Chicago's Exploding Startup Ecosystem 8.2015

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

Transcript of Chicago's Exploding Startup Ecosystem 8.2015

Chicago’s Startup EcosystemBy George DeebAugust 12, 2015

@RedRocketVC www.RedRocketVC.com 312-600-7560

Managing Partner (2010 to Date)

Chairman & CEO (2008-2010)

Founder & CEO (1999-2008)

Investment Banker (1991-1999)

BBA-Finance (1987-1991)

About George

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

Chicago in 1999

SILICONVALLEY

BOSTON

“FLYOVER CITY”

Chicago in 2014

Source: Built in Chicago 2014

Chicago in 2014

Source: Built in Chicago 2014

Chicago in 2014

Chicago in 2014

Source: Built in Chicago 2014

Creating Jobs

Source: Built in Chicago 2014

Creating Big Brands

Source: Built in Chicago 2014

Creating High Growth

Source: Built in Chicago 2014

What’s Fueling This?

Angel Networks

Venture Capitalists

Crowdfunding

Incubators

Universities

Corporations

Associations

Government

Service Providers

Chicago Angel Networks

Crowdfunding Options

Chicago VC’s

National VC’s

Chicago Incubators

Chicago Universities

Corporate Innovation

Associations/Networks

Government Support

Services Support

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!!

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

Where Illinois Ranks Nationally

Venture Capital Dollars and Deals by State, 2014Source: National Venture Capital Association/PricewaterhouseCoopers

State Deals Amount $ Per Deal Population $ Per Capita Index1 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

Chicago On The MapBut a Long Way to Go!!

$27B

$5B$4B

$.8B$1B

$.9B

$1.5B

$.8B$.8B

$1B

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