Even your flip telephone - equip hippie friends must have acknowledge by now that handsome name technical school companies like Google and Amazon are expanding their bearing in Chicago . The metropolis ’s technical school aspect is breaking out as investing in local companies now routinely exceeds over a billion dollars each year , and late billion dollar exits have add up from local company like Cars.com , Grubhub and Orbitz . While Chicago still has a long way to go to catch up with Silicon Valley , here ’s why Silicon Prairie continues to grow .
Groupon and others proved tech companies can grow here
Sure , Groupon is n’t flying as high as when it turn down a $ 6 billion buyout offer from Google in 2010 ( whoops ) . But early tech - epoch success like Groupon , GrubHub , and Braintree bear witness it ’s possible to build up a global business found in Chicago .
Investors are looking beyond the coasts
The immediate payment to work up a company is unremarkably from the cryptic pockets of venture chapiter ( VC ) investor depend for a piece of the action . unluckily , many of them are base in the Bay Area or New York , and they tend to focus their investments there . Still , Chicago inauguration company had their good year ever in 2015,bringing in $ 1.7 billion in fundingheaded by tech companies like Avant , kCura and ArgonCredit . So it ’s unmistakable investor are take on Chicago more seriously and a growing issue of Chicago - base VCs are wager on homegrown job as well .
Chicago companies are seen as safer bets
Most Chicago technical school organizations pore on dish out businesses rather of build the " Next heavy affair " for consumer . It is n’t sexy or tumultuous , but investors see this practical Midwestern mentality as more reliable . However , this risk - averse approach means most of the dollars coming into the city are going towards large , safe stake like Expedia ’s $ 1.3bn acquisition of Orbitz , instead of raw startups , suppose Emile Cambry , Founder and CEO of brooder BLUE1647 .
“ It takes an investor to say ‘ alright , we ’re not going to make money for three to four years , ’ and you do n’t run to see those types of investments in Chicago , ” Cambry said .
It’s much cheaper to live here
The humbled toll of living in Chicago makes it a better option for would - be enterpriser than many major cities . For instance , the median overall snag for apartment in San Francisco is $ 3,770 and in New York it ’s $ 3,519 , compared to $ 1,989 in Chicago , fit in toRent Jungle . So employees can do more with low-pitched wages . Additionally , WalletHub place Chicagoin the middle nationally when it comes to the cost of running a business . Taken together , these low costs are appealing to newfangled startups and swelled operation likewise .
Nearby universities bring in top tech talent
A growing pond of workers in Chicago ’s tech scene attracts company athirst for natural endowment . Commercial real estate companyCBRE ranked Chicagofifth in the land for technical school talent , with around 133,000 hoi polloi working in the area in 2013 . Perhaps most appealing among those workers are top - tier engineers who prefer to stay after studying at nearby university like Northwestern , University of Chicago , and University of Illinois . A mature routine of bootcamp training programs like The Starter League also train new technical school worker each day . And CPS is also the first public school system to require calculator skill training . This could read to an even deeper , more diverse syndicate of worker in the future .
There’s an increasing amount of assistance for new businesses
Chicago is now home to dozens of accelerators , brooder , and co - working spaces . They offer assistance like office distance , mentorship , and even investment to novel party . Among them is Cambry ’s Blue 1647 , which provide training and support to aid citizenry on the South and West sides become entrepreneurs .
“ It ’s a office where people can connect and we can bring in the tools they need so they can maximise their opportunities , whether they ’re filmmakers or musicians or developers , ” Cambry say .
Local politicians show love for tech
Officials from Mayor Emanuel up to Governor Rauner see growing the technical school scene in Chicago and Illinois as a top priority . One fashion they ’re helping is by funneling tax dollar mark into business - friendly infrastructure projects . This includes the recently - opened UI Labs , a digital manufacturing hub build up on Goose Island thanks to $ 70 million clam from the Defense Department . The “ Innovation Island ” will bring together company like Boeing along with university and entrepreneurs to try and revolutionize manufacturing . Despite this pro - tech mentality , the city is also facing scrutiny for a “ cloud tax ” on streaming media company operating here .
Let’s just hope they stay in Chicago
Some Chicago companies are doing so well that immense corporations are scooping them up . Nearly 100 Chicago - area company in technical school and telecom were sold in 2015,according to Crain ’s . Coyote Logistics , Cleversafe , and Orbitz all went for over $ 1 billion . While it ’s a promising indicator , sometimes jobs are lost to other cities in the inevitable reorganization that abide by , that is until Chicago stake a title as a top technical school name and address .
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Mike Ewingis a freelance diarist and tech enthusiast who is full of million - buck idea . For more rants / investment funds opportunities follow at@miketewing .
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