In a move that will consolidate two Chicago tech entities aimed at strengthening and supporting the city’s tech economy, startup incubator 1871 is acquiring the Illinois Technology Association, a 15-year-old organization that focuses on growing the local tech community.
The two organizations have long operated in a similar space, providing tech-focused events, programs and resources to Chicagoans. And with the acquisition, the goal is provide more clarity and cohesion on where to find these resources, said 1871 CEO Betsy Ziegler in an interview with Chicago Inno.
Ziegler said 1871 and the ITA will consolidate programs and events that overlap, but aim to keep most of the ITA’s pillar offerings, such as its Women In Tech Leadership Conference.
“I am very excited for a lot of reasons,” Ziegler said. “Our two organizations complement one another. We don’t compete.”
Because the two organizations are classified as nonprofits, no cash was exchanged in the deal, Ziegler said, adding that 1871 is only acquiring the principal assets and programs of the ITA. Over the coming months, the ITA name and branding will disappear as it becomes integrated into 1871.
Julia Kanouse, the former CEO of the ITA who stepped down in December to join global IT association ISACA, and Jeremie Bacon, the ITA’s chairman, originally approached 1871 in October with the idea to merge.
Up until now, the ITA was expected to replace Kanouse, but now won’t as 1871 already has a full leadership team.
As part of the acquisition, both Kanouse and Bacon are joining 1871’s board of directors, and ITA’s Lindsey Perez is joining 1871 as its vice president of operations. The remaining six ITA employees are also all joining 1871, Ziegler said.
1871, which was ranked the No. 1 private business incubator in the world, is now home to about 450 tech startups with over 1,500 members. The organization, founded in 2012, provides 350 mentors to its founders, as well as access to more than 100 partnering corporations, universities, venture funds and other entities. 1871 says its 650 alumni companies have created more than 11,000 jobs and raised $1.5 billion in follow-on capital.
“This [acquisition] is a transformational opportunity,” Ziegler said. “We strongly believe in the power of combining two great organizations to expand our collective reach and relevance in Chicago, Illinois and across the Midwest.”
