gaining ground? 

Virginia’s cybersecurity sector, in particular, is focusing on quantum-resistant security through quantum-proof keys and crypto-agility to meet new federal standards, as well as securing machine-to-machine communication to address growing AI concerns.

RYAN HALL

EXECUTIVE DIRECTOR, SHENANDOAH COMMUNITY CAPITAL FUND AND SHENANDOAH VALLEY TECHNOLOGY COUNCIL, STAUNTON

What is unique about the entrepreneurial ecosystem in your region?

The Shenandoah Valley is extremely collaborative. Our strength really stems from the rural hospitality any tourist receives when they visit. That same energy extends to entrepreneurs when they are looking for resources or access to capital. Our assistance doesn’t stop at a county line or revenue threshold. Each support organization in the valley is dedicated to building a stronger regional support network, and our entrepreneurs feel it.

SCCF made several changes to its programs within the last year — which has had the greatest impact?

We’ve made a concerted effort this year to realign our programs with our strengths in capital access and acquisition. For nearly 20 years, we’ve been lending to entrepreneurs in the valley, and we want to make sure that expertise is conveyed to our program participants whether they are looking for equity or non-equity funding. While not a big visible change, I think adjusting our curriculum point back to capital building and sound financial practices is making the biggest impact.

How do SCCF microloans assist entrepreneurs?

We hold a unique space in the incubation/acceleration community because we are able to provide loans to startups. Some programs have access to equity capital, but we have the ability to provide early-stage startup capital in the form of a five-year loan of up to $50,000. Generally, entrepreneurs have used these funds for overhead costs, minimal viable product development, equipment purchases, etc. Our only limitation is commercial property acquisition and buildout.

SOMIAH LATTIMORE

EXECUTIVE DIRECTOR, APEX CENTER FOR ENTREPRENEURS, VIRGINIA TECH, BLACKSBURG

You joined Virginia Tech from the University of Richmond last year. In what ways do the entrepreneurial ecosystems of these universities differ or overlap?

Both ecosystems are collaborative and interdisciplinary but differ in scale and context. Richmond offers an intimate environment with strong metro connectivity, and its initiative began just before my tenure.

In contrast, Virginia Tech founded the Apex Center for Entrepreneurs 10 years ago and operates on a larger scale, providing access to a broader talent pool through a land-grant university-wide platform and supporting founders at all stages.

Richmond’s ecosystem is shaped by proximity and close-knit relationships; Virginia Tech’s by technical breadth, scale and national reach, with particular density in Virginia and an established footprint across the commonwealth.

What attributes do aspiring student entrepreneurs need to be successful?

Curiosity, resilience and coachability are essential. Successful entrepreneurs test assumptions, engage customers early, accept feedback and iterate continuously. They combine ambition with humility, collaborate across disciplines and remain focused on the problem. Initiative is also important; founders who begin before feeling fully prepared often learn the fastest. Entrepreneurship is about taking action and building habits through real-world experimentation, rather than waiting for the perfect idea.

What industries are Virginia Tech student founders interested in?

Our students are committed to improving the human condition. There is strong interest in technology and AI solutions, fintech, edtech, healthtech and social impact and sustainability ventures, as well as creative and community-based businesses. This diversity reflects the interdisciplinary approach of Virginia Tech entrepreneurship, where founders often blend technical, design, business and service-oriented skills.

DELCENO C. MILES

PRESIDENT AND CEO, THE MILES AGENCY, VIRGINIA BEACH

Based on your own experience as a founder, what advice would you give other entrepreneurs? 

Seek support from credible and knowledgeable experts/mentors who are where you aspire to be. Have a solid plan about what your business is and who your target audience(s) are. Expand your network in the community and in your industry by joining affinity organizations. Volunteer your services if necessary as you build your business and brand to give prospective clients a preview of what your capabilities are. Consider teaming with others to build capacity for client pursuits. Use resources designed to support your business at little to no cost, such as the Small Business Development Center in your area, the U.S. Small Business Administration and the Virginia Department of Small Business and Supplier Diversity, to name a few.

What challenges might entrepreneurs not take into consideration when starting a business? 

Entrepreneurs might not consider the financial and time commitments needed to build and scale your business. Owning a business is definitely not a 9-to-5 type of endeavor. Most startups are usually underfunded and may not have the collateral to receive financing from traditional resources like banks or credit unions. Whatever funds you have, carefully invest them into the business, not the perks like cars or fancy office space. Keep your overhead as low as possible. Work from home. Hire support team members on a contractual basis versus employees. It saves money and you only pay for what you need at the time.

What are the key elements of a successful pitch to prospective clients?

The primary key elements are what distinguishes you from your competitors and your success record. Clients want to know how you can help them solve their problem(s). Be ready to address that directly.

JENNIFER O’DANIEL

SENIOR DIRECTOR, VIRGINIA VENTURE PARTNERS; PROGRAM MANAGER, VIPC LAUNCH, VIRGINIA INNOVATION PARTNERSHIP CORP., RICHMOND

What trends are you seeing among Virginia startups, particularly software and cybersecurity startups?

We are seeing a significant increase in AI startups across Virginia, enabling faster product development cycles and accelerating time to revenue. In cybersecurity, startups are increasingly centered around AI-native solutions, with founders building automated, intelligent platforms rather than traditional tools. At the same time, there is growing momentum around dual-use technologies and digital twins, reflecting the region’s strong intersection of commercial innovation and government-driven demand.

What challenges are unique to Virginia’s entrepreneurial ecosystem?

Virginia has emerged as a top 10 venture capital market nationally, underscoring the strength and momentum of its startup ecosystem. However, at the same time, investors are writing fewer, larger and more conviction-driven checks, with heightened expectations around traction, revenue and capital efficiency.

Pre-revenue and pilot-stage companies have faced increasing challenges in raising angel capital. To help address this funding gap, VIPC launched the Launch Note program, which incentivizes angel investment by matching capital at a 1:2 ratio. Through this initiative, we have funded seven companies over the past several quarters.

What do you look for when you’re evaluating applications for the VIPC Launch Grant for early-stage startups or for the Launch Note program?

We seek founders with deep domain expertise, paired with the passion and conviction needed to attract and inspire top talent. We prioritize companies addressing large, scalable markets that can draw venture capital into Virginia and drive meaningful job creation. Equally important, we look for clear evidence that customers will derive real value from the product.

MIKE STEELE

PRESIDENT AND CEO, ACTIVATION CAPITAL, RICHMOND

How does Virginia’s life sciences startup ecosystem compare with those of other states you’ve worked in? What lessons could Virginia learn from them?

Virginia is highly competitive, but it is still earlier in its maturation curve than states like Massachusetts, North Carolina and New Jersey and has similarities to Georgia, all pit stops during my career. What Virginia has today is a strong research base, growing entrepreneurial activity, lower operating costs than the major coastal hubs and increasing momentum in manufacturing and commercialization.

The lesson for Virginia is not to copy any one state. It is to be intentional about building the pieces of a complete ecosystem. Virginia can win by doing four things well: supporting entrepreneurial support organizations and expanding early-stage capital; scaling wet lab and pilot/manufacturing infrastructure; creating a more coordinated commercialization-to-workforce pipeline; and making site selection and permitting easier for growing companies while maintaining its status as a top tier business-friendly state. Virginia already has the core assets. The opportunity now is to connect them with the same level of long-term strategic discipline that made those other states nationally competitive.

In what ways did Activation Capital expand its Frontier BioHealth accelerator in February?

Frontier BioHealth was created to address a critical gap facing emerging biohealth founders: access to practical guidance, sector-specific expertise and trusted connections needed to translate scientific innovation into scalable, investable companies. Following its first cohort, the program is advancing with deeper advisory engagement and a more flexible delivery model informed by founder feedback and early outcomes

Frontier BioHealth is now delivered through a more flexible engagement model, including rolling admissions and an asynchronous cohort structure, allowing companies to participate alongside ongoing research, development and commercialization efforts. This approach reflects the realities faced by scientific founders who must balance lab work, regulatory planning, fundraising and team development without stepping away from critical work.