I view it as a Chicago problem. There are two types of Chicago startups: Bootstrapped (no cash, sweat of the brow, all equity) and amateur VC/angel.
What I mean by bootstrapped should be obvious. When I say "amateur" VC/angel, I mean someone doing a startup because they want to do a startup, not because they're looking to solve a problem. Or someone who has a pet project.
Its a real problem for Chicago tech, as I see most colleagues head of to the SFBA or NYC to where startups have not just the technical and financial resources they need, but the proper management (whether that's founders, advisors, or mentors) resources as well.
Feel free to get in touch; would love to chat over coffee (email in profile).
EDIT: My apologies for not reading your paper/data/results first; it appears you hit the nail on the head:
"Students view Chicago as an “entrepreneurial city”, but noted the Midwest needs to enhance access to capital and entrepreneurial support networks — through initiatives like ThinkChicago — in order to entice more entrepreneurs to start companies in the region."
This. I am sick and tired of hearing how nobody can get funding in Chicago. There are two problems: 1) most of their ideas suck, even by startup standards (and I've worked with enough startups to have somewhat of a standard). 2) The VCs want to see next-to-impossible business models / traction. I don't like the frothiness going on in other areas right now, but Chicago takes such little risk it's distburing.
Chicago lacks serial entrepreneurs and a true ecosystem. If you read the "results" section of our report, it goes in-depth. I just posted the thing to the HN homepage. We had to censor it for fear of political push-back (it was a very real risk from some very powerful people). I'm happy to share more in person.
I'd settle for some basic summary statistics.
http://worldbusinesschicago.com/techcluster
Some context: My roommate and I led this during grad school for the City of Chicago and a bunch of VCs / startup community around the Midwest. We looked primarily at ag-tech, health-tech / life sciences, and advanced manufacturing. Then, we looked at the supposed "brain drain" where we educate all these kids here in the Midwest and then they leave for the coasts. The pundits just want to say "We need more STEM! Argh!" Truth: We don't pay employees enough to stay, even with differences in cost-of-living, and the startups here are under-funded, tackle low-level problems, and Chicago is run by a cartel of private equity / consultants-turned-VCs.
I'm trying to launch a startup in Chicago in data analytics, and it's tough. All the startups here that get publicity don't solve any problems. I'm sorry, but Groupon and GrubHub? Seriously? That's the best you can do? I don't know what your thoughts on this are, but I'd actually love to listen to someone else vent if you're in Chicago. Trying to find a co-founder has been rough, since you tell people you're doing something other than digital tech and get a blank stare.
I like to believe the midwest is actually a better place to do a startup than NYC or SF primarily because the cost to bootstrap is much lower here. What about just building your prototype in the midwest and taking it to the coast for funding? I don't feel like capital is really confined to specific regions anymore, and Chicago is only a 3-hour flight from NYC.
