Based on a report by the National Venture Capital Association, Network World has compiled its list of best places for tech startups and the DC area has come in at number 6. The NVCA list measures overall venture capital investment in each respective market to compile its data.
D.C. and the surrounding metro area are home to the federal government and this drives a lot of the trends in this busy market. The VC market is heavily connected to the government, specifically the department of homeland security and defense industry, according to the NVCA. (Source)