CHICAGO | Economic & Business Development

[the urban politician]

British iam Bank Chooses Chicago For Global Headquarters

http://www.areadevelopment.com/newsi...illinois.shtml

[IrishIllini]

Originally Posted by the urban politician

British iam Bank Chooses Chicago For Global Headquarters

http://www.areadevelopment.com/newsi...illinois.shtml

Great piece. Only 35 employees to start, but hopefully things take off and we continue to see more moves like this. Great to see they're coming from outside the metro area. I'd love to see Chicago continue to take a more aggressive approach in luring companies from pricey domestic and foreign markets. The talent and infrastructure is here and the cost of doing business is considerably lower than all peer cities!!

[emathias]

Originally Posted by the urban politician

British iam Bank Chooses Chicago For Global Headquarters

http://www.areadevelopment.com/newsi...illinois.shtml

Reading that, it sounds kind of like iam has similar goals to Ally Bank in Detroit, which hasn't had as big a role in downtown Detroit's revialization as Rocket Mortgage, but still has over 1,500 employees downtown there. If iam took off, its not impossible that they could eventually be that size in Chicago. 1,500 sounds like a lot of employees but it would be only about one quarter of one percent of all jobs in the Central Area.

[Justin_Chicago]

Clean-tech startup gets another $20 million

A Chicago-based company that turns cow manure into natural gas to power trucks has raised another $20 million.

AMP Americas creates biomethane from waste processed at Fair Oaks Farm, a large dairy farm about 90 minutes from Chicago. The six-year-old company, founded by former energy trader and real estate investor Nate Laurell, has built a network of 20 natural-gas filling stations from Indiana to Texas.

The money comes from Houston-based private-equity fund EIV Capital. Along with $20 million in expansion capital, about $27 million will go to replace an existing investor. Other backers also include Chicago-based energy investor Andrew Perlman.

The new money will be used to expand the business, including building its new gas-production facilities. Engineering and permitting work has begun on a second gas-production facility in the Midwest, says CEO Grant Zimmerman, who joined the company from McKinsey in 2015 and became CEO last year. He declined to name the exact location of the facility, which will be larger than Fair Oaks. A new refueling station in Buda, Texas, just outside Austin, for US Foods is expected to open in the fall.

Article: http://www.chicagobusiness.com/artic...ses-20-million

[Justin_Chicago]

HealthJoy plans to grow its team by 50 percent with $3M Series A

Healthtech startup HealthJoy has just announced a $3 million Series A round led by Chicago Ventures, with Social Capital, Sidekick Fund and GoHealth also participating. Several angel investors from health and tech companies like OurHealth and kCura also contributed.

The new round comes a little more than a year after HealthJoy raised $3 million in seed funding, which GoHealth led.

“HealthJoy boasts a powerful combination of a world-class team and groundbreaking technology with a proven approach to employee engagement, and unmatched cost containment results,” said Stuart Larkins, partner at Chicago Ventures, in a statement. “They are in a unique position to impact a huge market with well-defined pain points, and we are excited to help fuel their growth.”

HealthJoy’s mobile app makes it easier for people to navigate their healthcare plans. Users can find a doctor, get information on wellness programs and even find coupons to save money on medication. The experience is powered by an A.I. chatbot named Joy, which knows the ins and outs of a user’s insurance.

“We’re looking to bring on 15 people over the next six to nine months,” Holland said. "All those hires will be in Chicago.”

Article: http://www.builtinchicago.org/2017/0...ries-a-funding

[Justin_Chicago]

Reverb.com raises another $15 million

David Kalt never has to look far for investors at Reverb.com. Between partners and customers of the online exchange for guitars and other musical gear, there's a ready list of backers. That's how he was able to pull in $15 million from 65 investors, including Paypal co-founder and Chicago native Max Levchin, legendary Silicon Valley investor Roger McNamee, former Twitter COO Adam Bain and Jon Oringer, CEO of Shutterstock. They join existing investors Summit Partners as well as Cheap Trick's Rick Nielsen.

"Investors are constantly contacting me," said Kalt, whose other backers include David Lowery of the bands Cracker and Camper van Beethoven, as well as Groupon co-founders and Lightbank partners Eric Lefkofsky and Brad Keywell. "Music is an important part of a lot of people's lives."

He continued: "With Max (Levchin), we have a business relationship with Affirm (Levchin's consumer-credit startup). Reverb uses Affirm. As he's watched our growth over time, he said, 'Let me know when I can invest.' Jon Oringer of Shutterstock loves buying guitars on Reverb."

McNamee, who founded Elevation Partners with Bono, also is a serious musician. He was a customer of Kalt's retail guitar-and-equipment business in Lakeview, Chicago Music Exchange. "I look for people who can add value without adding another institutional investor to the (board)," Kalt said.

Article: http://www.chicagobusiness.com/artic...-million-round

[Justin_Chicago]

This Kohler director has a new side job in health care

Rachel Kohler has spent most of her career running parts of the family business, the high-end plumbing products company based in the Wisconsin town that also shares her name. Past a certain point in life, though, she wanted to do something besides sell luxury fixtures to wealthy people.

A few years ago, through her board-level connections​ at the University of Chicago—she earned her MBA there in 1989—she met Dr. Stacy Lindau, and a new avenue opened up. Lindau, a gynecologist and professor at University of Chicago Medicine, is the founder and chief innovation officer at NowPow, a health care startup in Hyde Park that links patients with complex medical problems to social services agencies and support organizations that can help them regain their health and stay out of the hospital. Kohler is co-owner and CEO.

The firm hires from the South and Southwest sides, says Lindau, 49. Indeed, the office staff is a youthful array of black, Hispanic and Asian faces. "We generate a tax base for this community," she says. "We have a chance of paying back our original investment." That investment was a grant of $5.9 million in 2012 from the federal Centers for Medicare & Medicaid Services' Innovation Center, a creation of the Affordable Care Act intended to jump-start fresh approaches to solving health care bottlenecks.

NowPow had 35 employees in June. By mid-July it had grown to 53.

Article: http://www.chicagobusiness.com/artic...hronically-ill

[Justin_Chicago]

Can AI help you find office space?

Chicago startup Truss raised nearly $8 million to help automate finding small amounts of office space. The company built a web-based virtual assistant called Vera that incorporates artificial intelligence to help tenants find offices of less than 10,000 square feet.

The virtual assistant helps with onboarding and narrowing down the search, and humans take over to schedule walk-throughs and negotiate the leases. Truss acts as the tenant broker, collecting a commission from the landlord. Because of the savings from automation, the company says, it's able to rebate 30 percent of the commission back to the tenant.

Article: http://www.chicagobusiness.com/artic...ts-7-7-million

[IrishIllini]

I think we have a chance to land the Amazon second HQ. 50,000 employees would be a hard find Atlanta, Dallas, or Austin. Given that the Texas construction industry is already short on labor, I can't imagine them being able to provide homes for possibly 50,000 new residents and their families in addition to filling current demand AND rebuilding the destroyed parts of Metro Houston. We'll see though.

How many UIUC grads do we think currently work for Amazon in Seattle? Chicago is a short drive away. Would make recruiting a breeze. I like our odds here. I've looked into it on some other forums and it seems like even people outside of Chicago are thinking we end up with this one.

This would be a great get for the city. Would really turn around perceptions and send the current development boom into a straight up frenzy.

[IrishIllini]

For us boosters who'd love nothing more than to see this HQ here, please take a few minutes to write an email to Amazon showing your support for a Chicago HQ. I think we've got a real shot here!

[email protected]

[Handro]

Originally Posted by IrishIllini

For us boosters who'd love nothing more than to see this HQ here, please take a few minutes to write an email to Amazon showing your support for a Chicago HQ. I think we've got a real shot here!

[email protected]

Sent

[Justin_Chicago]

Consulting firm to add 500 jobs in Chicago

West Monroe Partners, a Chicago management and technology consulting firm, plans to hire 500 employees in the city over the next five years.

The hiring push is part of a larger effort to recruit 1,000 nationwide. About 350 to 400 of the new hires will work in technology, said firm CEO Kevin McCarty. Many will be recruited directly from colleges like University of Illinois, Purdue University and Miami University in Ohio.

The firm currently leases 80,000-square-feet on the 11th floor at 222 W. Adams St. in Franklin Center and plans to add another 35,000 square feet in January. It has added a call center and acquired other firms specializing in Salesforce integration and health care IT.

The firm plans to add about 100 people a year in Chicago, McCarty said. About 450 of the 500 will be consultants, with the remainder working in the firm's HR, marketing, legal and finance departments.

Article: http://www.chicagobusiness.com/artic...obs-in-chicago

[Justin_Chicago]

U of C medical startup gets $3 million

Anyone who saw Explorer Surgical pitch at the University of Chicago's startup competition, the New Venture Challenge, a couple years ago could tell that the team was onto something. Its aim: using tablets and software to make the operating room run smoother and bring surgical procedure checklists into the digital age.

Now investors are getting onboard. Explorer raised $3 million, led by Aphelion Capital, a Bay Area venture fund focused on medical investments. Other investors include the University of Chicago, Elliott Management, M25 Group and HBS Angels. The company previously raised $1 million.

The U of C invested $500,000 in the latest round, the first investment out of its new $25 million fund for startups that is run by the team managing the university's endowment. Explorer got a previous investment from a $20 million innovation fund that makes seed-stage investments.

Article: http://www.chicagobusiness.com/artic...gets-3-million

[Justin_Chicago]

Planned warehouses could bring thousands of jobs to Pullman

Moonths before a Whole Foods distribution center is set to open in Pullman, developers are planning more than a million square feet of distribution space next door.

The project could bring thousands of jobs to the South Side neighborhood.

Minneapolis-based developer Ryan Cos. and nonprofit community developer Chicago Neighborhood Initiatives said they plan multiple industrial buildings totaling as much as 1.2 million square feet on land immediately north of the Whole Foods facility. U.S. Bank, which owns the land, is also involved in the project.

The exact number of jobs will depend on the type of tenants that lease space, but the project could potentially create as many as thousands of jobs, according to 9th Ward Ald. Anthony Beale.

"This is the culmination of a lot of our work to bring more jobs to the community," said David Doig, president of Chicago Neighborhood Initiatives. "In the last 30 to 40 years this area has lost tens of thousands of jobs, which has been a source of the area's decline. Jobs are important in rebuilding the area."

Construction of the more than 50-acre complex, called Pullman Crossings, could begin by next summer, said Tim Hennelly, Ryan's president for the Great Lakes region.

The warehouses will be along 103rd Street and Woodlawn Avenue, just west of Interstate 94 and Harborside International Golf Center.

Warehouses are the latest phase of the larger, 180-acre Pullman Park development to replace a former Ryerson Steel plant. Previous phases brought in the nearby Method Products soap factory and Gotham Greens rooftop greenhouse.

Article: http://www.chicagotribune.com/busine...01-column.html

[emathias]

This isn't Chicago-specific, but would be amazing if Chicago won it.

Amazon wants a second headquarters city. Chicago already got one headquarters from Seattle with Boeing, could it get a second (far more valuable) one?

Amazon HQ2 will be Amazon’s second headquarters in North America. We expect to invest over $5 billion in construction and grow this second headquarters to include as many as 50,000 high-paying jobs – it will be a full equal to our current campus in Seattle. In addition to Amazon’s direct hiring and investment, construction and ongoing operation of Amazon HQ2 is expected to create tens of thousands of additional jobs and tens of billions of dollars in additional investment in the surrounding community.

[k1052]

I know where they can get a running start with a few million square feet of available urban office space in one building...

Chicago will probably be solidly in the hunt for this. I presume Atlanta, Dallas, and maybe Denver as well.

[emathias]

Originally Posted by k1052

I know where they can get a running start with a few million square feet of available urban office space in one building...

Chicago will probably be solidly in the hunt for this. I presume Atlanta, Dallas, and maybe Denver as well.

I think Chicago will make a strong bid. I don't know that I'd put any city above about a 25% chance at this point, but Atlanta and at least one of the big Texas cities will almost certainly be on the short list. I don't think they'll choose a city as expensive as New York or SF, plus SF is still West Coast so not much regional diversity there. I think the whole West Coast is probably out, although I'm sure they'll vet anything they get from SoCal.

Philly or Pittsburgh might also be looked at if they pitch a good proposal, although I'm not sure how their international flight connections are, which is one of the few things Amazon mentions as wanting, so it must be pretty key in their decision. That helps Atlanta, Dallas and Houston - and Chicago. The research triangle in North Carolina is probably going to get a hard look, too.

In theory Minneapolis could get a look, but I think between the uber-harsh winters and the fact that it is culturally similar to Seattle it won't be the selection. I'm guessing they want a place that has a progressive feel because that's their corporate culture, but also want someplace that has some key differences from Seattle in order to be able to offer real choice to prospective employees. Chicago is pretty different from Seattle culturally, but is still deep blue. It's interesting they say they're considering a suburban campus given that they're so intensely urban in Seattle. Maybe they'll want to offer that as an option. Certainly Chicago can offer both excellent suburban and urban sites for them. Chicago probably has among the broadest possible types of sites for them to consider, which might be a key factor. Amazon could easily build their own namesake tower downtown, or do an urban campus as part of the North Branch projects underway, or they could take over the Old Post Office, or either build new or take over an existing suburban campus among those abandoned by companies coming downtown.

But holy cow, it will really give whatever city wins the bid an enormous boost. Both the actual cash spent and the prestige will be significant for any city short of SF or New York. Their payroll alone would boost Chicagoland's GDP by over 1.5%, and smaller metros the impact would be even bigger. Seattle Transit gets $43 million a year from Amazon, so similar monies to the CTA would be quite helpful.

[LouisVanDerWright]

They probably are considering suburbs because of the high costs in many urban areas these days. That is probably the driving factor for this decision: to get jobs that have become cost prohibitive in Seattle out to a more reasonably priced area. If it ends up here, it will be somewhere downtown as Amazon can get low costs and central location here.

Another thing we have going for us is a labor market able to absorb such staggering numbers easily. When you start talking urban areas less than a third of our size, 50,000 highly skilled professional employees becomes a struggle.

This type of situation is when you are glad Rahm is mayor, he's probably already got a trip planned to go schmooze the shit out of Bezos.

[k1052]

Originally Posted by emathias

I think Chicago will make a strong bid. I don't know that I'd put any city above about a 25% chance at this point, but Atlanta and at least one of the big Texas cities will almost certainly be on the short list. I don't think they'll choose a city as expensive as New York or SF, plus SF is still West Coast so not much regional diversity there. I think the whole West Coast is probably out, although I'm sure they'll vet anything they get from SoCal.

Philly or Pittsburgh might also be looked at if they pitch a good proposal, although I'm not sure how their international flight connections are, which is one of the few things Amazon mentions as wanting, so it must be pretty key in their decision. That helps Atlanta, Dallas and Houston - and Chicago. The research triangle in North Carolina is probably going to get a hard look, too.

In theory Minneapolis could get a look, but I think between the uber-harsh winters and the fact that it is culturally similar to Seattle it won't be the selection. I'm guessing they want a place that has a progressive feel because that's their corporate culture, but also want someplace that has some key differences from Seattle in order to be able to offer real choice to prospective employees. Chicago is pretty different from Seattle culturally, but is still deep blue. It's interesting they say they're considering a suburban campus given that they're so intensely urban in Seattle. Maybe they'll want to offer that as an option. Certainly Chicago can offer both excellent suburban and urban sites for them. Chicago probably has among the broadest possible types of sites for them to consider, which might be a key factor. Amazon could easily build their own namesake tower downtown, or do an urban campus as part of the North Branch projects underway, or they could take over the Old Post Office, or either build new or take over an existing suburban campus among those abandoned by companies coming downtown.

But holy cow, it will really give whatever city wins the bid an enormous boost. Both the actual cash spent and the prestige will be significant for any city short of SF or New York. Their payroll alone would boost Chicagoland's GDP by over 1.5%, and smaller metros the impact would be even bigger. Seattle Transit gets $43 million a year from Amazon, so similar monies to the CTA would be quite helpful.

There may be political problems with TX and NC though given the fetish both their legislatures have for passing socially regressive laws. That's not going to help their chances.

I agree that west coast is very unlikely. The east cost for cost and practicality probably doesn't work either.

An very internationally connected airport is surely a must have. So points for points for Atlanta and Chicago.

[Justin_Chicago]

ForeverCar raises $15 million in debt, equity

ForeverCar, an online provider of extended warranties for car owners, has raised another $15 million as it expands the business.

The Chicago-based company is going to offer financing of extended warranties to consumers, as well, launching ForeverCar Consumer Credit. It raised $12 million in debt financing, as well as $3 million from existing investors, including CMFG Ventures (the venture-capital arm of Cuna Mutual Group), Method Capital (formerly called KDWC Ventures), Fieldglass founder Jai Shekhawat and others.

ForeverCar raised $10 million about a year ago.

Article: http://www.chicagobusiness.com/artic...in-debt-equity