Chicago startups raise $45M in December to boost hiring efforts in 2017

Written by Andreas Rekdal
Published on Jan. 03, 2017
Chicago startups raise $45M in December to boost hiring efforts in 2017

December was a slow month for startup funding, with Chicago companies landing a total of just under $45 million in collective funding. Two of the month’s biggest rounds surpassed the $10 million mark, and six companies raised more than $1 million, including ParqEx, whose $1.27 million seed round landed it just shy of this month’s top five fundings. Here are the companies that did make the list, each of whom helped round out a year's worth of Chicago tech fundings on a solid note.



5. Provi (formerly Tiz), $1.35M, Dec. 21

Investors: Hyde Park Angels, Ludow Ventures and Hyde Park Venture Partners

Bio: Founded by Drizly veteran Taylor Katzman, Provi connects bars and restaurants with alcohol distributors, streamlining the process of keeping the bar stocked. The company also tracks alcohol sales at different locations, helping restaurant groups optimize their selections.

News: Launched in June, the company has already brought 115 establishments in Chicago and Milwaukee onto its platform, according to Chicago Inno. The company will spend much of the funding to expand its sales team.




4. LogicGate, $1.9M, Dec. 1

Investors: Chicago Ventures, OCA Ventures, MATH Venture Partners, Techstars Ventures, Sandalphon Capital, Firestarter Fund, Hyde Park Venture Partners and Connetic Ventures

Bio: LogicGate lets companies build their own compliance software with a drag-and-drop tool. The idea was born out of the co-founders’ experience as consultants in the compliance space, where they noticed that many companies were relying on a hodgepodge of spreadsheets, Post-it notes and emails to manage critical processes.

News: The Techstars Chicago 2016 graduate said in a statement that it will use the funding to “grow sales and marketing and accelerate expansion of the LogicGate platform.”




3. G2 Crowd, $4.3M, Dec. 15

Investors: Pritzker Group Venture Capital, Chicago Ventures and Hyde Park Venture Partners

Bio: G2 Crowd is the maker of an online review platform for B2B software. By placing reviews for competing solutions in one place, the company helps businesses pick the best solution for the problem they’re looking to solve.

News: According to Communications Director Adam Beeson, G2 Crowd has more than doubled its headcount in 2016. The funding will be used to continue that expansion into 2017.




2. Kenna Security, $15M, Dec. 7

Investors: PeakSpan Capital, OurCrowd, U.S. Venture Partners, Costanoa Venture Capital and Hyde Park Angels

Bio: Kenna Security’s platform uses advanced data analytics to help companies prioritize the cybersecurity threats they face. It does so by combining the company’s internal vulnerability data with external data on available exploits and actual security breaches.

News: When the funding round was announced, CTO Ed Bellis said Kenna plans to expand its Chicago-based technology team as quickly as possible.




1., $20M, Dec. 8

Investors: eEquity

Bio: is an online marketplace for pre-owned clothing for women, men and children. With a 360,000-square-foot fulfillment center in Bolingbrook, IL, the company lets consumers sign up for email alerts for new inventory that fits their brand, style and size requirements.

News: Having grown 180 percent year-over-year since launch, plans to use its most recent round of funding to boost its marketing efforts and increase efficiency at its fulfillment center.



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