California native Daniela Bolzmann grew up on the sunny beaches of Orange County. But when she created her tech startup WeDeliver with cofounder Jimmy Kirk in 2012, she didn't go to technology meccas San Francisco, New York, Seattle or Austin. Instead she came to Chicago.
For Bolzmann, the city's appeal was its "Chicagoness" – a kind of unique fraternal spirit of entrepreneurship, "The people in Chicago really want to help one another. There are a number of local businesses that took a risk on us. Bang Bang Pie is one example of a local business we worked with that has taken chances on more than one startup."
But Bolzmann was drawn here for other reasons as well. She sees the lower cost of living and the thriving cultural scene as big magnets for coastal entrepreneurs, "The quality of life and opportunity that Chicago offers is unmatched. Excellent public transportation, affordable rent, beautiful neighborhoods, thriving tech community, and loads of entertainment all make this city one of a kind."
In Bolzmann's experience, a lower cost of living translates into more affordable employment for businesses, "We could hire incredible talent at a lower rate. If you're going to hire a web developer in San Francisco, you're looking at six figures. Here in Chicago I think more developers are willing to take on a lower salary or a percentage of the business."
Chicago's tech market does, however, present some difficult challenges. VCs tend to be much more conservative here than their counterparts on the West Coast. Bolzmann explains that she had to manage growth expectations, and operate with significantly less funding than a business in Silicone Valley for instance, "We learned that the Chicago investment community is one that is risk averse and very focused on turning profit as quickly as possible, which is counter to the mindset in the Valley – being focused on growth at all costs."
Bolzmann thinks that gun-shy investors are only detrimental to certain kinds of companies, "If you have a business that is very capital intensive, or you're going to need to raise lots of money, I wouldn't say Chicago is the best place for that." However, she feels that organizations with larger margins and that are less VC dependent would thrive here, "I would look at subscription model based businesses with healthy MRR and product based companies like Gramavox – who were able to get started using crowdfunding. SaaS type companies are good examples as well."
When Daniela Bolzmann moved to Chicago, she intended to come here for one year. It's been three. In 2014 she sold WeDeliver to competitor Deliv. Rather than move back to the beach, she and fellow California transplant Chef Mark Avila decided to stay and contribute to the startup ecosystem with their new company ATE 3 FOUR – an underground experimental supper club, which has already sold out its first dinners. Ultimately Chicago feels like home for Bolzmann. Like many entrepreneurs, she created her business here because, beyond being an excellent city for commerce, Chicago is simply a great place to live.
