Chicago startup hub 1871 is acquiring accelerator program Catapult, the latest local startup organization to join the 1871 family.
1871 is acquiring Catapult’s intellectual property and programs, and plans to integrate them into its own offerings, said 1871 CEO Betsy Ziegler. Ziegler wouldn’t disclose the exact terms of the pending deal but said 1871 is paying a “very tiny price” for Catapult.
As part of the acquisition, 1871 is changing the name of the “Grow” stage of its PYROS program to Catapult. The “Grow” stage and its offerings are similar to Catapult’s program in that it is selective and not available to every 1871 member, unlike the rest of the PYROS program.
Startups accepted into the “Grow” stage will be peer-selected, and have to have demonstrated a clear business, traction, product-market fit and already be generating revenue or raised funding. Currently, nine startups are in the program, Ziegler said.
“It’s very selective to get into already,” Ziegler said. “They’re on their way to being able to scale.”
Catapult, which has about 60 alumni, has mentored notable Chicago startups, such as Visibly, Jiobit and Threeflow. Catapult, founded in 2012, has a physical space at 227 W. Monroe St., but the organization is working to end the lease and current Catapult companies can transfer over to 1871, Ziegler said.
“Several of the existing Catapult members and alumni were born at 1871,” Ziegler said. “They were born here. They went to Catapult to grow up, and now there’s this sort of coming back.”
This isn’t the first time 1871 has acquired a local startup and technology organization. At the beginning of 2020, 1871 acquired the Illinois Technology Association. Since the deal, ITA’s programming and events have been rolled into 1871’s offerings.
ITA approached Ziegler about an acquisition on Oct. 22, 2019, and oddly enough, exactly one year later Catapult also approached her about a deal on Oct. 22, Ziegler said.
“I’ve got Oct. 22 held on my calendar now as [a day to] stay open to interesting ideas,” she added.
Ziegler said that the likelihood of 1871 continuing its streak of acquiring other tech and startup hubs, accelerators and organizations around town is “very high.”
“It’s about continuing to have the resources available to support all these companies as they’re growing and scaling in Chicago,” she said.
