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Globalinx grows bandwidth at subsea cable station

Summary

Virginia’s “” is significantly growing its capacity at Globalinx’s subsea internet cable landing station at Corporate Landing Business Park.

A Virginia Beach-based carrier-neutral cable-landing station and data center operator, Globalinx finished construction on four new cable bores at its Sandbridge landing site in late May, a $39 million project.

Since 2018, Globalinx has connected Virginia Beach to Europe and South America through three transatlantic cables carrying ultra-high-speed internet traffic: MAREA, owned by Microsoft and Meta Platforms/Facebook; BRUSA, owned by Telxius; and DUNANT, owned by Google. Globalinx now hosts the most subsea cables on the East Coast.

“The infrastructure we built adds another 400% internet capacity to Virginia,” says Globalinx founder and President Greg Twitt.

The first two of the four new subsea cables will likely be ready for use within one to two years. More than 95% of the world’s data traffic travels through subsea cables, and Globalinx’s Virginia Beach landing station is the only confluence of subsea cables in Virginia and on the East Coast between New Jersey and South Carolina.

“Virginia Beach is really a fiber gateway to Virginia,” says Twitt. “These cables and cable landing station are essential for further growth in Virginia in terms of data center development.”

Globalinx is vital to Virginia Beach’s digital port initiative, adds Deputy City Manager Amanda Jarratt. “It’s all about connectivity and the time it takes for your computer to send signals to a server and get a response. The magnitude of capacity that these new cables brings is truly exponential.”
Virginia Beach officials plan to promote the cables to various business sectors, including health care, and finance.

“Because we are so close to the entry point of the subsea cables, they are truly valuable to these sectors,” Jarratt says. She adds that the city hopes to make several economic development announcements associated with the new cables over the next year.

Globalinx plans to start construction this summer on a new facility in its 11-acre Corporate Landing complex to house the additional cables. It is slated to be completed in mid-2026.

Additionally, Virginia Beach has joined the four other South Hampton Roads cities in forming the , a 119-mile fiber optic cable loop connecting with the subsea cables to link municipal networks and accelerate high-speed connectivity.

Manassas aviation startup lands $115 million round

Demand has taken off for Manassas-based ‘s electric short takeoff and landing aircraft, the Ultra Short, with more than 2,200 preorders totaling more than $10 billion.

Now, with $115 million raised in a round that closed in April, the company plans to move from prototype to development, Electra Chief Financial Officer Max Ochoa says.

“There’s a lot of additional headcount and technology that needs to be brought to bear to go from basically designing, developing, and then starting to think about manufacturability and certifiability of a brand-new aircraft,” Ochoa says. “That requires capital.”

The nine-seat EL9 follows on the heels of the company’s EL2 Goldfinch two-seat prototype, which flew for the first time in November 2023 and has now achieved 80 flights, Ochoa says. The company, which launched in 2020, doubled from 40 employees in 2023 to about 80, with plans to grow to about 120 employees, including engineers, in the next year.

Billed as the world’s first ultra short aircraft, the EL9 requires only 150 feet to take off and land and will have a range of 1,100 nautical miles with a 3,000-pound payload. It uses electric motors to blow air over the wings for takeoff and is powered by a hybrid-electric propulsion system that recharges the aircraft in flight, eliminating the need for charging infrastructure. The company plans to design the aircraft for use by commercial and defense customers. In 2023, it received an up to $85 million award from the Air Force for prototype development. That same year, the company also received a grant and award from the Virginia Innovation Partnership Corp.

The Series B round was led by New Jersey-based venture capital and private equity fund . Prysm’s portfolio includes electric vehicle maker Rivian and Field AI, an artificial intelligence robotics company.

Electra is also scouting sites for a manufacturing plant, with plans to select a location by mid-2026, Ochoa says, adding Virginia is among the states under consideration. Delivery of aircraft is expected to begin in 2029.

Joe Benevento, president and CEO of VIPC, says Electra’s Series B round was the second largest to be announced this year in the United States by an technology company.

“It’s been remarkable to witness the impressive growth trajectory of this homegrown Virginia tech startup,” he says.

Top five for June 2025

The top five most-read daily news stories on VirginiaBusiness.com from May 12 through June 12 included news of layoffs stemming from the ‘s efforts to cut spending on federal contracts.

1 | Newport News Shipbuilding to furlough 471 workers Company spokesperson said furloughs were not expected to last more than five months. (May 30)

2 | Booz Allen CEO says 7% of employees to be laid off About 2,500 employees, mainly in the management consulting business’ civil division, were expected to lose their jobs by the end of June. (May 23)

3 | DHS says it’s canceling $2.4B Leidos contract
A court filing revealed the federal government had terminated a cybersecurity contract that had been disputed by another contractor. (May 15)

4 | Leesburg firm lays off 155 after Navy cancels $170M contract The U.S. Navy notified government contractor Pantheon Data that the Department of Government Efficiency, aka DOGE, was requiring the military branch to cancel its service contract. (May 15)

5 | 41 Virginia companies made the 2025 Fortune 1000 Freddie Mac, the federally sponsored mortgage business, maintained its spot as the top-ranked Virginia-based company at No. 38 on the Fortune 500, down two spots from last year. (June 2)

For the record July 2025

Central Virginia

The Allianz Amphitheater at Riverfront kicked off its inaugural show June 7 with some blasts from MTV days past. Rick Springfield cruised into the new Richmond venue as headliner on the “I Want My ‘80s Tour” with opening acts John Cafferty, Wang Chung, and John Waite. A partnership between -based Red Light Management and Live Nation, the roughly 7,500-seat venue celebrated its grand opening June 4 with a performance by students from St. Andrew’s School in Oregon Hill. (Richmond Times-Dispatch; news release)

Molina Healthcare, a Fortune 500 company that manages health care services for Medicaid and Medicare recipients, is closing its Henrico County office and laying off 268 workers. California-based Molina notified the state that it would lay off all staffers there by July 14. The Henrico office’s closing is due to the nonrenewal of Molina’s state contract as one of Virginia Medicaid’s managed care organizations, the company’s letter to Virginia Works stated. (VirginiaBusiness.com)

Nightingale Ice Cream Sandwiches announced in May it would invest $5.8 million to expand to a new facility in Richmond, with plans to add 166 jobs. Established in 2016, Nightingale sells products in more than 5,000 chain and independent grocery stores, including Whole Foods Market, Kroger and Harris Teeter. It has doubled in size year-over-year and has outgrown its current production facility. The cold treat maker’s new 29,000-square-foot location will serve as both a production facility and Nightingale’s corporate headquarters. (VirginiaBusiness.com)

Glen Allen-based Fortune 500 health care logistics and supply company Owens & Minor backed out of a $1.36 billion deal to buy Rotech Healthcare Holdings, a Florida home-based care business. Owens & Minor and Rotech Healthcare Holdings mutually agreed to terminate the deal June 3, according to a filing with the U.S. Securities and Exchange Commission that also noted Owens & Minor paid a termination fee of $80 million in cash. News of the failed deal follows a February announcement that Owens & Minor was “actively engaged” in discussions to sell its products and health care services segment. (VirginiaBusiness.com)

Despite filing for bankruptcy in March, Plenty Unlimited will be able to finish construction of its vertical indoor farm facility in Chesterfield County. In May, U.S. Bankruptcy Judge Christopher M. Lopez approved a restructuring plan for San Francisco-based Plenty and its subsidiaries that will let it complete its vertical farm facility on 120 acres in Chesterfield’s Meadowville Technology Park. Plenty opened the first strawberry farm on its Chesterfield campus in September 2024. Construction is expected to begin in August on four remaining farms at its Chesterfield campus. (VirginiaBusiness.com)

The Virginia Commonwealth University Health System Authority is looking to build a hospital off Route 10 in Chesterfield. VCU Health sent a June 2 letter to the Virginia Department of Health indicating its intent to submit a certificate of public need application. The acute care, 66-bed hospital would be located at 7220 Beach Road on 56 acres. The proposed hospital site is located next to VCU Health’s $90 million outpatient surgery center that broke ground in May. Located at 9820 Iron Bridge Road on an 8-acre parcel, the surgery center is expected to open in 2027. (Richmond Times-Dispatch)

PEOPLE

Jennifer Schofield became the new park manager and vice president of in-park revenue for Kings Dominion on May 31. She succeeds Bridgette C. Bywater as leader of the Doswell amusement park owned by Six Flags Entertainment. Schofield has 34 years of experience in the theme park industry and was most recently vice president of retail at Cedar Point Amusement Park in Ohio. (VirginiaBusiness.com)


Eastern Virginia

The DeLong Co., a Wisconsin agriculture company, broke ground on May 29 on a $26 million agricultural export facility in Portsmouth that will be used to prepare whole grains and feedstuffs for shipment. The facility will have a storage capacity of 15,000 metric tons and will be located at the former CSX intermodal site, located at 1 Harper Ave. DeLong says it will be the first facility of its kind on the East Coast to receive unit trains and that it is expected to handle 15,000 to 20,000 containers yearly. The site is expected to be operational in early 2026. (VirginiaBusiness.com)

President Donald Trump’s proposed fiscal year 2026 budget would put 672 civil servants at NASA Langley Research Center in Hampton out of work. Trump’s proposal would slash NASA’s funding from $24.8 billion to $18.8 billion, a roughly 25% decrease. If approved by Congress, the White House’s suggested budget would cut the civilian workforce by about 32% across the entire agency, according to a technical supplement released in June. For FY 2025, NASA Langley has a civilian workforce that’s estimated to be 1,730 employees. The proposed budget would dial that back to 1,058 workers in FY 2026. (VirginiaBusiness.com)

Newport News Shipbuilding announced on May 30 that it would furlough 471 shipbuilders for up to five months, with the furlough taking effect on June 2. Although it is not a job termination, furloughed employees will not be paid for the time they’re out of work. A spokesperson said the furlough was done “to increase accountability and efficiency, and to improve overall performance in meeting our current and future commitments to the U.S. Navy.” NNS said it would continue to evaluate its business needs to determine whether continued furlough is warranted. (VirginiaBusiness.com)

Texas-based financial services company USAA announced on June 12 that it has purchased a larger office space in Chesapeake and will add more than 500 employees in the area over the next two years. USAA’s new Chesapeake office at 1341 Crossways Blvd. will span nearly 200,000 square feet and feature a claims technical training center with vehicles on-site for hands-on learning, a cafeteria and other dining options, a fitness center and a market. The current Chesapeake location has only 81,478 rentable square feet. USAA plans to begin working in the new space in March 2026.
(VirginiaBusiness.com)

PEOPLE

The U.S. Department of Energy’s Thomas Jefferson National Accelerator Facility in Newport News, commonly known as Jefferson Lab, announced in May that Jens Dilling was appointed as its next director, effective June 30. He succeeds Kimberly Sawyer, who held the role since August 2024. Dilling most recently was the associate laboratory director for neutron sciences at Tennessee’s Oak Ridge National Laboratory (ORNL), leading research at the High Flux Isotope Reactor and the Spallation Neutron Source. (VirginiaBusiness.com)

officials confirmed that the city’s new director, Christian Green, resigned June 11 after serving less than four months in the post. Green’s resignation marks the second time in a row Virginia Beach’s economic development director has departed after a short tenure. Deputy City Manager Amanda Jarratt is once again serving in the interim role. Virginia Beach City Council Member Barbara Henley said the city will likely undertake a national search for a new economic development director. The city says Green elected to resign from his position “due to pressing family matters.” (VirginiaBusiness.com)


Northern Virginia

The June 12 crash of a London-bound Air India plane that killed more than 240 people was the first fatal crash of a Boeing 787, a widebody, twin-engine plane known as the Dreamliner. But it’s the latest in a string of troubles for Arlington County-based Boeing, most of them tied to the 737 Max, a different plane. (See below.) The Boeing 787 struck a medical college hostel, killing at least five people and injuring about 50 more, when the plane came down shortly after takeoff in Ahmedabad. Many more victims were expected to be found during a search of the site. Only one of the plane’s 242 passengers survived; he was hospitalized with burns and other injuries. (Associated Press)

McLean-based Fortune 500 management consulting business Booz Allen Hamilton will lay off 7% of its 35,800-employee workforce, or about 2,500 employees, mainly in its civil division, Chairman, CEO and President Horacio Rozanski said during a May earnings call. Noting a recent “slowdown” in the federal government’s civil procurement and spending, Rozanski said that five of Booz Allen’s major civil technology contracts’ run rates were reduced in April. Meanwhile, a major Veterans Affairs tech contract ended in the last fiscal year. The loss of the VA contract and the reduction in run rates for the other five contracts are expected to lower Booz Allen’s consolidated top line by 6% in fiscal 2026, Rozanski said. (VirginiaBusiness.com)

U.S. Rep. Gerry Connolly, 75, a nine-term Democrat representing Virginia’s 11th District, died May 21. In April, Connolly stepped back as ranking Democratic member of the House’s Oversight Committee after announcing that his esophageal cancer had returned and that this would be his last term in Congress. He represented the City of Fairfax and most of Fairfax County. Before being elected to Congress in 2008, he served on the Fairfax County Board of Supervisors from 1995 to 2009. A special election for the congressional seat will be held Sept. 9. (VirginiaBusiness.com; The Washington Post)

In late May, the Justice Department reached a deal with Boeing that took criminal prosecution off the table for allegedly misleading regulators about the 737 Max jetliner before the two fatal planes crashes that killed 346 people in 2018 and 2019. Boeing agreed to pay or invest more than $1.1 billion, including an additional $445 million for crash victims’ families, removing the risk of a criminal conviction that would have jeopardized the company’s status as a federal contractor. (Associated Press)

Reston-based federal contractor Leidos acquired Kudu Dynamics, a Chantilly-based tech company that builds AI-powered cybersecurity tools for defense customers, in an all-cash $300 million deal that closed May 23. The transaction marked Leidos’ first acquisition in more than two years
and its first since Thomas A. Bell became the Fortune 500 defense, aerospace and IT firm’s CEO. Founded in 2013, Kudu, which has 170 employees, will operate as a wholly owned subsidiary in Leidos’ national security sector and will continue to be led by its founder and CEO, Mike Frantzen. (VirginiaBusiness.com)

Government contractor Technomics will invest $5.38 million to expand its Arlington County headquarters, adding 25,200 square feet of office space and creating 248 jobs, Gov. Glenn Youngkin announced June 11. Eastablished in 1984, Technomics opened its Arlington hqadquarters in 2000 and specializes in providing data and analytics-driven support services for United States and international government clients. The contractor, which has 300 employees has expanded its Arlington office three times since 2022. The Virginia Economic Development Partnership worked with Arlington County to secure the latest expansion project for Virginia. (VirginiaBusiness.com)


Roanoke/ Lynchburg/ New River Valley

Carilion Clinic is ending its agreement to provide nurses for the Roanoke city school system to instead focus on improving access to pediatric services across its region. The partnership between Carilion and the school system started in 2011. Now, as the next fiscal year begins, school officials will need to find a new school nursing option. The $2.7 million contract for the current year involves 31 nurses and one administrative position and there is a nurse for each elementary and middle school and two for the high schools, according to school system documents. (Roanoke Rambler)

Amherst County-based Old Dominion Job Corps Center will lay off 130 workers by June 30, due to President Donald Trump’s administration ordering the closures of contractor-run Job Corps centers across the nation. Old Dominion, in compliance with the Worker Adjustment and Retraining Notification (WARN) Act, notified the state June 3 of plans to lay off the employees due to the closure. The Job Corps program provides students ages 16-24 with education, vocational training and job placement assistance. Blue Ridge Job Corps Center in Smyth County is also slated for closure. (VirginiaBusiness.com)

City councilman Peter Volosin’s application to rent out his two-bedroom basement in south Roanoke was vehemently opposed by his neighbors and narrowly denied by a partial composition of Roanoke’s Board of Zoning Appeals June 11. The citizen board voted 3-2, with two members absent, on the application by Volosin and husband Malcolm Quigley, who requested to rent their basement out on Airbnb. More than 400 people from the south Roanoke area had signed a petition opposing the homestay, one speaker told the board. The couple could rent the property out for stays of 30 days or more as a by-right use. (The Roanoke Times)

Virginia Tech is adding a new level of drone defense research with $5 million from the U.S. Army. The award will create the Counter UAS Research and Testing Center, with the unmanned aircraft experts at the Virginia Tech National Security Institute and the Virginia Tech Mid-Atlantic Aviation Partnership leading the way. The goal is to help the Department of Defense and law enforcement deal with threats from both novice drone users and bad actors, according to the release. The new research and testing center will feature an outdoor test bed employing sensors. (Cardinal News)

PEOPLE

BWX Technologies, a Lynchburg-based nuclear components and fuel supplier manufacturer, appointed Gonzalo Cajade as chief human resources officer, effective June 1. He succeeded Robert L. Duffy in leading human resources, according to BWXT’s May 29 announcement. Duffy will continue with the company as chief administrative officer and as an executive adviser to the CEO. Cajade has over 20 years of global human resources leadership experience, most recently being executive vice president and chief people officer at Terrepower, where he led efforts focused on company growth and mergers and acquisitions. (VirginiaBusiness.com)

In May, Laura Treanor was named the fifth president of Roanoke’s Virginia Western Community College, succeeding Robert Sandel, the school’s leader since 2001. Her tenure began July 1. Previously, Treanor worked as provost, senior vice president for instructional services and dean of faculty at Vincennes University in Indiana. At Baker College in Michigan, Treanor also held several roles, including system associate vice president for institutional effectiveness. Treanor, who earned a doctorate in education at Virginia Tech, was selected from 61 candidates. (VirginiaBusiness.com)


Shenandoah Valley

A new Virginia law that took effect on July 1 will change how Clarke County planners review subdivision plats and site development plans. In localities with more than 5,000 residents, the law shifts the responsibility for reviewing these matters from planning commissions to local government employees or designated agents. Clarke is one of the few localities impacted by the legislation, as most Virginia localities already have given an employee the responsibility of conducting reviews. Planning Director Brandon Stidham said compliance will require the county to pass significant amendments to the county’s zoning and subdivision ordinances. (The Winchester Star)

Fulks Run Grocery, a beloved community store in Rockingham County, celebrated its 75th anniversary in June with a daylong event featuring games and music. Navy veteran Garnett Turner founded the business in 1949, initially as a small country store. About 10 years later, he created the Turner Hams country ham business, which today sells hams nationally. The family-run business has been passed down through generations and is currently run by Chad Ritchie. He says that after all those years, the business is still sticking true to its family’s recipe from the early 1900s. (Daily News-Record)

NextEra Energy Transmission held an open house in May to solicit feedback on preliminary routes for the proposed 105-mile MidAtlantic Resiliency Link, a 500-kilovolt transmission line that will cut through northern Frederick County. Regional electrical grid operator PJM Interconnection is spearheading the proposal, which is meant to satisfy the region’s future energy demands. currently consume massive amounts of energy in Northern Virginia. NextEra aims to file applications this fall with the Virginia State Corporation Commission and other state regulators. If approved, early construction activities would begin in 2029 with lines in service by 2031. (The Winchester Star)

The Rockingham County Board of Supervisors on May 28 unanimously approved a special use permit for the Virginia Poultry Growers Cooperative to expand its grain facility in Linville. Located at 3955 Virginia Poultry Drive, the facility opened in 2008 and has served as a central location for county farmers to buy and sell their grain. But president John King said time and a changing economic landscape prompted a need for upgrades. He said that the co-op has grown more than 40% since its founding and continues to expand. The upgraded facility will be over 200 feet tall when completed. (Daily News-Record)

Winchester-based Shenandoah University and Middletown-based Laurel Ridge Community College signed a memorandum of understanding on May 20 to create a guaranteed admissions program, enabling Laurel Ridge students to co‑enroll in up to three Shenandoah courses at community college tuition. The courses each carry three or four credit hours. The program allows early access to SU’s academics and student benefits like intramural sports, clubs, organizations and academic support services. Students who achieve their Laurel Ridge associate degree within three years, successfully complete co-enrolled courses and meet GPA requirements are guaranteed admission to Shenandoah to pursue their bachelor’s degree. (News release)

Denver-based Tract Capital wants to build a data center campus called Meadow Brook Technology Park in Frederick County. The center would be located on more than 600 acres of what is now farmland just south of Stephens City. The land is owned by Jason McDonald of Springwood Farms. During an open forum at Laurel Ridge Community College, some area residents raised concerns, feeling the rural location wasn’t suitable for a data center and fearing it would devalue homes. Others acknowledged the center could be the source of tax revenue. The project requires both a rezoning and a comprehensive plan amendment. (The Northern Virginia Daily)


Southwest Virginia

The Environmental Protection Agency has awarded Brownfields grants to LENOWISCO Planning District Commission and the Town of Pennington Gap, U.S. Rep. Morgan Griffith, R-Salem, chairman of the House Committee on Energy and Commerce Subcommittee on Environment, announced in May. The commission received a $1.2 million Brownfield Assessment grant to support an assessment of local brownfields. LENOWISCO Planning District Commission serves the Counties of Lee, Wise and Scott and the City of Norton. Additionally, Pennington Gap received a $276,563 Brownfield Cleanup grant. (News release)

On June 1, Del. C. Todd Gilbert stepped down as Republican minority leader in the Virginia House of Delegates, and House Republicans elected Del. Terry Kilgore, R-Scott County, to succeed him. If the GOP wins a majority of the House’s 100 seats this fall, Kilgore would become speaker. Kilgore has served in the House since 1994 and was previously House majority leader during Gilbert’s term as speaker in 2022-24. A Shenandoah County attorney, Gilbert is in contention to become the next U.S. attorney for the Western District of Virginia. (VirginiaBusiness.com)

News that China and the U.S. would significantly ease levies as they attempt to ratchet down trade tensions that have roiled global markets may have been a light at the end of the tunnel for some in the furniture industry, but Doug Bassett, president of Galax-based Vaughan-Bassett Furniture, said in May that ongoing uncertainty around trade has had a positive impact on the company’s business because it lacks much direct exposure to China in its supply chain. At the April High Point Market, Bassett said uncertainty around tariffs led many buyers to lean on the company as a source of stability amid a chaotic business environment. (BridgeTower Media)

In June, the Virginia Coalfield Economic Development Authority announced the award of a grant worth up to $200,000 to the Mountain Empire Community College Foundation from the Coalfield Workforce Development and Training Fund for workforce development and training. The grant will fund VCEDA region resident scholarships, tuition, training instructional costs, retraining costs and customized workforce training for area businesses. VCEDA has provided more than $1.2 million in total workforce development and training funding assistance to Mountain Empire’s foundation since 2018. (News release)

Almost million in state funding will help pay for workforce housing projects across the state, with about $8.6 million going to Southwest and Southside Virginia. Blacksburg, Bristol, Danville, South Boston, Washington County and Wytheville are six of the 10 Virginia localities that are slated to receive funding, each for a specific housing project. The awards are expected to create 740 workforce housing units in Virginia and leverage more than $254 million in private investment, according to the governor’s office. This funding is going through the Workforce Housing Investment Program, an initiative administered by Virginia Housing to increase the supply of this housing type. (Cardinal News)

PEOPLE

Clinton R. Hayes started July 1 as the next president of Southwest Virginia Community College, which is based in Cedar Bluff and serves the counties of Buchanan, Dickenson, Russell and Tazewell. Hayes comes from Kentucky’s Somerset Community College, where he was provost and senior vice president of academic affairs. He holds a doctorate in education at University of the Cumberlands and earned his bachelor’s and master’s degrees at Eastern Kentucky University. Tommy Wright, SWCC’s previous president, left in 2024 to become the Virginia Community College System’s senior vice chancellor for finance and operations. (VirginiaBusiness.com)

Out and About

1. In late May, the Roanoke Sheriff’s Office hosted a job fair for inmates at its detention center. (Photo courtesy Roanoke Sheriff’s Office)

2. Customers spoke with Liebherr product experts and viewed the company’s heavy machinery June 4 during the Liebherr Equipment Source 2025 Open House in Newport News. (Photo courtesy Liebherr USA)

3. Bowman Consulting Group founder and CEO Gary Bowman and the engineering services firm’s leadership team and employees celebrated the Reston company’s 30th anniversary by ringing the opening bell June 9. (Photo courtesy Bowman Consulting Group)

4. Sebastian Durst, CEO of Weidmüller Global, parent company of Weidmuller USA, was among dignitaries attending the June 11 grand opening event for Weidmuller USA’s 24,000-square-foot engineering and production facility in Chesterfield County. (Photo courtesy Weidmuller USA)

5. (L to R) League of Credit Unions & Affiliates President Samantha Beeler; Peoples Advantage Federal Credit Union President and CEO Amanda Habansky; and League Chair Richard Skaggs at a June 11 awards ceremony in Florida where Petersburg-based Peoples Advantage was named Credit Union of the Year among credit unions with up to $100 million in assets (Photo courtesy League of Credit Unions & Affiliates)

Heard Around Virginia, July 2025

Richmond accelerator Lighthouse Labs announced in May it’s expanding its services and rebranding itself as Lighthouse Network. Since its founding in 2012, Lighthouse has supported 149 companies, raised over $350 million in capital, helped founders raise an average of $1.8 million each and created over 1,500 jobs. The accelerator’s 11-week program, which provides founders with support from mentors, industry experts and investors, and free office space, will shift to one cohort a year instead of two as part of the change. (VirginiaBusiness.com)

LNC Partners, an Arlington County-based private equity firm investing in professional services companies, announced in May that it closed on its third fund, with $325 million in total commitments. The fund, LNC Partners III, will operate as a licensed small business investment company. “The Fund was oversubscribed and received strong support from both existing and new investors, including a diverse group of financial institutions, fund of funds, university endowments, family offices and high-net-worth individuals,” LNC Partners said. “With the closing of Fund III, LNC Partners has now managed over $1 billion of capital across six investment funds since its founding in 2012.” (Potomac Tech Wire)

Meibel, a startup founded in 2024 that’s developing tools to help companies adopt artificial intelligence technology across enterprises, is moving into its first office space in Tysons after raising $7 million from investors. CEO and co-founder Kevin McGrath said the company will start with about 10 people at a built-out 3,000-square-foot office, which has room to expand, at 7925 Jones Branch Drive. The seed round was led by San Francisco’s Mosaic General Partnership and included participation from Array Ventures, Cofounders Capital, Service Provider Capital and Denver Ventures. (DC Inno)

Nooks, a Crystal City-based provider of classified workspaces, said in June that it had raised $25 million in its first round of funding. Participants included Zigg Capital, Upper90, SAIC and Lockheed Martin. The company, which operates in Arlington County, Colorado Springs, and El Segundo, California, focuses on creating secure and affordable access to classified facilities for government agencies, contractors and entrepreneurs.
(Potomac Tech Wire)

Tysons startup pWin.ai, which developed an AI proposals writing tool, has raised $10 million in a seed funding round. MicroStrategy co-founder Sanju Bansal, members of the Blue Delta Capital Partners team and “other government contracting industry leaders” led the round, according to a June news release. The startup developed its generative AI tool in partnership with Shipley Associates, a business development training and consulting company based in Utah. pWin.ai said in a news release its product can improve win rates by up to 20%. (VirginiaBusiness.com)

Shenandoah Community Capital Fund (SCCF) and the Shenandoah Valley Technology Council (SVTC) announced in June the two organizations would merge in a partnership, joining under the SCCF banner to expand “our shared commitment to building a thriving, inclusive, and innovative entrepreneurial ecosystem, while furthering the mission to support established innovators throughout the Shenandoah Valley.” Founded in 2008 and based in Staunton, SCCF is a nonprofit regional hub for entrepreneurial innovation, dedicated to helping entrepreneurs start, sustain, and grow valley businesses. SVTC was established in 1996 and supports the regional technology ecosystem. (News release)

SpecterOps, an Alexandria-based provider of adversary-focused cybersecurity solutions with targeted insights of advanced threat actor tradecraft, announced in March it had raised a $75 million round led by global software investor Insight Partners, with participation from Ansa Capital, M12, Ballistic Ventures, Decibel and Cisco Investments. The funding will support SpecterOps’ rapid scaling of BloodHound Enterprise (BHE), a platform for comprehensively removing identity-based attack paths. (News release)

Out & About July 2025

1. Nirali Raval Trovato, senior vice president at Towne Wealth Management in , and her husband, Tony, celebrated her win during Virginia Business’ Forty Under 40 Awards May 12 at the Westin Richmond. (Photo by Matthew R.O. Brown)

2. (L to R) Sentara Health executives Becky Sawyer and Melinda Hancock accepted the award for Best Overall C-Suite at Virginia Business’ inaugural Virginia C-Suite Awards luncheon June 5 at the Jefferson Hotel. (Photo by Matthew R.O. Brown)

3. (L to R) The Breeden Co. President and CEO Timothy A. Faulkner received his award from Virginia Business Associate Publisher and Editor Richard Foster at the Virginia C-Suite Awards June 5. (Photo by Matthew R.O. Brown)

4. Virginia Business Associate Publisher Richard Foster and Sales Manager Toni McCracken congratulated Virginia Forty under 40 Awards winner Michael Gregg, assistant vice president of development at Peterson Cos., at the May 12 awards event. (Photo by Matthew R.O. Brown)

5. Christina Todd and Nancy Oliver of Richmond-based wealth management firm Cary Street Partners share a laugh during the Virginia C-Suite Awards luncheon June 5 (Photo by Matthew R.O. Brown)

Virginia 500 July 2025 Spotlight: Michael J. Lutes

PLAN FOR 10 YEARS FROM NOW: God willing, I hope to be retired and traveling the world. I’m a lifelong learner with a deep love for history and culture. I enjoy learning about different traditions and experiencing all that the world has to offer.

MOST INTERESTING PLACE I’VE TRAVELED: The Vatican. It’s truly a treasure trove of art, history and religious significance. I’ve been fortunate enough to visit twice, and each time I’m in awe. I hope to spend more time there, so I can better appreciate all that it has to offer.

ON WORK-LIFE BALANCE: I’m always thinking about what I could be doing more of, or better. But to me, that’s not a burden — I genuinely love what I do, so it often doesn’t feel like work.

DOGS OR CATS? I’m definitely a dog person. I have two Aussie doodles who bring joy, love and a whole lot of energy into our lives. They make the world a better place.

DID YOU KNOW? Before joining Bon Secours Mercy Health, Lutes served 15 years in various leadership roles at Atrium Health (now Advocate Health), a large health system based in Charlotte, North Carolina, where he oversaw five hospitals.

US stocks close at an all-time high just months after plunging on tariff fears

Summary

  • , , and Dow hit all-time highs.
  • leads the S&P 500 with a 15% gain.
  • Market steadies after trade tensions with Canada.
  • Stock recovery continues despite concerns.

closed at an all-time high, another milestone in a remarkable recovery from a springtime plunge caused by fears that the ‘s trade policies could harm the economy. The S&P 500 rose 0.5% and finished above its previous record set in February. The Nasdaq composite gained 0.5% and set its own all-time high. The Industrial Average rose 1%. President Donald Trump’s decision Friday to halt trade talks with Canada threatened to derail ‘s run to a record, but the market steadied. Nike was the biggest gainer in the S&P 500 with a gain of more than 15%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks rose in afternoon trading Friday and put Wall Street on track to close a strong week at an all-time high.

The S&P 500 rose 0.2% and is set to surpass its record reached in February. The Nasdaq composite was up less than 0.1%, within striking distance of a new all-time high. The Dow Jones Industrial Average rose 0.6%, or 261 points, to 43,647 as of 2:32 p.m. Eastern.

A record for the S&P 500 would mark a sharp turnaround from several months ago, when the key measure of Wall Street’s health fell nearly 20% from the February high on fears that President Donald Trump’s trade policy could harm the economy.

The gains on Friday were broad, with nearly every sector within the S&P 500 rising. Nike soared 14.8% for the biggest gain on the market, despite warning of a steep hit from tariffs.

The broader market has seemingly shaken off fears about the Israel-Iran war disrupting the global supply of crude oil and sending prices higher. A ceasefire between the two nations is still in place.

The price of crude oil in the U.S. is mostly unchanged on Friday. Prices have fallen back to pre-conflict levels.

Investors are also monitoring potential progress on trade conflicts between the U.S. and the world, specifically with China. The U.S. and China have signed a trade deal that will make it easier for American firms to obtain magnets and rare earth minerals from China that are critical to manufacturing and microchip production, U.S. Treasury Secretary Scott Bessent said Friday.

China’s Commerce Ministry also said that the two sides had “further confirmed the details of the framework” for their trade talks. But its statement did not explicitly mention an agreement to ensure U.S. access to rare earths, and instead said it will review and approve “eligible export applications for controlled items.”

An update on inflation Friday showed prices ticked higher in May, though the rate mostly matched economists’ projections.

Inflation remains a big concern for businesses and consumers. Trump’s on-again-off-again tariff policy has made it difficult for companies to make forecasts. It has also put more pressure on consumers worried about already stubborn inflation. A long list of businesses from carmakers to retailers have warned that higher import taxes will likely hurt their revenues and profits.

The U.S. has 10% baseline tariffs on all imported goods, along with higher rates for Chinese goods and other import taxes on steel and autos. The economy and consumers have remained somewhat resilient under those tariffs, though analysts and economists expect to see the impact grow as import taxes continue to work their way through businesses to consumers.

“While we also would have expected to already to be seeing a bit more pass through into the inflation statistics, we still expect these impacts to show up in a more meaningful way in the next few months,” said Greg Wilensky, head of U.S. fixed income and portfolio manager at Janus Henderson.

The threat of more severe tariffs continues to hang over the economy. The current pause on a round of retaliatory tariffs against a long list of nations is set to expire in July. Failure to negotiate deals or further postpone the tariffs could once again rattle investors and consumers.

The Federal Reserve is monitoring the tariff situation with a big focus on inflation. The rate of inflation has been stubbornly sitting just above the central bank’s target of 2%. In a report Friday, its preferred gauge, the personal consumption expenditures index, rose to 2.3% in May. That’s up from 2.1% the previous month.

The Fed cut interest rates twice in late 2024 following a historic series of rate hikes to cool inflation. The PCE was as high as 7.2% in 2022 while the more commonly used consumer price index hit 9.1%.

The Fed hasn’t cut rate cuts so far in 2025 over worries that tariffs could reignite inflation and hamper the economy. Economists still expect at least two rate cuts before the end of the year.

Bond yields held relatively steady. The yield on the 10-year Treasury rose to 4.28% from 4.24% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, edged up to 3.74% from late Thursday.

Stocks in Europe were mostly higher, while stocks in Asia finished mixed.

U.Va. president resigns under pressure from DOJ

SUMMARY:

  • U.Va. President Jim Ryan has resigned, he says in an email to university community
  • Ryan was under pressure to resign by the over disputes
  • Ryan says he is resigning to preserve federal research funding, university jobs, financial aid for students
  • attorney Gregory Brown, now deputy assistant attorney general, reportedly demanded Ryan’s resignation

On Friday, President James E. “Jim” Ryan wrote that he was resigning his post at the state’s flagship university due to pressure from the federal government.

“I am writing, with a very heavy heart, to let you know that I have submitted my resignation as president of the University of Virginia,” begins Ryan’s email sent to U.Va.’s community late Friday afternoon. “To make a long story short, I am inclined to fight for what I believe in, and I believe deeply in this university. But I cannot make a unilateral decision to fight the federal government in order to save my own job.”

Ryan’s sudden departure after seven years as U.Va.’s president was the culmination of mounting pressure at universities nationwide from the Trump administration to dissolve diversity, equity and inclusion (DEI) initiatives or risk losing federal funding that powers research, funds many university jobs and provides student financial aid. In March, Columbia University’s interim president resigned amid multiple federal investigations by the Trump White House.

In April, Ryan received a letter from the U.S. Department of Justice’s Civil Rights division, which is led by two U.Va. alumni, calling for the university to produce audio and video from a closed session of its board of visitors, as well as provide evidence that every division of the university and its health system has dissolved and dismantled its DEI initiatives, following a board vote in March.

Signed by U.Va. alumni Harmeet K. Dhillon, assistant attorney general for the DOJ’s civil rights division, as well as Deputy Assistant Attorney General Gregory W. Brown, the letter said that the DOJ received complaints that Ryan’s “office and the university may have failed to implement these directives and further that you have refused to produce the report on the matter.” The university was given until May 30 to respond to the letter.

The New York Times reported early Friday afternoon that Ryan had notified the school’s board of visitors he would resign from his post, and on Thursday night, the Times reported that it had learned through three sources that the Justice Department demanded Ryan resign as a condition of settling a civil rights investigation into U.Va.’s diversity, equity and inclusion initiatives.

Ryan’s email continues by saying that he was resigning to protect federal research funding, “hundreds” of university-based jobs and “hundreds of students who could lose financial aid or have their visas withheld.” He also wrote that he had already planned for the next academic year to be his last “for reasons entirely separate from this episode — including the fact that we concluded our capital campaign and have implemented nearly all of the major initiatives in our strategic plan.”

The former dean of Harvard’s Graduate School of Education and before that a professor at U.Va.’s School of Law, Ryan joined U.Va. as its president in 2018. He has been a prodigious fundraiser for the university, with U.Va. officials noting this week that the university had exceeded a $5 billion fundraising goal set with the October 2019 public launch of the “Honor the Future” campaign, raising more than $6 billion total. On Thursday, Ryan announced two anonymous $25 million donations.

While there are very important principles at play here, I would at a very practical level be fighting to keep my job for one more year while knowingly and willingly sacrificing others in this community,” Ryan’s letter continues. “If this were not so distinctly tied to me personally, I may have pursued a different path. But I could not in good conscience cause real and direct harm to my colleagues and our students in order to preserve my own position.

“It has been an honor to be your president,” the email concludes. “Thanks for the outpouring of support over the last few days and weeks. My deepest gratitude to all of the faculty, staff, students and alumni, who make this university and this community both great and good. This was an excruciatingly difficult decision, and I am heartbroken to be leaving this way.”

Hundreds of protesters came to the steps of the Rotunda Friday afternoon to protest the federal pressure that led to Ryan’s resignation, according to local news reports.

Shortly after the Times released its report, U.S. Sens. Tim Kaine and Mark Warner, both Democrats, issued the following statement: “Virginia’s economy and prosperity depend on the strength and integrity of our system. It is outrageous that officials in the Trump demanded the commonwealth’s globally recognized university remove President Ryan — a strong leader who has served U.Va. honorably and moved the university forward — over ridiculous ‘culture war’ traps.

“Decisions about U.Va.’s leadership belong solely to its Board of Visitors, in keeping with Virginia’s well-established and respected system of higher education governance. This is a mistake that hurts Virginia’s future.”

Two people familiar with the matter told the Times that the U.Va. Board of Visitors had accepted Ryan’s resignation, although the effective date is unclear. In a letter to Rector Robert D. Hardie, Ryan said his resignation could be effective immediately but “no later than” Aug. 15, according to a Times source.

Hardie, who is set to rotate off the board June 30 after serving two four-year terms, said in a statement Friday that earlier in the day “with profound sadness,” he accepted Ryan’s resignation on behalf of the board.

Ryan’s resignation also arrives amid a legal fight between Republican Gov. Glenn Youngkin and Senate Democrats over Youngkin’s eight BOV appointees who were rejected by a Senate committee in June. This week, nine Democratic state senators sued the rectors of U.Va., George Mason University and Virginia Military Institute.

In the lawsuit, the plaintiffs say that Youngkin has been trying to nullify the Senate committee vote by refusing “to recognize the rejection of those appointments by a coequal branch of government, in open defiance of the Constitution of Virginia and 50 years of tradition in the Commonwealth.”

Among the appointees rejected was former Virginia Attorney General Kenneth Cuccinelli, whom Youngkin named to U.Va.’s board to replace outspoken conservative member Bert Ellis, who stoked controversy since Youngkin appointed him in 2022.

The governor’s office released a statement late Friday: “I thank President Ryan for his service and his hard work on behalf of the University of Virginia. The Board of Visitors has my complete confidence as they swiftly appoint a strong interim steward, and undertake the national search for a transformational leader that can take Mr. Jefferson’s university into the next decade and beyond.”

Dhillon, a U.Va. law school alum who graduated in 1993, one year after Ryan’s own graduation from the law school, issued a statement Friday: “The United States Department of Justice has a zero-tolerance policy toward illegal discrimination in publicly-funded universities. We have made this clear in many ways to the nation’s most prominent institutions of higher education, including the University of Virginia.

“When university leaders lack commitment to ending illegal discrimination in hiring, admissions, and student benefits — they expose the institutions they lead to legal and financial peril. We welcome leadership changes in higher education that signal institutional commitment to our nation’s venerable federal civil rights laws.”

DOJ attorneys have Wahoo ties

Brown and Dhillon are both U.Va. graduates, and according to the Times’ Thursday story, Brown was particularly active in the investigation and made demands to university officials and representatives to remove Ryan. A Charlottesville-based defense attorney before joining the Justice Department, Brown sued the university in 2024 on behalf of a then-first year student, Matan Goldstein.

A Jewish and Israeli student, Goldstein said that he was the target of antisemitic attacks at U.Va. amid pro-Palestinian protests taking place on Grounds in reaction to the war in Gaza.

Brown claimed in the lawsuit that the university, as well as Ryan and Hardie, “thoroughly and completely failed” to “protect students from discrimination, harassment, abuse, violence and retaliation, including antisemitism.”

According to news reports in December, Goldstein settled with the university for an undisclosed amount.

Brown said via text Friday that he had no comment and directed inquiries to the DOJ’s public affairs office.

Under Ryan’s leadership, U.Va. set an individual gift record with the 2019 $120 million donation by Jaffray and Merrill Woodriff to launch the School of Data Science, and in 2023, U.Va. started construction of the $350 million Manning Institute of Biotechnology with a $100 million donation by Paul and Diane Manning.

Ryan also shepherded U.Va. through difficult times, including the 2022 slayings of three U.Va. football players by a fellow student and the spring 2020 COVID campus shutdown and resumption of remote classes. Last spring, he faced criticism for the university’s handling of a pro-Palestinian student protest on campus, after 27 students were arrested by police in riot gear who sprayed protesters with chemical irritants.

“Jim Ryan has been an extraordinary president of this great university,” Hardie said in his statement. “He has led our institution to unprecedented heights, always doing so with grace and humility. I know I speak for our students, alumni, faculty, and staff when I express my heartfelt gratitude for Jim’s tireless service to our university, especially for the ways he has guided the institution steadily and with great purpose, even in the face of major challenges like a global pandemic. U.Va. has forever been changed for the better as a result of Jim’s exceptional leadership.”

The Virginia State Senate’s Democratic Caucus sent out a statement Friday, saying that it “stands strongly in support of President Ryan and the presidents of all our public universities. We recognize their commitment to maintaining the academic integrity and educational mission that have made Virginia’s institutions world-class centers of learning.

“We call upon all boards of visitors across our 14 public colleges and universities to resist any efforts by the Trump administration to dictate how Virginia runs its own taxpayer-funded schools.”

Other Virginia Democrats, including gubernatorial nominee Abigail Spanberger, a U.Va. alum, and the Virginia Legislative Black Caucus, released statements condemning the Trump administration’s involvement in the matter.

“As governor, I will take decisive steps to ensure that all of our commonwealth’s boards of visitors are composed of individuals committed to the mission of serving and strengthening our public colleges and universities,” Spanberger said. “I will work to restore a standard of leadership that puts academic excellence, Virginia’s students, and the strength of Virginia’s public colleges and universities ahead of any political agenda.”

The VLBC statement blasted the White House and Youngkin: “Their goal is clear: to defund public education, rewrite what is taught in classrooms, restrict who gets to learn, and remove leaders who refuse to conform to their narrow ideological vision. This is not just about one university president — this is about dismantling public education as we know it.”

Mounting pressure

Ryan was under increasing public pressure over the past two months, with America First Legal, a nonprofit right-wing “answer to the ACLU” founded by Stephen Miller, the White House’s deputy chief of staff for policy and one of President Donald Trump’s closest advisers, calling for a full-scale investigation of U.Va.’s DEI practices in May.

In a 98-page missive to Dhillon dated May 21, America First Legal wrote, “the university is operating programs based on race, sex, ethnicity, national origin, and other impermissible, immutable characteristics under the pretext of ‘diversity, equity, and inclusion’ in open defiance of federal civil right law, controlling Supreme Court precedent, and executive orders issued by President Donald Trump.”

The document notes that Ryan was among hundreds of university presidents and other higher education leaders who signed an American Association of Colleges and Universities  in April condemning what it calls the Trump White House’s “unprecedented government overreach and political interference.”

Ryan was the only president of a Virginia public university who signed the petition.

Closer to home, the Jefferson Council, a group of conservative alumni who have been heavily critical of Ryan, launched a website called Reset earlier this year. On its homepage, the site says, “UVA Needs New Leadership” and describes Ryan’s tenure as “politicized and feckless leadership combined with his institutionalization of double standards has led to an unprecedented series of tragedies, scandals and government investigations that have severely damaged U.Va.’s core values and reputation.”

Bert Ellis is among the founders of the Jefferson Council, along with James A. Bacon Jr., a Virginia alumnus who runs the conservative political website Bacon’s Rebellion and was Virginia Business’ founding editor from 1986 to 2002, as well as its publisher for a time.

However, Wahoos4UVA, a group of alumni, students, faculty, staff members and other supporters of U.Va., started its own website and a letter in support of Ryan.

“Wahoos4UVA is dedicated to protecting the university from misinformation and celebrating the incredible work happening across Grounds,” the site says. “These achievements are clear indications the university is headed in the right direction under the right leadership.”

Ann Brown, a 1974 U.Va. alumna and Wahoos4UVA co-chair, called the pressure on Ryan to resign “an assault not only on U.Va. but on the very principles of academic freedom, institutional autonomy and democratic governance,” in a statement Friday. “Jim Ryan has been a singularly effective leader and has made U.Va. stronger even through times of challenge and tragedy. It is shameful for the Trump administration’s Justice Department to use unconstitutional, extortionate tactics to erase that legacy.”

Meanwhile, Roanoke attorney John Fishwick, a former U.S. attorney for the Western District of Virginia, said Friday that he thinks U.Va. has lost its leverage by reacting so quickly.

“I think it’s a mistake by the university to respond so quickly to the kind of shock-and-awe moves by DOJ, because it’s unlikely to end with just one person’s resignation. Without kind of having a complete deal with DOJ, there’s no protection … that there won’t be more repercussions for University of Virginia,” Fishwick said. 

“I think if you’re going to capitulate on one thing, then the DOJ knows you’ll capitulate on other things,” he added. “And so they’ve lost their leverage. They’ve signaled they’re not going to fight DOJ. It’s not over for the University of Virginia. You can fight, and then you can later negotiate, but when you just immediately capitulate, you’re in a very weak position.”

Virginia Business Associate Editor Beth JoJack contributed to this story.