Illinois sees jump in share of venture capital dollars invested

Coastal states command the vast majority of venture capital dollars, with startups in California, Massachusetts and New York inking more than half of all venture deals in 2017.

But in the past five years, inland states outside traditional venture hubs have made gains in the number of venture deals and equity raised by startups, with Illinois near the front of the pack with its share of overall equity and deal count. That’s according to VCJ’s analysis of data from Thomson Reuters.

In 2013, startups in Illinois raised $671.9 million, or 1.9 percent of all venture dollars invested that year. In 2017, they raised $1.89 billion, or 2.7 percent of all venture capital, the largest percentage increase of any state except for New York.

Illinois also saw an increase in its share of venture deals over the same period, rising to 131, or 2.8 percent, of all venture deals in 2017, from 125, or 2.26 percent, of all venture deals in 2013. Only New York, Ohio and Colorado saw greater increases in their shares of venture deals during that time frame.

In 2017, Chicago-based Outcome Health was the state’s largest deal, raising $600 million from Balyasny Asset Management, Pritzker Group Venture Capital, CapitalG and Leerink Capital Partners, according to Thomson Reuters.

The majority, 88, of the 117 Illinois companies to raise venture funds in 2017 are in Chicago.

Venture firms in the Prairie State have also seen an increase in the number and overall size of funds. In 2013, Illinois firms raised 10 venture funds totaling $219.2 million. In 2017, those numbers increased to 13 firms that raised $436.7 million.

Below are the 10 largest Illinois-based venture funds raised in 2017.

The Illinois state flag waves in front of the Wrigley building. Photo courtesy of 400tmax/iStock/Getty Images.

Download Data: Top 10 Illinois venture funds (2017)