Chicago Angel Investors: A Step-by-Step Guide to Finding Funding

Chicago has a thriving angel investor community, with a significant portion of investors based in the city. The city is home to over 200 angel groups.

To find funding, start by researching local angel groups, such as the Chicago Angel Fund, which has invested in over 20 companies since its inception. These groups often have a specific focus or industry they invest in.

The Chicago Venture Summit is a great resource to learn about the city's angel investor community and connect with potential investors. The summit features pitches from startups and networking opportunities with investors.

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Chicago is a hub for angel investors, with several groups offering financial support and mentorship to startups. Cornerstone Angels, founded in 2013, focuses on covering logistical gaps in Chicago-based startups, typically investing during the pre-seed and seed rounds of funding.

The group is known for making large investments, ranging from $300,000 to $3 million in Chicago startups. They frequently invest in fintech, healthcare, education, and software companies. Cornerstone Angels also invests in companies that can grow quickly into large sustainable businesses, fueling innovation and job creation in the region.

Other notable angel groups in Chicago include the West Suburban Angels, which has invested over $2 million in less than a decade, and the Hyde Park Angels, which has invested in more than 50 startups and has a diverse portfolio in green technology companies.

Dun Robin Ventures is a Chicago-based venture capital firm founded by two University of Illinois graduates who are passionate about growing the local startup community. They focus on nurturing top startup companies in the area.

They give accredited investors access to Chicago's thriving tech scene through an online platform where they can pick and choose from highly vetted investments. Investors can see which opportunities are currently up for funding and which are due in the coming quarter.

Dun Robin Ventures operates differently from traditional venture capital firms, marketing each firm, providing guidance through their mentor network, and connecting them with partner Venture Capital firms to increase company exposure. They aim to support entrepreneurs by providing advocacy and support similar to an angel investor.

Cornerstone Angels is a membership-based private investment group composed of successful entrepreneurs and business executives. They are based in Northbrook, IL and have a focus on the greater Midwest.

The group invests across various sectors, with a particular interest in Software, Media & Entertainment, Mobile, Manufacturing & Industrial, Consumer/Retail & Food/Beverage, Business Services, Healthcare Services, and CleanTech. They do not invest in Life Sciences, Biotech, or Real Estate.

Cornerstone Angels targets companies raising $500K to $3MM, with an initial investment sweet spot of $100K to $500K. They can invest anywhere from $10K to $1MM, and through their network, they can help bring together syndicates of several million dollars.

The group has built a portfolio of 31 companies since its launch and is a member of the Angel Capital Association. They actively support companies and entrepreneurs by making introductions to other parties as relevant and based on interest.

Cornerstone Angels is known for making large investments, typically investing between $300,000 and $3 million in Chicago startups. They frequently invest in fintech, healthcare, education, and software.

The West Suburban Angels are a collective of angel investors that have been around since 2010. They've invested over $2 million in less than a decade, with a focus on startups.

This group is unique because they don't just invest money, they also offer mentorship and valuable employees to the startups they support. They've invested between $1,000 and $500,000 in their portfolio companies.

The West Suburban Angels frequently partner with the Naperville Public Library and hub88, showcasing their commitment to the community. They've also invested in therapy companies and medical startups.

One of the standout features of this group is their willingness to go beyond just financial investment, truly adding value to the startups they support.

Hyde Park Angels are a group based in Chicago, formed in 2007. They prioritize investing in Chicago startups.

The group commonly invests in food-based startups, but with a twist - they prefer to invest in food services companies, not many restaurants. This approach has led to a diverse portfolio.

Their investment range is between $1 million and $2 million, making them some of the best angel investors in Chicago. Over the last decade, they've invested in more than 50 startups.

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Starting a Business in Chicago requires a solid business plan to attract the right investor. This plan will help you secure the finance you need to grow your business.

You'll need to be prepared to relinquish some equity in your company to attract an angel investor, but in return, you'll receive the capital you need to take your business to the next level. This can be a great opportunity to learn from experienced investors who can offer mentorship and guidance.

The Loop and West Loop are popular business destinations in Chicago, along with Near North Side and West Town, where you'll find a high concentration of early-stage companies and start-ups working across various industries.

Launching a business in Chicago can be a great opportunity for entrepreneurs to grow their companies with the help of angel investors.

To attract an angel investor, you'll need to relinquish some of your company's equity, but in return, you'll receive the finance you need to grow your business.

Angel investing is a great way for both investors and Chicago business owners to work together to grow a new business, and some investors will even offer mentorship.

The Loop and West Loop are popular business destinations in Chicago, with a wide number of early-stage companies and start-ups working across several industries.

Technology companies flock to these areas, but you'll also find businesses working across real estate and healthcare.

Entrepreneurs can sign up to put details of their business idea or project and pitch to business angels and investors based in Chicago.

The Angel Investment Network is a global enterprise, allowing entrepreneurs and angel investors to find partners close to home in Chicago, and from across the rest of the US and around the world.

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Identifying your investment needs is a crucial step in starting a business. You need to know what you're looking for and how much funding you require before approaching investors.

A clear business plan is essential in outlining your financial projections, market analysis, and marketing strategy. This will help you determine what your business needs are.

It's also vital to determine what kind of investment you're looking for, such as equity financing, debt financing, or convertible notes. Matching your needs with the right investment structure can help you maximize the funds you receive.

Understanding your business timeline is also crucial. Are you looking for short-term funding to cover immediate expenses, or are you seeking long-term investment to support growth and expansion?

A well-crafted pitch deck is essential for securing investment. Your pitch deck should clearly outline your business concept, team, financial projections, and marketing strategy.

Tailor your pitch deck to the investors you're targeting, highlighting aspects that are most relevant to their investment portfolio. This will help you stand out from the competition and make your pitch memorable.

A visually appealing and easy-to-read pitch deck is crucial. Avoid cluttering your slides with too much text or graphics, as this can be overwhelming for investors.

Practice your pitch delivery and be prepared to answer any questions that may arise. Rehearse your pitch with colleagues or friends and gather feedback to improve your presentation.

A well-crafted pitch deck is only one part of the investment process. Remember to follow up with investors and continue building relationships.

Starting a business requires careful consideration of the legal requirements that apply to investment deals. Working with a lawyer who specializes in investment deals can be invaluable in ensuring that your investment agreements are compliant with relevant regulations.

Chicago has strict zoning laws that dictate where certain types of investments can be made. This means you'll need to research and understand the zoning laws in your area before making any investment decisions.

It's essential to work with a lawyer who is familiar with the regulations around the types of securities that can be offered to investors. This will help you avoid any potential legal issues down the line.

Investors must be aware of the specific legal requirements for investment deals in Chicago, including the regulations around securities offerings.

Building an advisory board is a crucial step in starting a business, and Chicago is an excellent place to find investors. Chicago's proximity to major financial institutions and its skilled workforce make it an attractive location for entrepreneurs.

Before looking for investors, it's essential to identify your investment needs and goals. This will help you determine what type of investment you're looking for and understand your business timeline.

A pitch deck is a vital tool for securing investment, as it outlines your business concept, team, financial projections, and marketing strategy. This helps you stand out from the competition and make your pitch memorable.

To build relationships with local investors, consider reaching out to investors in your industry, attending local networking events, and participating in pitch competitions and demo days.

Here are some common mistakes to avoid when seeking investors in Chicago:

By avoiding these mistakes and following these tips, you'll be well on your way to building a strong advisory board and securing the investment you need to take your business to the next level.

Chicago is a hub for startups, with fintech, healthcare, and logistics being the most popular industries. These sectors received significant funding from angel investors and venture capital firms in 2020 and 2021.

Fintech companies are a major player in Chicago's startup scene, with many receiving substantial investments. In fact, Glenn Tullman helped a remote healthcare company sell for $38 billion, demonstrating the potential for growth in the fintech industry.

Healthcare startups are also thriving in Chicago, with many companies receiving funding to develop innovative solutions. The success of these companies is a testament to the city's supportive ecosystem for startups.

Logistics startups are another area of focus in Chicago, with many companies receiving investments to improve supply chain management and delivery services.

Attending events and networking can be a great way to connect with Chicago angel investors. Professor Emily Underwood from the University of Chicago Law School's Innovation Clinic offers events on convertible notes and other relevant topics.

You can also join the Chicago Booth Angels Network of Chicago to learn about Illinois Angel Tax Credits and common angel investment instruments. These events provide valuable information and opportunities to connect with potential investors.

Networking in Chicago can be challenging, but using AngelMatch's vast database of angel investors can be a helpful tool. The database contains thousands of angel investors, including several hundred who live in Chicago.

The Venture Summit is a great place to connect with investors in Chicago, but networking can be challenging and there's no guarantee of getting startup funding.

The Venture Summit hosts some of the biggest names in the venture capital industry, including Discovery Partners Institute and Techstars Chicago.

AngelMatch is a valuable resource for finding investors in Chicago, with a vast database of thousands of angel investors, including several hundred who live in Chicago.

You can access a dashboard of over 100,000 investors through AngelMatch, making it easier to research and connect with potential investors for your startup.

The city of Chicago has a rich history of entrepreneurship and innovation, dating back to the early 1900s, and is now home to many successful startups and thriving businesses.

Chicago's proximity to major financial institutions and its diverse, highly educated workforce make it an attractive location for startups and investors alike.

Join Professor Emily Underwood from the University of Chicago Law School’s Innovation Clinic to learn more about negotiating a Convertible Note at an upcoming event.

The University of Chicago Law School’s Innovation Clinic and the Chicago Booth Angels Network of Chicago are hosting a series of events to educate entrepreneurs about Illinois Angel Tax Credits and common angel investment instruments.

The past events that have shaped the world of networking are truly fascinating. One notable example is the first-ever computer network, ARPANET, launched in 1969.

This pioneering project was developed by the US Department of Defense's Advanced Research Projects Agency (ARPA) to connect computers at different research facilities. The network was initially limited to four nodes, but it paved the way for the modern internet.

The first email was sent over ARPANET in 1971 by Ray Tomlinson, who also invented the "@" symbol as a way to address messages. This innovation revolutionized communication and laid the groundwork for the digital age.

Networking events have been a staple of professional development for decades, with conferences and trade shows bringing together industry leaders and innovators.