Chicago Is for Entrepreneurs. Here’s Why.
Can we just get this out of the way? Silicon Valley is not the final frontier for startups.
And if Inc.’s Surge Cities list is any indication, entrepreneurs have plenty other (more affordable) options when considering where to start their business. Scroll all the way down to #36, and you’ll find Chicago on this list, sitting well below Midwest counterparts Milwaukee, Columbus, St. Louis, and Indianapolis.
But we argue that Chicago got slighted. The truth is if you’re looking for the next great entrepreneurial hub, Chicago is the place to be. Here’s why.
Chicago’s Funding Ecosystem Is Surprisingly Strong
While Chicago may not have been on investors’ radars 10 years ago, it’s now a formidable player in the startup space. Don’t take our word for it — look at the numbers:
- Chicago raised $1.8 billion in venture capital in 2018 — earning it 9th place of all top-funded cities in the nation.
- The startup growth rate in Illinois is 68.85 percent.
- 45% of exiting Chicago startups were valued at 10 times what was invested.
Though Chicago’s business culture welcomes all stripes — no single industry dominates more than 12 percent of the workforce — it’s a particularly fertile city for entrepreneurs in the food and CPG industry, logistics and supply chain innovation, and fintech.
In fact, Chicago represents more than 20,000 financial institutions, and more than 6 percent of the Chicago workforce is part of the financial ecosystem.
Chicago Churns Out Talent
It’s no secret that some of the best minds in the country are in Chicago, thanks in large part to its record-setting STEM graduates.
According to the Illinois Science & Technology Coalition, Illinois produced 40,400 STEM degrees in 2016, outpacing the national average by 4.1 percent. And get this — 9.9 percent of all US computer science degrees are produced in Illinois, despite only awarding 4.4 percent of the nation’s total degrees.
Another talent contributor? Chicago has the top two MBA programs in the world: Northwestern University’s Kellogg School of Management and The University of Chicago’s Booth School of Business.
Between the CS degrees and the MBAs, Chicago’s talent pool is brimming.
9.9% of all US computer science degrees are produced in Illinois.
Chicago Is Home to More & More Tech Superstars
The internet is really the great equalizer when it comes to tech empires. As long as you have good ideas and smart people to execute those plans, you can build a startup anywhere.
But Chicago is headquarters for some real movers in the startup space, including:
- Groupon
- G2 Crowd
- Cameo
- FourKites
- project44
- Shipbob
- Avant
- Abode
- Tempus
- Uptake
- Snapsheet
- Sprout
- Grubhub
Plus, some familiar names are setting up shop in Chicago: Salesforce, Facebook, and Google.
For a Big City, Chicago Is Pretty Affordable
If you’re still not convinced, let’s talk dollars and cents.
It costs 120.7 percent more to live in San Jose, California than to live in Chicago. Whereas the median cost of a home in Chicago is about $228,400, in Silicon Valley, you’ll pay about $935,000. A salary of $135,000 in Chicago would need to be at least $297,963 in San Jose to be comparable, comfort-wise.
As for the East Coast, Chicago is 43.7 percent more affordable than New York City.
All the big city networking, funding, and market opportunities without the drain on your personal bank account? Yeah. It’s pretty ideal.
A $135,000 salary in Chicago would need to be at least $297,963 in San Jose.
Final Thoughts
If you want a city that will give you ready access to funding, talent, tech hubs, and affordable living, Chicago is for you. But be warned: we still expect you to bring that Midwestern grit. And to be polite.
