The mood at the Chicago Venture Summit, an annual gathering of investors and startup founders that aims to catalyze deals and grow Chicago's tech ecosystem, is always upbeat. But this year, Chicago's tech leaders are riding especially high as the city is experiencing an unprecedented amount of growth and venture capital activity as at least a dozen new startups hit $1 billion+ valuations this year.
In total, Chicago startups have raised a combined $5 billion in venture funding this year, shattering 2020's record of $2.8 billion raised with three months left to go.
"We’re living the absolute best year in Chicago tech," Mark Tebbe, the executive chairman of ChicagoNext, told the attendees Wednesday morning.
The Covid-19 pandemic cancelled 2020's Chicago Venture Summit, and it was scheduled and rescheduled four different times before settling on the late-September date.
In the past the event has featured speakers like Uber co-founder Travis Kalanick, former McDonald's CEO and current Cleveland Avenue investor Don Thompson, and high-profile startup investors like Ben Horowitz and Peter Thiel.
Now taking place both in-person and via live stream, organizers understood the importance of once again bringing Chicago's tech community, and outside investors, together to highlight Chicago's growing tech scene.
"We need the face-to-face time," Tebbe said in an interview with Chicago Inno. "This event is the premiere VC experience for anyone that's investing in Chicago."
This was the fifth Chicago Venture Summit since the program started in 2014. Around 160 investment firms participated in this year's event, more than half of which are based outside of Chicago. The goal is to spotlight the growth of Chicago's startup scene and continue the momentum the city's tech community is already seeing.
"In 2014 we had a lot of dreams and aspirations," Tebbe said. "Now we have a lot of companies that have made it."
This year's Chicago Venture Summit featured startup spotlights and conversations with several local tech leaders, including featuring emerging funds like Chingona Ventures, LongJump, and Fifth Star Funds, three local VC funds that aims to invest in underrepresented founders.
Chicago has developed a reputation for punching below its weight, Tebbe acknowledged, in terms of startup activity relative to population. But that perception is starting to change as the city's tech ecosystem continues to see an influx of VC dollars flow in and tech firms like Vivid Seats, Sprout Social and Fast Radius go public.
"[Outsiders] just do not know that these things are happening in Chicago," said Abin Kuriakose, executive VP of innovation and venture strategy at World Business Chicago. "In Chicago we've always known it was a national hub."
