Chicago Startup Ecosystem
Major Midwest hub with strong logistics, fintech, and enterprise software focus. Central location with strong corporate presence.
Ecosystem Overview
💰 Funding
$4B+ in total funding, with strong access to VCs and corporate investors.
👥 Talent
150K+ tech workers and access to UChicago and Northwestern talent.
🏢 Infrastructure
20 accelerators, 40 co-working spaces, and growing support networks.
Key Strengths
Key Industries
Cost of Living
Top Accelerators
Co-working Spaces
Top Funding Sources
Lightbank
Early-stage VC firm focused on Chicago
Hyde Park Angels
Angel investment group in Chicago
Pritzker Group Venture Capital
Early-stage VC firm in Chicago
Notable Companies
Frequently Asked Questions
Why is Chicago a good city for startups?
Chicago offers a strong startup ecosystem with lower costs than major tech hubs, central location, strong logistics and fintech focus, access to major corporations, and a growing tech scene. The city has $4B+ in funding, 10+ unicorns, and is particularly strong in logistics, fintech, and enterprise software.
What are the top accelerators in Chicago?
Top accelerators include Techstars Chicago, 1871, and mHUB (hardware focus). Techstars Chicago offers $120K for 6% equity. 1871 is one of the largest co-working spaces and startup hubs in the Midwest, providing extensive resources and community.
How much does it cost to start a startup in Chicago?
Chicago has a cost of living index of 120 (20% above national average), making it significantly more affordable than SF/NY. Average rent for a 1-bedroom is around $1,800/month, allowing startups to extend their runway while accessing strong talent and resources.
What industries are strongest in Chicago?
Chicago is particularly strong in logistics, fintech, enterprise software, and food tech. The city's central location and major transportation hub make it ideal for logistics startups. Strong financial services presence supports fintech innovation.
Is Chicago good for fintech startups?
Yes, Chicago has a strong fintech ecosystem with proximity to major financial institutions, trading and derivatives expertise, and growing fintech presence. The city is home to companies like Braintree (acquired by PayPal) and has a strong financial services talent pool.
What VCs are active in Chicago?
Active VCs include Lightbank, Pritzker Group Venture Capital, and Hyde Park Venture Partners. Many national VCs also invest in Chicago startups, recognizing the value proposition of lower costs, central location, and strong talent.
Compare with Other Ecosystems
🗽 New York
Strong fintech hub with more capital. Higher costs but more opportunities.
Compare →🍑 Atlanta
Similar logistics focus. Lower costs and growing tech scene.
Compare →🚗 Detroit
Similar Midwest location. Lower costs and emerging tech scene.
Compare →🤠 Austin
Similar size and costs. Strong B2B SaaS focus.
Compare →