Enjoyed reading this post, thank you. Very insightful.
I've often inquired about Chicago's entrepreneurial ecosystem. Went to school in Indiana, visited Chicago many times to play soccer with the school and to visit both the CBOE and CME as the President of the ISU Investment Club. My elder brother lives there, he's an AA commercial pilot based out of O'hare airport.
I've studied entrepreneurial/innovation ecosystems for years, all over the world. Also studied and read all kinds of material, I'm familiar with Feld's entrepreneur-led maxim, Isenberg, Richard Florida's work, Mazzucato as well as her critics, Saxenian, and studied many government initiatives all over the world.
Chicago reminds me of many European 'ecosystems', where politics and bureaucracy gets in the way, and where merit is not rewarded. Efforts become photo ops for political purposes and appearance.
Excellent piece which is totally outside my lane, but your explanations made perfect sense on a macro level. Unfortunately.
The smart people, businesses & money are leaving Chicago (and Illinois), so the idea that an entrepreneur-driven project would be left to its own devices was never in the cards. So now 1871 is toast.
We’re in better shape here on the west coast than I thought, despite missing NY, Boston and Austin, and (risk-averse) Chicago. To your bigger point, however, that there is a lot of failure in success--which nearly all normal people, financier and investor, sophisticate or otherwise, find difficult to stomach longer than any short period of time--it isn't easy for a culture to develop around this insightful understanding, especially if one has had little exposure to it. I have hit home runs in the ninth inning, to tie or win the game, while striking-out in the very at-bat that preceded it. Taking normal risk doesn't lead to a team continuing to work each and every at-bat, where the outcome can turn on a blooper to right that somehow drops-in, followed by a "bad-hop" single to put runners on first and third, bringing the winning run to the plate. Play tough D, keep making contact, get on base, inning by inning, one at-bat at a time, out by out: look for one to drive. Abnormal.
I expect JB's other big initiative, Quantum Corridor, will be all flash and no bang for the buck. If Quantum computing does take off AND does it outside of a coast, my money is on Boulder.
Not gonna happen in Illinois. Mistake by the Lake. I do think that U of I, UChicago, Northwestern, IIT will have a lot of input into Quantum Computing; but the money for it is in Silicon Valley and so is the mentorship.
Any idea why Charlottesville VA is on the first chart? It’s a nice town that I like, but it seems rather small to have a VC presence. Is it because of the University of Virginia?
I suspect it is some monied folks that have moved to C'vile from NYC or elsewhere. As a former VA resident sporadically active in helping start-ups and or young companies, we never looked to C'vile for $$.
Like TX, where I now live, there are some decent middle market enterprises for private investors; and the grip of long-time massive industries (energy in TX and, formerly, tobacco in VA).
one misleading thing about some VC stats, if there is one company that does a massive round it can put a city on a chart, even though there is nothing else of note there. That is why the chart I put up of AUM is key. It shows where the money is. The Bay Area, NYC, and Boston.
Betsy Ziegler's LinkedIn profile prominently lists her pronouns. That tells me all I need to know.
(We really should encourage the completely optional listing of pronouns. It's an excellent signaling system.)
One of your very best posts ever. Bravo and well played.
"And that, my friend, is how the cow ate the cabbage."
JLM
www.themusingsofthebigredcar.com
haha, totally! Chicago is a beautiful city, but the politics make it a mess.
Enjoyed reading this post, thank you. Very insightful.
I've often inquired about Chicago's entrepreneurial ecosystem. Went to school in Indiana, visited Chicago many times to play soccer with the school and to visit both the CBOE and CME as the President of the ISU Investment Club. My elder brother lives there, he's an AA commercial pilot based out of O'hare airport.
I've studied entrepreneurial/innovation ecosystems for years, all over the world. Also studied and read all kinds of material, I'm familiar with Feld's entrepreneur-led maxim, Isenberg, Richard Florida's work, Mazzucato as well as her critics, Saxenian, and studied many government initiatives all over the world.
Chicago reminds me of many European 'ecosystems', where politics and bureaucracy gets in the way, and where merit is not rewarded. Efforts become photo ops for political purposes and appearance.
Oh yes, always beautiful buildings and offices.
Chicago? 🤣
'nuff said
When your mayor has a 6.6% approval rate, that does not bode well for investing in the city.
Good post. Sniper-shot focus on the key elements.
If I had to reduce the post to a fortune cookie:
Buckets of money + high tolerance for failure = viable startup environment
The money part is obvious to outsiders.
The essential role of risk tolerance, probably less so.
Excellent piece which is totally outside my lane, but your explanations made perfect sense on a macro level. Unfortunately.
The smart people, businesses & money are leaving Chicago (and Illinois), so the idea that an entrepreneur-driven project would be left to its own devices was never in the cards. So now 1871 is toast.
Good read
But you forgot the Florida corridor Miami thru Palm beach
All sizzle, no steak. Like Austin Texas.
We’re in better shape here on the west coast than I thought, despite missing NY, Boston and Austin, and (risk-averse) Chicago. To your bigger point, however, that there is a lot of failure in success--which nearly all normal people, financier and investor, sophisticate or otherwise, find difficult to stomach longer than any short period of time--it isn't easy for a culture to develop around this insightful understanding, especially if one has had little exposure to it. I have hit home runs in the ninth inning, to tie or win the game, while striking-out in the very at-bat that preceded it. Taking normal risk doesn't lead to a team continuing to work each and every at-bat, where the outcome can turn on a blooper to right that somehow drops-in, followed by a "bad-hop" single to put runners on first and third, bringing the winning run to the plate. Play tough D, keep making contact, get on base, inning by inning, one at-bat at a time, out by out: look for one to drive. Abnormal.
I expect JB's other big initiative, Quantum Corridor, will be all flash and no bang for the buck. If Quantum computing does take off AND does it outside of a coast, my money is on Boulder.
Not gonna happen in Illinois. Mistake by the Lake. I do think that U of I, UChicago, Northwestern, IIT will have a lot of input into Quantum Computing; but the money for it is in Silicon Valley and so is the mentorship.
Did Matter close as well ? I’m too tired to look it up
Matter tried to plaster its 10 year birthday all over LinkedIn earlier this month. Obviously the propaganda failed to reach an audience.
Again. It's run by government sort of people, not entrepreneurs.
have not heard. For those that don't know, Matter is focused on Medical startups
Any idea why Charlottesville VA is on the first chart? It’s a nice town that I like, but it seems rather small to have a VC presence. Is it because of the University of Virginia?
No idea. NEA is in DC
I suspect it is some monied folks that have moved to C'vile from NYC or elsewhere. As a former VA resident sporadically active in helping start-ups and or young companies, we never looked to C'vile for $$.
Like TX, where I now live, there are some decent middle market enterprises for private investors; and the grip of long-time massive industries (energy in TX and, formerly, tobacco in VA).
one misleading thing about some VC stats, if there is one company that does a massive round it can put a city on a chart, even though there is nothing else of note there. That is why the chart I put up of AUM is key. It shows where the money is. The Bay Area, NYC, and Boston.
That first VC chart was per capita, so the smaller population there could have skewed the result.