Small Business Technology News
Chicago Technology Startups Raise $391 Million In 2012
Written by Tim Morral
Chicago tech firms experience solid growth during 2012, with fifty-nine firms collecting $1 million or more in investment funding.
Chicago's technology sector is strong and growing, according to a recent report by Alex Wilhelm at TheNextWeb.com.
Although the vitality of the Windy City's technology sector isn't news to Chicago insiders, the growth experienced by young technology firms in 2012 -- as well as their skill in attracting investors -- was impressive.
Key metrics for the acceleration of growth among Chicago's young technology companies include:
- Chicago launched 197 new technology startups in 2012, an increase of 4 startups from 2011.
- 59 technology companies raised $1 million or more in investment capital in 2012 compared to the 44 firms that achieved the $1 million benchmark last year.
- Combined, Chicago technology startups raised a total of $391 million in 2012.
Additionally, Chicago technology companies returned $698 million to their investors in 2012. This included 26 acquisitions as well as the IPO of the brand eCommerce and digital marketing firm, Acquity Group (NYSE: AQ).
Healthcare technology dominated Chicago's technology investments at 27 percent of raised funds -- due largely to the $50 million GoHealth raised to construct a health insurance comparison site.
Despite the fact that Chicago's technology scene isn't nearly as large as Silicon Valley, the city has clearly established itself as a destination for technology entrepreneurs eager to launch in a rapidly growing tech hub.
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