The logistics tech startup community is quickly becoming one of Chicago’s most robust.
With five unicorns and two publicly held companies, funding for Chicago’s logistics tech startups increased more than 800% from 2019 to 2021, and with so much activity in the space in recent years, World Business Chicago wants to get the growing sector together in the same room for the first time.
The economic development agency for the city and Chicago Major Lori Lightfoot announced Thursday two upcoming events to attract the logistics sector to Chicago this October:
- The inaugural Supply Chain Innovation Summit by 1871 and Accenture on Oct. 5.
- The inaugural Chicago Venture Summit Future-of-Logistics by World Business Chicago, Oct. 5–6.
The Chicago Venture Summit Future-of-Logistics event will bring together hundreds of investors and local logistics tech startup founders for a meeting that the city hopes will result in more deals getting done for the startups.
Standing at the crossroads of U.S. transportation, distribution and logistics, Chicago has provided ample opportunity for startups in the space such as Project44 to grow with its central location and diverse talent pipeline.
A recent report from World Business Chicago shows that Chicago has the second-highest concentration of workers in both transportation and technology behind the San Bernardino Valley in Southern California, and Chicago-based incubators like 1871 have helped numerous early and growth stage companies thrive.
Chicago the 'heart' of the American supply chain
Abin Kuriakose, executive vice president of innovation and venture strategy at World Business Chicago, said that three factors have led to the growth of the logistics tech industry in Chicago.
“One is the historic, generational leadership that Chicago has provided when it comes to transportation, distribution and logistics,” he told the Chicago Business Journal. “Start with the river and Lake Michigan being a shipping port, evolving into the 21st century now with our airports, and O'Hare being one of the most valuable trade ports in the country.”
Kuriakose said the city’s long history in the space has been a catalyst to the sector evolving in Chicago.
Next, Chicago’s unique cohort of homegrown companies — such as Project44 and FourKites — combined with their strong legacy foundation has led to recurring innovation in the sector, he said.
“If you check out the CEOs of those companies, they all have a background in the logistics sector, for example Matt [Elenjickal, CEO] at FourKites, was a consultant for a long time,” he added.
Finally, Kuriakose said that Chicago has a strong value proposition that has led the momentum in the space, like with Uber Freight moving its headquarters from San Francisco.
Shivani Vora with Accenture told the Chicago Business Journal that she wants the summits to showcase Chicago as a transportation and logistics hub for the country and a “tier-one supply chain city.”
With 78% of the products that are manufactured in the U.S. coming from the Midwest, she said the city’s appeal is obvious.
"Chicago is the heart of the American transportation system, and the depth of technology and logistics talent in the region is unmatched," Lior Ron, Head of Uber Freight, said in a news release announcing the summits.
Stephanie Miller with 1871 added that the summits will help put Chicago on the map even more when it comes to the supply chain community.
More on the summit
The Chicago Venture Summit series aims to become the city’s flagship venture capital and startup conference.
In May, a future food and agriculture tech innovation conference held in Fulton Market that brought together hundreds of investors and food-focused startups was the first sector-specific venture event from World Business Chicago. Some 700 registered participants attended the May conference.
Kuriakose hopes to reach that number again in October at the logistics summit and attract increased participation from venture capitals and investors outside of Illinois.
"It's going to be a really good opportunity for us to invite the world to come to Chicago to really experience why we're the capital of logistics tech," he said.
This year's event will also feature startup showcases, networking events and other opportunities for out-of-town investors to meet Chicago's top logistics tech startups, World Business Chicago said.
