Just read off CB Insights where NYC did $4.5 Billion in VC funding last year. That's awesome for them. They have established an ecosystem that didn't exist before.
Chicago shouldn't look and be mad that we only did $1 Billion in funding last year. Instead, look at the growth in funding. It's getting logrithmic.
What we need to be doing is talking about the great opportunities here. As I blogged earlier, weekly I am getting emails from friends about how to plug their kids into the Chicago startup ecosystem. These aren't all city people that are close to the action. They are suburban people that didn't know what a startup was several years ago. That's an excellent sign.
Chicago has companies that are raising their second and third tranches of capital. They are growing. They are quiet companies that aren't in your face. Kcura raising $125M is a big deal.
Really groundbreaking companies are getting started here. They are finding seed money. They will find VC money.
Instead of being typcial Chicago with a chip on our shoulder as the second city-we should congratulate every other city that improves like we are.
What it means is more risk capital is being deployed. That will encourage even more capital to go to startups. "A rising tide lifts all boats."
One thing I am learning, fund of funds (even Midwestern fund of funds) don't believe in what's happening here. Midwestern capital is going to have to build Midwestern entrepreneurial startup communities.
Talk to your friends. Tell them what's going on. Create buzz and excitement. It's infectuous, and the word of mouth that you create will go a long way to building the overall community. It's a long game. We will win.
