Startup lessons from Chicago angel investors

Chicago angel investor Jeff Carter writes that the main thing the Windy City’s startup scene lacks is capital.

In an op-ed on ChicagoBusiness.com, Carter says the answer is to set up venture capital firms locally. Chicago Mayor Rahm Emanuel has suggested the city recruit coastal VCs, but Carter says that’s not a long-term builder of a startup ecosystem.

“The only reason for them to come to the Midwest is to cherry-pick the best deals. … A local fund will plow money in local startups,” he writes, noting a difference between true VC firms and brokers.

In Missouri, Springfield entrepreneurs have echoed the same need for capital, and St. Louis seems to be well on its way to building a startup ecosystem, with technology firms leading the way.

“If the Midwest is going to have a sustainable startup ecosystem, the money has to come from Midwest high-net-worth individuals, Midwest family offices, Midwest pension funds, Midwest corporations, Midwest funds or funds and banks,” Carter writes.
 
Read more from Crain’s Chicago Business.