United States
Chicago
"In Chicago, our journey towards establishing the leading ecosystem for founders never ceases. With an up and coming Quantum hub, a highly skilled workforce, a dynamic VC landscape, and growing funding opportunities, Chicago offers a supportive environment that makes it an attractive destination for entrepreneurs of all backgrounds and stages."
Highlights
Chicago has a vibrant history as an industrial hub and ranks second in the nation for concentration of Fortune 500 companies, with 31 businesses on the list calling the city home in 2023.
Chicago founders can access a strong network of startup accelerators and incubators, including Techstars Chicago and the Chicago Innovation Exchange. Innovation hub 1871 hosts the AI Innovation Lab in June to spark industry innovation and networking. The $225 million Hyde Park Labs facility opened in July 2023 and announced that it would launch a Life Sciences incubator. In November, The Illinois Institute of Technology announced it leased research space in Chicago’s Fulton Market district that will become a dedicated innovation hub. In October, The University of Chicago’s Polsky Center for Entrepreneurship and Innovation announced the launch of Resurgence, a Cleantech accelerator powered by Deep Tech Ventures.
Chicago's startup growth is driven by its abundance of top-tier universities and research institutions, including Northwestern University, The University of Chicago, and the Illinois Institute of Technology. The UChicago Startup Investment Program is a $25 million fund investing in startups led by UChicago faculty, students, staff, and alumni. At City Colleges, high school and first-year college students can enroll in the Digital Scholars summer pipeline program, connecting students to startups.
Insurtech startup Kin Insurance raised $443.2 million over 11 rounds, including a September 2023 Series D. Ecommerce app Foxtrot raised $185.4 million over eight rounds, including one in February 2023. Online marketplace Provi raised $124.9 million over seven rounds, including an August 2023 Series C.
Ecosystem by the Numbers
Sub-Sector Strengths
Fintech
The University of Chicago offers an eight-week professional education Fintech course focused on discovering the impact of Fintech from multiple perspectives—investor, corporate, and consumer—and learning about the regulations governing the sub-sector. In October 2023, Chicago-based Fintech Statis Fund partnered with investment platform Quantbase to launch an AI-assisted trading algorithm. The 2024 U.S. Fintech Symposium was held in June. Payment platform Mozaic raised $20 million in a November 2023 Series A round.
AI, Big Data & Analytics
Data Science Institute and The University of Chicago’s Polsky Center for Entrepreneurship and Innovation’s Transform accelerator provides support to early-stage data science ventures. The Big Data and Analytics Roundtable is a monthly meeting of members of the Chicago Booth community to promote applications of big data and analytics across industries. CDAO Chicago will bring data and analytics leaders from the midwest together in August. AI infrastructure platform Pixis raised $209 million over five rounds, most recently with a September 2023 Series C.
Life Sciences
The Chicago area is home to 90,000 Life Sciences workers, the third highest in the nation. Research parks including Chicago Technology Park, University Technology Park at IIT, and Illinois Science + Technology Park bring together research and industry. In October, the Chicago Biomedical Consortium received $13.5 million in funding dedicated to research, seed funding, and venture capital. The Chicago Life Sciences Summit was held in January. Drug discovery platform Pathos raised $20 million in March 2023.
Reasons to Move Your Startup to Chicago
Large, Diverse Workforce
Chicago is a top 10 tech talent hub, according to real estate firm CBRE. In October, the Illinois Department of Innovation & Technology launched a paid trainee program to build a pipeline of tech talent to meet the growing demand for skilled professionals and diversify the agency's workforce. Chicago is the top metro for women founders, with more than one third of new venture-backed startups having at least one woman co-founder.
Dedicated Support
Chicago’s support for entrepreneurs includes the Office of Minority Economic Empowerment, which works to create an equitable and inclusive business environment for Black entrepreneurs. In August, Chicago tech nonprofit P33 received $3 million from the federal Minority Business Development Agency to grow its TechRise Expansion Initiative supporting underserved founders as they scale. The ecosystem is home to numerous incubators and accelerators.
Logistics Infrastructure
Chicago is a leading international cargo hub. Its central location makes Chicago an attractive option for startups looking to expand throughout the U.S. Its extensive network of railroads, major highways, two bustling airports, access to maritime ports, and intercontinental trade routes allow easy reach to customers and partners around the world.
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