Chicago is home to a thriving startup ecosystem, ranking 15th globally and maintaining its 6th position in the United States, as per the Global Startup Ecosystem Index 2024. This vibrant environment is bolstered by a highly skilled workforce, a dynamic venture capital landscape, and numerous funding opportunities. In 2023, Chicago was home to 31 Fortune 500 companies, showcasing its strong industrial roots and business-friendly environment.
The city is rich with innovation hubs and accelerators such as Techstars Chicago and the Chicago Innovation Exchange. In 2023, significant developments included the opening of the $225 million Hyde Park Labs facility and the launch of 1871’s AI Innovation Lab. These initiatives, along with robust support from institutions like the University of Chicago's Polsky Center, foster a culture of innovation and entrepreneurship. Noteworthy startups like Kin Insurance, which raised $443.2 million, and Foxtrot, with $185.4 million in funding, exemplify the success achievable in Chicago’s dynamic ecosystem.
Startups in Chicago face several significant challenges, including limited resources, which require creative solutions for securing funds and forming strategic partnerships. Hiring suitable talent from a vast candidate pool is another hurdle, necessitating careful selection to align with company needs and culture. Financial management, particularly cash flow and investor reliance, is critical to avoid operational bottlenecks. Additionally, cybersecurity threats demand robust measures to protect sensitive data and maintain customer trust. These challenges are compounded by the need to scale operations while maintaining innovation and agility in a competitive ecosystem.
Notwithstanding these challenges, here's a look at some of the best Chicago-based startups for 2024.
1. Renterra
Year Founded: 2022
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Andy Feis, Nick Hibberd
Renterra is a Chicago-based startup founded in 2022 by Andy Feis and Nick Hibberd. The company offers a cutting-edge software platform specifically designed for the equipment rental industry. Renterra's cloud-based operating system streamlines all aspects of rental operations, from inventory management and customer relations to analytics and operational efficiency. This robust, all-in-one solution allows rental businesses to manage everything on a single, easy-to-use platform, significantly improving operational efficiency and reducing administrative burdens. The platform also includes a fully functional mobile application and an Integrated Online Storefront, enabling rental companies to bring their operations online seamlessly.
Since its launch, Renterra has expanded its reach across the U.S. and Canada and has been well-received by the industry. The company recently secured $3 million in funding led by Bienville Capital, with participation from Iron Prairie Ventures and Alaris Capital, bringing its total financing to $4 million. This new capital will help Renterra accelerate product development, expand its market reach, and enhance its customer support services. The startup was designed and built with input from over 25 rental industry experts, collectively bringing more than 500 years of experience to the table, highlighting its deep-rooted commitment to transforming the equipment rental sector.
2. Anthill
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Muriel Clauson, Young-Jae Kim
Anthill, founded in 2020 and headquartered in Chicago, is revolutionizing workforce management for the deskless workforce with its AI-driven platform. Designed by co-founders Muriel Clauson and Young-Jae Kim, the company focuses on enhancing productivity and engagement for frontline workers. Anthill’s solutions include an engagement platform for scalable two-way communication and a no-code AI assistant builder for automating workforce management tasks. This innovative approach helps companies streamline operations, improve employee retention, and foster skill development among their deskless employees.
In August 2021, Anthill secured $3 million in seed funding led by Rethink Education, with participation from Origin Ventures, BBG Ventures, and others. This funding will be used to further develop the platform and expand the team. Anthill’s mission is to make AI technology accessible in industries reliant on frontline workers, enhancing economic opportunities and elevating human work. By providing tools that facilitate communication, training, and internal mobility, Anthill empowers organizations to better connect with and support their essential workforce.
3. Praia Health
Year Founded: 2024
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Justin Dearborn
Praia Health is a cutting-edge digital health startup based in Chicago, Illinois. Incubated at Providence, one of the nation’s largest and most innovative health systems, Praia Health aims to revolutionize the delivery of individualized health solutions at scale. Launched in January 2022, Praia Health’s platform supports over 3.5 million user accounts and offers robust identity and personalization technology. This technology is at the core of Providence's digital experiences, providing features such as digital self-serve navigation, on-demand virtual care, and tailored program recommendations. The platform's success has been backed by a $20 million Series A funding round led by Frist Cressey Ventures, with additional support from SignalFire and Epsilon Health Investors.
Praia Health’s innovative approach includes a "digital flywheel" concept, designed to engage health consumers algorithmically, thus enhancing patient care and operational efficiency. The platform integrates seamlessly with existing electronic medical records and other data sources, providing a comprehensive digital experience for health systems. By facilitating the deployment of consumer-facing solutions, Praia Health helps health systems personalize patient care journeys, reducing traditional barriers to patient care. This has led to partnerships with notable health organizations like Community Health Network, which recently licensed the platform. With a strong focus on transforming the healthcare landscape, Praia Health is well-positioned to drive significant improvements in patient engagement and health outcomes.
4. Amount
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 200+
Founders: Al Goldstein
Amount is a global digital origination and decisioning SaaS platform designed to help financial institutions rapidly digitize their lending and account opening processes. Founded in Chicago, Amount leverages AI-driven technology to offer a unified platform that combines front-end customer experience with backend automation. This allows banks and credit unions to quickly launch new lending products, optimize risk decisioning, and enhance customer journeys, driving profitability and operational efficiency.
In May 2021, Amount secured $99 million in Series D funding, led by WestCap, bringing its total capital raised to $243 million. This investment will support the company’s mission to provide cutting-edge solutions for financial institutions, enabling them to compete with fintech rivals by delivering seamless digital experiences. Amount partners with major banks like HSBC, TD Bank, and Barclays, serving institutions managing over $3.1 trillion in assets and more than 50 million customers worldwide.
5. Logik.io
Year Founded: 2021
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Christopher Shutts
Logik.io, founded in 2021, is transforming the Configure, Price, Quote (CPQ) industry with its advanced configuration solutions designed to simplify the selling of complex products. Based in Chicago, the company offers a robust Commerce Logic Engine that enhances product configuration capabilities for both CPQ and e-commerce applications. This technology allows businesses to streamline their sales processes, reduce quoting times, and improve customer experience by providing intelligent guided product discovery, configuration, and recommendation tools.
In May 2023, the company raised $16 million in Series A funding led by Emergence Capital, with additional investments from Salesforce Ventures, ServiceNow Ventures, and High Alpha. This funding supports Logik.io’s mission to connect B2B customers with perfect-fit solutions faster and more efficiently, meeting the growing demand for consumer-like experiences in the B2B space. Logik.io’s leadership team, including co-founders Christopher Shutts and Godard Abel, brings over 100 years of collective experience in the CPQ industry, positioning the company as a leader in transforming B2B sales processes.
6. Arch Pet Food
Year Founded: 2022
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Adam Mutschler, Gabriel Huertas del Pino
Arch Pet Food, based in Chicago, is a startup dedicated to sustainable and hypoallergenic pet nutrition. Founded in 2022, Arch offers a new take on pet treats by eliminating common allergens and using alternative protein sources. Their product lineup includes functional dog treats designed to improve digestive health, hip and joint health, and skin and coat health. A standout feature of Arch's products is the use of cricket protein, which is both a sustainable and highly nutritious alternative to traditional meat-based proteins. This innovative approach not only benefits pet health but also significantly reduces the environmental footprint compared to conventional protein sources.
In addition to their existing treats, Arch Pet Food is preparing to launch new products, including Single-Ingredient Copi Treats made from dehydrated Asian Carp and a comprehensive dog food formula called Super Future Formula. This new formula blends plant and insect proteins, providing a high-protein, nutrient-rich option that supports digestive health while avoiding common allergens. Arch's commitment to sustainability and innovative pet nutrition has earned them recognition, such as being selected as a finalist for Purina’s 2024 Pet Care Innovation Prize and participating in Plug and Play Topeka’s accelerator program. To date, Arch Pet Food has raised $145,000 in funding, including support from accelerator programs and grants.
7. LanzaJet
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Jimmy Samartzis (Founding CEO)
LanzaJet, founded in 2020 and headquartered in Chicago, is a pioneering company in sustainable aviation fuel (SAF) technology. Utilizing their proprietary Alcohol-to-Jet (ATJ) technology, LanzaJet converts low-carbon ethanol into SAF and renewable diesel, making significant strides in decarbonizing the aviation industry. The company aims to address climate change urgently by providing scalable, drop-in fuels compatible with existing aircraft and infrastructure.
LanzaJet has secured substantial funding to support its mission. Notably, the company received a $50 million project finance investment from Microsoft’s Climate Innovation Fund in 2022, which was followed by additional investments, including a $30 million investment from Southwest Airlines in 2024. This funding supports the development of their first commercial-scale ethanol-to-SAF plant, Freedom Pines Fuels in Georgia, which will produce 10 million gallons of SAF and renewable diesel annually. With backing from investors like British Airways, Shell, and Mitsui & Co., LanzaJet is well-positioned to expand its global footprint and lead the industry’s transition to net-zero emissions.
8. Aequum Capital
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: John Stanfield (CEO), Orasio Becerra (COO)
Aequum Capital, headquartered in Chicago, is a tech-enabled commercial lending platform founded by five career lending executives with over 100 years of collective experience. The company specializes in providing financing solutions for lower middle-market businesses that are typically underserved by traditional banks. Aequum offers asset-backed and cash flow loans ranging from $1 million to $10 million, targeting a diverse array of industries including retail, hospitality, healthcare, manufacturing, and wholesale. Their tech-driven approach allows for efficient underwriting, funding, and servicing processes, enabling quick loan closures and tailored financial solutions to meet the specific needs of their clients.
Since its inception, Aequum Capital has achieved significant milestones, including securing $57.5 million in conventional debt funding and generating a record $96 million in loan commitments in the first quarter of 2024. The firm's ability to understand and leverage the value of underlying assets has allowed it to provide substantial credit facilities, such as the recent $30 million facility to a leading print and logistics service provider. By focusing on businesses with strong management teams and a need for flexible financial solutions, Aequum Capital aims to support growth, stabilize operations, and drive success for its clients in a dynamic landscape.
9. Quicklly
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Keval Raj, Hanish Pahwa
Quicklly, founded in 2018 and headquartered in Chicago, is an online marketplace dedicated to delivering authentic South Asian groceries, meal kits, and tiffin services across the United States. With a product range of over 250,000 items, Quicklly offers everything from fresh produce and spices to ready-made meals from local Indian restaurants. The platform connects consumers to a variety of Indian and South Asian markets, enabling same-day delivery in Chicago and San Francisco and nationwide delivery for other areas.
Quicklly's business model supports over 300 local vendors, providing them with an e-commerce platform and analytics tools to manage inventory and expand their consumer base. In July 2022, Quicklly raised $4 million in a seed funding round led by JAM Fund, Great North Ventures, and notable investors like Home Chef founder Pat Vihtelic. The funds are aimed at expanding same-day delivery services to additional cities and launching a 90-minute grocery delivery service in partnership with Instacart. Quicklly’s mission is to bring authentic Indian flavors to every corner of America, making it easier for South Asians to access familiar and premium-quality groceries.
10. Alphathena
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Mohan Naidu, Tushad Driver
Alphathena, headquartered in Warrenville, Illinois, is an AI-powered direct indexing platform co-founded by Mohan Naidu and Tushad Driver in 2020. The company aims to revolutionize personalized investing by providing financial advisors with tools to create custom portfolios tailored to individual client needs. Alphathena's platform includes features such as tax-loss harvesting, automatic rebalancing, and deep analytics, all designed to optimize investment strategies and enhance advisor productivity. The company's open API allows seamless integration with existing wealth management workflows, making it easier for advisors to offer personalized investing solutions without the burden of outsourcing or manual processes.
In January 2024, Alphathena secured a $4 million investment led by ETFS Capital and Hyde Park Angels, underscoring the platform's potential to transform the financial advisory landscape. This funding will be used to further develop Alphathena's automated solutions and expand its reach to more independent advisors and growing firms. The platform's innovative approach and user-friendly interface have earned it recognition, including winning the Morningstar Fintech Showcase in 2023. With its mission to democratize access to direct indexing and personalized investing, Alphathena is poised to become a significant player in the fintech industry.
11. TransLoop
Year Founded: 2019
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Nicholas Reasoner, Scott Houdek, Brien Maloney, Chris Sujka
TransLoop is a modern freight brokerage that has quickly established itself as a leader in the logistics industry. Founded in 2019 by Nicholas Reasoner, Scott Houdek, Brien Maloney, and Chris Sujka, the company combines cutting-edge technology with top-tier customer service to offer unparalleled transparency, reliability, and real-time collaboration for both shippers and carriers. In just five years, TransLoop has been recognized as one of Transport Topics' Top 100 Freight Brokerage Firms, a testament to its innovative solutions and exceptional service.
With its headquarters in Chicago, TransLoop operates multiple offices and continues to expand its team and network. The company prides itself on delivering value by efficiently matching loads with carriers, ensuring a best-in-class customer experience. This rapid growth and success can be attributed to the dedication and expertise of its team, as well as the trust and support from its customers and carriers. TransLoop remains committed to transforming the logistics industry by making it more transparent, reliable, and collaborative.
12. MVMNT
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Michael Colin
MVMNT is a Chicago-based freight tech startup founded in 2020 by Michael Colin. The company specializes in providing small and mid-sized freight brokerages with enterprise-level technology and embedded financial services, leveling the playing field against larger competitors. MVMNT's proprietary Transportation Management System (TMS) offers a comprehensive suite of tools tailored specifically for freight brokers, allowing them to streamline operations, improve cash conversion, and move more freight efficiently. The platform includes features such as load building, carrier network optimization, payment processing, and real-time visibility, all designed to enhance day-to-day operations and profitability for brokers.
In October 2022, MVMNT secured $20 million in Series A funding led by Andreessen Horowitz, with participation from Equal Ventures, Abstract Ventures, and M25. This funding will help MVMNT further develop its platform and expand its market reach. The company's mission is to support the long-tail of the supply chain by providing technology that augments existing brokerage relationships rather than replacing them. By focusing on the practical needs of freight brokers and enabling them with state-of-the-art technology, MVMNT aims to create a generational impact on the freight industry, helping smaller brokerages compete more effectively and efficiently.
13. Avaneer Health
Year Founded: 2019
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Stuart Hanson (CEO)
Avaneer Health, founded in 2019 and headquartered in Oak Brook, Illinois, is a pioneering company in the healthcare technology sector. The company provides a secure, interoperable network designed to simplify healthcare transactions and improve patient outcomes. Avaneer Health leverages blockchain and Fast Healthcare Interoperability Resources (FHIR) technology to enable real-time data sharing between payers and providers, reducing administrative burdens and enhancing transparency. Their flagship product, Avaneer Coverage Direct™, ensures accurate insurance coverage information by directly connecting payers and providers, thereby minimizing coverage errors and streamlining the revenue cycle process.
In its quest to transform the healthcare industry, Avaneer Health secured $50 million in seed funding in Januasry 2022 from prominent industry players such as Aetna, Anthem, Cleveland Clinic, Health Care Service Corporation (HCSC), PNC Financial Services Group, and Sentara Healthcare. This funding supports the company's mission to create a more efficient, collaborative healthcare ecosystem by eliminating intermediaries and enabling direct, peer-to-peer data transactions. Avaneer Health's solutions promise significant cost savings and improved care delivery by facilitating seamless, real-time data exchange and reducing the inefficiencies that currently plague the healthcare system.
14. Kadeya
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Manuela Zoninsein
Kadeya, based in Chicago, is transforming the beverage industry with its innovative closed-loop hydration system. This climate technology startup aims to eliminate single-use plastic bottles by offering vending machines that dispense beverages in reusable stainless-steel bottles. After use, bottles are returned to any Kadeya machine, which washes, sanitizes, and refills them. Kadeya's system reduces the carbon footprint of beverage consumption by 70%, significantly cutting down on plastic waste and emissions.
Founded by Manuela Zoninsein, Kadeya has attracted significant attention and investment. In October 2022, the company secured pre-seed funding from Evergreen Climate Innovations and was recognized by the Techstars Farm to Fork food tech accelerator. Kadeya's first customers include industrial workforces and organizations like the U.S. Air Force. With plans to expand its machine network, Kadeya is set to make a substantial impact on sustainability in the beverage industry.
15. Live Bash
Year Founded: 2021
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: John Hart
Live Bash, founded in 2021 and headquartered in Chicago, is an entertainment technology startup revolutionizing the performance industry with its blockchain-powered platform. The company offers physical and fully equipped stages in major cities like Chicago and Los Angeles, where performers can live stream their shows and mint digital collectibles of their performances. This innovative approach allows artists to monetize their content through digital collectibles and NFTs, providing new revenue streams and greater control over their performances. Live Bash aims to democratize access to high-quality performance spaces for artists of all types, from musicians and comedians to magicians and motivational speakers.
In April 2022, Live Bash secured $21 million in seed funding to further develop its platform and expand its reach. This investment will help the company continue to provide affordable, high-tech venues that bridge the gap between local talent and global audiences. By leveraging blockchain and smart contract technologies, Live Bash enables performers to create unique, monetizable experiences for their fans. The company's mission is to empower undercapitalized artists and bring innovative production capabilities to the broader entertainment industry, fostering a new era of live performances and digital engagement.
16. Fuel Me
Year Founded: 2020
HQ: Chicago, Illinois, United States
Size: 51-200
Founders: Boy Schook, Carlo Passacantando
Fuel Me, founded in 2020, is transforming the fuel procurement industry with its innovative platform that streamlines fuel management and delivery for various sectors, including construction, data centers, transportation, and distribution. The platform offers real-time order tracking, pricing consistency, and automated invoicing, ensuring efficiency and reliability. In March 2024, Fuel Me raised $18 million in an oversubscribed Series A funding round, co-led by Pritzker Group Venture Capital and Tribeca Venture Partners. This funding will enable Fuel Me to accelerate technology development and expand its market presence, enhancing fuel delivery services nationwide.
Fuel Me's platform has already completed over 20,000 fuel deliveries, serving an expanding roster of Fortune 500 clients. By integrating AI-driven optimization and predictive ordering, Fuel Me provides tailored solutions that streamline fuel management processes, improve compliance, and maximize operational efficiency. With strategic partnerships and a commitment to innovation, Fuel Me is poised to redefine the fuel procurement industry, offering unmatched service and technology to its growing customer base.
17. Vibe.co
Year Founded: 2021
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: Arthur Querou, Franck Tetzlaff
Vibe.co, headquartered in New York and Paris, is transforming the streaming TV advertising landscape for small and medium-sized businesses (SMBs). Founded in 2021, Vibe.co aims to democratize access to TV advertising by offering a user-friendly platform that enables advertisers to create campaigns in just a few minutes. The platform allows businesses to display their ads on major streaming apps and TV channels, providing sophisticated targeting capabilities that were previously accessible only to larger enterprises. With its intuitive interface, Vibe.co simplifies the process of launching and managing TV ad campaigns, making it accessible for businesses of all sizes.
In February 2024, Vibe.co secured $22.5 million in Series A funding led by Singular, with participation from Elaia Partners, Sequoia’s Scout Fund, and other notable investors. This funding will support the company's efforts to enhance its technology, expand its sales team, and establish strategic partnerships with major TV networks and streaming apps. Vibe.co’s innovative approach and robust technology have already attracted over 2,000 clients in the US, achieving significant revenue growth. The company continues to focus on providing SMBs with effective and scalable advertising solutions that deliver high returns on ad spend.
18. Workbox
Year Founded: 2019
HQ: Chicago, Illinois, United States
Size: 1-50
Founders: John Wallace
Workbox, founded in 2019 and headquartered in Chicago, is a rapidly growing national workspace operator that provides flexible office solutions and a robust platform for professional connections. The company offers coworking spaces, private offices, meeting rooms, and event spaces tailored to accommodate the dynamic needs of modern businesses. In addition to workspace solutions, Workbox operates an accelerator program and a venture capital arm, Workbox Ventures, which invests in early-stage companies shaping the future of work. This holistic approach enables members to access a comprehensive suite of resources, including operational support, capital access, and a network of investors and advisors, fostering a thriving community of innovative professionals.
In June 2024, Workbox secured $17.5 million in Series A funding led by Chicago Atlantic, with an option to raise an additional $5.5 million. This funding will be utilized to expand Workbox's footprint across the United States, with new locations already announced in Chicago and Dallas. Since its inception, Workbox has more than doubled its revenue annually, driven by the increasing demand for flexible office spaces and the rise of hybrid work models. The company's commitment to member success, innovative workspace solutions, and strategic partnerships positions it as a leader in the coworking industry, continually evolving to meet the needs of its diverse clientele.
FAQs
1. How does the funding landscape look for Chicago startups?
Chicago's funding landscape is vibrant, with significant investment from venture capital firms and angel investors. Recent examples include Kin Insurance raising $443.2 million and Foxtrot raising $185.4 million. The city ranks high in total early-stage funding and has a strong network of investors supporting various stages of startup development.
2. What types of startups thrive in Chicago?
Chicago's diverse economy supports a range of startups, particularly those in fintech, life sciences, AI, and big data analytics. The city's strong network of top-tier universities and research institutions, such as Northwestern University and the University of Chicago, provides a robust foundation for innovation and growth in these sectors.
3. What resources are available for startups in Chicago?
Chicago offers numerous resources for startups, including accelerators like Techstars Chicago and incubators such as the Chicago Innovation Exchange. The city also hosts innovation hubs like 1871 and the Hyde Park Labs, which provide support and networking opportunities for budding entrepreneurs.
