Local universities continue to be a large driver of startup creation in Illinois as university-born startup activity reaches record highs in the state, according to a new report.
Students and faculty at Illinois schools have founded 978 startups in the last five years, according to the Illinois Science & Technology Coalition's (ISTC) annual University Entrepreneurship Report. The number represents the largest volume of startup activity over any five-year period since the group started tracking startup data 10 years ago.
The nearly 1,000 startups created in the last five years is a more than 150 percent increase over the previous five-year period measured by the ISTC, when 386 companies were formed.
"Spurred by an increase in resources and support—as well as better tracking of startups by universities—we’ve seen explosive growth in entrepreneurial activity over the past decade," the report states.
Two-thirds of the companies founded in the last five years remain active, while just under a third are no longer active. More than 1 percent have been acquired, according to the report.
When it comes to funding, local university-born startups founded in the last five years have raised more than $1.2 billion. Of companies that received funding, roughly 75 percent remain in Illinois. But as startups raise more money, they're less likely to stay in-state. When looking at startups that raised $10 million or more, almost two-thirds are based outside of Illinois.
Of university startups founded in the past five years, 33 percent had at least one female founder, which is nearly twice the national average of 17 percent, according to the report. Around 37 percent of the startups had at least one foreign-born founder, which is in-line with national data on immigrant entrepreneurs.
"The critical role of immigrant entrepreneurs in new venture creation illustrates the need for a startup visa in the US, which would allow immigrant founders to stay in the country to grow their ventures," the report states.
You can read the full report here.
