1. Chicago’s Startup Ecosystem
By George Deeb
August 12, 2015
@RedRocketVC www.RedRocketVC.com 312-600-7560

2. Managing Partner (2010 to Date)
Chairman & CEO (2008-2010)
Founder & CEO (1999-2008)
Investment Banker (1991-1999)
BBA-Finance (1987-1991)
About George

3. About Red Rocket
Growth strategy, team and financing for early-stage companies
Over 500 companies mentored or consulted to date
Authors of “101 Startup Lessons” blog—Over 500,000 reads
Contributor to Forbes, Entrepreneur, WSJ, TNW, Alley Watch, etc.
Mentors for TechStars, Founder Institute and other startups
Investors in FireStarter Fund—17 Portfolio Companies

4. Chicago in 1999
SILICON
VALLEY
BOSTON
“FLYOVER CITY”

5. Chicago in 2014
Source: Built in Chicago 2014

6. Chicago in 2014
Source: Built in Chicago 2014

7. Chicago in 2014

8. Chicago in 2014
Source: Built in Chicago 2014

9. Creating Jobs
Source: Built in Chicago 2014

10. Creating Big Brands
Source: Built in Chicago 2014

11. Creating High Growth
Source: Built in Chicago 2014

12. What’s Fueling This?
Angel Networks
Venture Capitalists
Crowdfunding
Incubators
Universities
Corporations
Associations
Government
Service Providers

13. Chicago Angel Networks

14. Crowdfunding Options

15. Chicago VC’s

16. National VC’s

17. Chicago Incubators

18. Chicago Universities

19. Corporate Innovation

20. Associations/Networks

21. Government Support

22. Services Support

23. Chicago Strengths
Affordable cost of living—half of the coasts!!
A community that really want to help you
A large population base for recruiting
Leaders committed to seeing ecosystem succeed
A growing capital base of angels and VC’s
World-class universities pushing entrepreneurship
A growing base of serial entrepreneur mentors
City and state level support of ecosystem
A new startup launching each day in the city!!

24. Chicago Weaknesses
Conservative investors—high “proof” point
Later stage investors—hard to get seed capital
Model-driven investors—need solid economics
A bias to local industries—heavy B2B focus
Not well-known on the national stage
Geographic location “an island” vs. coasts
A shortage of tech talent
Need big & small companies to collaborate better
Cheaper to launch means a lot more clutter

25. Where Illinois Ranks Nationally
Venture Capital Dollars and Deals by State, 2014
Source: National Venture Capital Association/PricewaterhouseCoopers
State Deals Amount $ Per Deal Population $ Per Capita Index
1 California 1,804 27,151,513,000$ 15,050,728$ 37,253,956 729$ 1.00
2 Massachusetts 396 4,678,599,700$ 11,814,646$ 6,547,629 715$ 0.98
3 New York 434 4,263,917,000$ 9,824,694$ 19,378,102 220$ 0.30
4 Texas 187 1,506,448,000$ 8,055,872$ 25,145,561 60$ 0.08
5 Washington 113 1,246,773,300$ 11,033,392$ 6,724,540 185$ 0.25
6 Illinois 99 1,069,269,700$ 10,800,704$ 12,830,632 83$ 0.11
7 Florida 45 862,460,900$ 19,165,798$ 18,801,310 46$ 0.06
8 Utah 43 800,996,600$ 18,627,828$ 2,763,885 290$ 0.40
9 Colorado 86 793,054,800$ 9,221,567$ 5,029,196 158$ 0.22
10 Pennsylvania 189 774,665,400$ 4,098,759$ 12,702,379 61$ 0.08
20142014

26. Chicago On The Map
But a Long Way to Go!!
$27B
$5B
$4B
$.8B$1B
$.9B
$1.5B
$.8B
$.8B
$1B

27. Further Reading
www.RedRocketVC.com
• Chicago’s Startup Ecosystem on Fire
• Chicago’s Venture Capital Firms & Angel Networks
• Chicago’s Top Startups
• Chicago’s Top Startup Lawyers
• Chicago’s Top Design & Development Shops
• Chicago Top Startup Incubators & Shared Spaces
• Chicago or New York for Startups?
@RedRocketVC
@GeorgeDeeb