The level of VC activity in Chicago in 2021 reached levels likely never seen in the city's tech economy.
Through the first three quarters of 2021, Chicago tech firms raised $5.5 billion in venture funding, which was nearly double what was raised in all of 2020. Last year's total of $2.8 billion raised was already the most venture funding in Chicago since Pitchbook began tracking VC statistics in 2006.
This year's total funding figures are still being crunched, but they are sure to put Chicago north of $6 billion raised in 2021, a number that perhaps seemed unreachable just a few years ago. In 2016, Chicago startups raised just $1.3 billion in venture funding.
2021's total was fueled by an increase in $100 million "mega rounds" of funding, which propelled several startups into unicorn territory this year. Chicago minted at least a dozen new unicorn startups valued at $1 billion or more this year.
Here are the 14 biggest VC deals in Chicago this year, all at $100 million or more, that helped boost Chicago's funding total to record heights.
Nature's Fynd: $350M
This year Nature's Fynd, an alternative protein startup that makes meatless breakfast patties and dairy-free cream cheese, raised $350 million in a Series C round, bringing its total raised to over half a billion dollars. Its investors include big names like Bill Gates' Breakthrough Energy Ventures, Al Gore's Generation Investment Management, and SoftBank. The round valued the company at more than $1 billion. In October, the Chicago startup announced plans to open a 200,000-square-foot R&D and innovation center at Marina Crossings on Chicago's South Side.
ActiveCampaign: $240M
Chicago marketing-tech firm ActiveCampaign raised a $240 million Series C round this year at a valuation north of $3 billion. The deal was led by Tiger Global, along with Dragoneer, Susquehanna Growth Equity and Silversmith Capital Partners. While founded in 2003, ActiveCampaign's hyper-growth began in 2016. The firm has just 15 employees at the start of that year, and today has grown to over 1,000.
Project44: $202M
Chicago logistics-tech startup Project44 landed $202 million this year at a $1.2 billion valuation. The company, which provides software to shippers to help them track their shipments and communicate with the supply chain in real time, has now raised $442.5 million since it launched in 2014. Its investors include Goldman Sachs, Emergence Capital, Partners, Sapphire, 8VC and Chicago Ventures.
ShipBob: $200M
ShipBob, a Chicago logistics startup that helps small- and medium-sized e-commerce companies ship products with Amazon-like speeds, raised $200 million this year at a valuation above $1 billion. Its investors include SoftBank, Menlo Ventures, Hyde Park Venture Partners and Hyde Park Angels. Founded in 2014, the same year it went through Y Combinator, ShipBob has grown to over 700 employees.
Clearcover: $200M
Chicago insurance-tech startup Clearcover snagged $200 million this year at a valuation reportedly overt $1 billion, according to Reuters. Clearcover has built a platform that uses artificial intelligence to make custom car coverage recommendations to customers at a cheaper rate than its competitors. Founded in 2016, the startup has raised $329 million in total funding to date. Its investors include Eldridge, American Family Ventures, Cox Enterprises, OMERS Ventures and Hyde Park Angels.
G2: $157M
G2, a B2B software marketplace and review platform, raised $157 million this year at a $1.1 billion valuation. Founded in 2012, G2 has raised more than $250 million in total funding from Accel, Emergence, IVP and others. The startup's platform allows users to purchase and review business software. The firm is led by Godard Abel, a serial entrepreneur who founded Steelbrick, which he sold to Salesforce for $360 million, as well as BigMachines, which was acquired by Oracle for more than $400 million.
M1 Finance: $150M
Chicago fintech startup M1 Finance raised $150 million this year at a $1.5 billion valuation. Founded in 2015, M1 has built a no-fee investing app that offers users an automated brokerage, portfolio lines of credit and digital banking. The startup has now raised more than $320 million in funding from Softbank, Coatue, Left Lane Capital, Clocktower Technology Ventures, Jump Capital and Chicago Ventures. M1 also bought a small bank in Minnesota this year.
Enfusion: $150M
Enfusion, a fintech company that makes investment management software, raised $150 million this year at a $1.5 billion valuation. The investment was led by ICONIQ Growth, the tech-focused investment arm of San Francisco-based ICONIQ Capital. Other Enfusion backers include FTV Capital and Hillhouse Capital. Originally founded in 1997 as an advisory firm to hedge funds, Enfusion launched its software business in 2006. Its customers today include hedge funds, family offices and other asset managers.
Copado: $140M
Chicago software firm Copado raised $140 million this year at a $1.2 billion valuation. The company, founded in 2013 makes DevOps software built on the Salesforce platform, helping customers accelerate the deployment of new products on Salesforce. Its investors include Insight Partners, SoftBank, Declaration Partners, Salesforce Ventures and IBM Ventures. Copado has now raised $257 million in funding to date.
LogicGate: $113M
LogicGate, a Chicago startup that sells risk and compliance software to businesses, raised $113 million this year, bringing its total funding to $156 million since it launched in 2015. Its investors include PSG and Greenspring Associates. LogicGate's software helps firms identify, assess and monitor business risks, and it counts SoFi, Zurich Insurance and Memorial Hermann Health among its customers.
Cameo: $100M
Chicago's Cameo raised $100 million in new funding this year at a valuation of more than $1 billion. The round was led by e.ventures and included backing from GV (the VC firm formerly known as Google Ventures), Amazon’s Alexa Fund, UTA Ventures, SoftBank, Valor Equity Partners, Lightspeed and Kleiner Perkins. The celebrity shoutout app has had a busy year, making its first-ever acquisition after scooping up L.A. startup Represent, which sells t-shirts and other merchandise from celebrities. Cameo said it envisions letting fans purchase gift bundles, for example, which could include both a personalized video message and custom merchandise from celebrities. In September, Cameo launched a video chat offering that lets fans host one-on-one calls with celebrities.
Halo Investing: $100M
Chicago fintech startup Halo Investing landed $100 million this year in a round led by Owl Capital. Other backers included Abu Dhabi Catalyst Partners, Allianz Life Ventures and William Blair. Its investing platform allows financial advisors to add structured notes, annuities, and buffered ETFs to their client portfolios, bridging the risk gap between stocks and bonds to protect your portfolio around market volatility.
FourKites: $100M
FourKites, a Chicago-based maker of real-time supply chain software, raised $100 million this year led by private equity firm Thomas H. Lee Partners, and included backing from Zebra Technologies, Volvo Group Venture Capital, Qualcomm Ventures, August Capital, CEAS Investments, Hyde Park Angels, Hyde Park Venture Partners and Bain Capital. FourKites, founded in 2014, has now raised more than $200 million. The startup makes software that helps companies predict when shipments will arrive at scheduled stops. It can also monitor load temperatures and analyze a company’s supply chain data, helping businesses improve on-time delivery and minimize product loss.
Amount: $100M
Chicago fintech startup Amount raised $100 million this year at a $1 billion valuation. The deal was led by WestCap, with backing from Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments. Founded in 2018 originally as the tech arm of Avant, a digital consumer lending company, Amount has built tech-powered lending products for banks, who wanted to significantly enhance their digital capabilities. Last year, Amount announced that it officially spun off of Avant. To date, the startup has raised $243 million.
