CHICAGO | Economic & Business Development

[Handro]

Wow this is fantastic news, I don’t know much about the guy but if he can back up all his “civic-minded” talk (and his other philanthropic endeavors are a good sign he might) this could be a huge deal.

Swiss Billionaire Joins the Bidding for Tribune Publishing

https://www.nytimes.com/2021/03/27/b....co/wcSNNr7PYY

An octogenarian Swiss billionaire who makes his home in Wyoming and has donated hundreds of millions to environmental causes is a surprise new player in the bidding for Tribune Publishing, the major newspaper chain that until recently seemed destined to end up in the hands of a New York hedge fund.
...

“He made that bid because he wants The Baltimore Sun,” Mr. Wyss said, referring to Mr. Bainum. “I said, ‘Yeah, that’s fine. And I have to make The Tribune even better than what it is now.’”
...

Mr. Wyss said he would be a civic-minded custodian of The Chicago Tribune. “I don’t want to see another newspaper that has a chance to increase the amount of truth being told to the American people going down the drain,” he said.

Anything to keep it out of the hands of Alden and crumbling to a pathetic shell of a newspaper is good news in my book.

[marothisu]

^ That's good - hopefully if they get the bid they'd be able to do that. Would be cool if they bought places in Chicago as well - in that case I'd be interested if they'd do any philanthropy in the city even if just temporary residents.

[SIGSEGV]

I don't know why these articles always assume that everybody who lives downtown works downtown, as if that's the only possible reason someone may want to live downtown.

[Rizzo]

Originally Posted by marothisu

The article doesn't mention anything that hasn't already been discussed here. Downtown got hit hard by the pandemic and also rioting/looting. There was a sizable outflow to suburbs or other areas of the city from there. Some buildings are seeing an uptick in leasing again (talked about this the other day - there's an article from Crains 2-4 weeks ago talking about it). There's some unanswered questions about how many companies will return to the office downtown and all that, but some developers are betting big on a recovery. They even talk about how some young people moved back with their parents, but are getting tired of them and we'll probably see them move back. Young couples/families they say are gone, but at least the family aspect for a lot of people is kind of the normal case any year. Unless you are rolling in a sizable amount of money, it's not cost effective to raise a few children in a luxury downtown condo. A lot of people can afford it, but a lot of people who lived downtown, get married, and have kids cannot afford it (or don't want to afford it). Not really different than at any other time in downtown's relatively expensive gentrified history though.

My own bet is you'll see an uptick in activity this summer/early fall especially as a large percentage of the population gets a vaccine, and companies return to the office (hybrid or full on).

I know a few people who work for companies that have no office at the moment. Their leases ended in 2020 and they told their employees to keep working from home until there’s a better understanding of things toward the end of the pandemic. They’ll probably sign new leases and build out brand new offices later this year.

[marothisu]

By my data, Chicago companies have receieved at least $1.75B in funding so far this year with ThoughtWorks accounting for $720M of that. All of last year totaled $2.8B, the top year in the last 15 or so years. Will be interesting to see if 2021 can top that.

Cameo's new funding bumps value to $1 billion

https://www.chicagobusiness.com/john...alue-1-billion

Cameo, an app that allows people to order video shout-outs from celebrities, raised $100 million and is now valued at about $1 billion.

The Chicago company saw its popularity grow during the pandemic, as cooped-up customers and celebrities looked for ways to break the monotony of lockdowns.

New investors include E.ventures and the investment arms of Google and Amazon, as well as Softbank, Chicago-based Valor Equity Partners and skater Tony Hawk.

..

The company did more than $100 million in transactions between celebrities and customers. Cameo gets a 25 percent cut. It now employs about 200 people.


Cameo will use the funding to continue developing its product. Since it was launched four years ago by Steven Galanis and two friends, the company also has introduced video calls with celebrities, as well as endorsements for businesses.

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OppFi Raises $50M in New Funding Following Rebrand, SPAC Announcement

https://www.builtinchicago.org/2021/...ses-50m-hiring

On Monday, Chicago fintech company OppFi announced that it received $50 million in a corporate credit facility from Atalaya Capital Management.

This new capital comes at an exciting time for the company. Last month, OppFi announced that it was taking the steps to become a publicly traded company through a SPAC merger with Joe Moglia’s FG New America Acquisition Corp. And at the same time, the company also announced that is was rebranding from OppLoans to OppFi — short for Opportunity Financial.

..

OppFi said that it plans to use the proceeds from this credit facility to refinance some of its debts, which could be related to its plans to go public. The company also said that it plans to use some of the facility as growth capital.

The company has created a tech platform that helps lenders provide loans to people who wouldn’t normally qualify for a loan.

..

So far, OppFi has helped issue over 1.5 million loans.

The company has been using its success in providing loans to explore other financial services too. In December, OppFi launched Salary Tap, which helps people repay loans through automatic salary deductions. The company is also working on its own credit card product, the OppFi card, which is expected to launch later this year.

The new funding will help OppFi expand these new services, and grow as a company.

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Some small add onto the film industry

PRG Opens Digital Studio in Chicago, Built for Area Entertainment and Corporate Production Needs

https://www.prnewswire.com/news-rele...301258609.html

Production Resource Group, LLC. (PRG), known for its technological innovations and production support for TV/Film, live entertainment, and events has announced it has opened a new digital studio in the McCook area of Chicago, adding to its network of studios in Los Angeles, Las Vegas, Nashville, New York, and Orlando. Through these studios, PRG is continuing to support brands, artists, designers, creators, and business leaders by providing the space and technology to create and connect to audiences. These studio environments are developed for pre-recorded and live content and are built for easy, fast, efficient production at any scale, from livestreamed corporate presentations and commercial shoots to music events - all within COVID guidelines.

..

The Chicago digital studio boasts over 3,000 square feet with a 45 x 33-foot stage

[marothisu]

Medical device startup raises $36M to give surgeons ‘x-ray vision’

https://www.bizjournals.com/chicago/...e-surgeon.html

Chicagoland medical device company raised a new round of funding as it works to help physicians better visualize their patients during surgery.

Augmedics announced Tuesday that it raised $36 million in a Series C round led by H.I.G. Capital, Revival Healthcare Capital and Almeda Ventures. Other investors include HCA Healthcare's Health Insight Capital, as well as existing investor XR Invest.

The startup has now raised $63 million to date. Augmedics last raised $15 million in June.

Based in Arlington Heights, Augmedics’ xvision Spine system is a device surgeons wear on their heads during spinal operations that allows them to see their patient better. Using augmented reality, the device lets doctors visualize the 3D spinal anatomy of a patient during surgery, giving them something similar to “x-ray vision,” Augmedics said. With the device, surgeons can accurately navigate instruments and implants while looking directly at the patient, rather than a screen.

The company's xvision Spine system received clearance in 2019 from the U.S. Food and Drug Administration, which allows it to be used in spinal surgeries. In 2020, the system was first used in a spinal surgery procedure by Johns Hopkins University surgeons. By the end of 2020, more than 250 spinal surgeries in the U.S. were performed with Augmedics’ system, the company said.

With the new financing, Augmedics said it will expand throughout U.S. health care systems and obtain clearance to sell the device in Europe.

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Startup using psychedelics to treat brain injuries raises more funding, plans to go public

They also added George Steinbrenner IV to the board.

https://www.bizjournals.com/chicago/...in-canada.html

A Chicago life sciences startup led by a former Blackhawks player that uses "magic mushrooms" to treat brain injuries is preparing to go public in Canada.

Wesana, founded by two-time Stanley Cup champion Daniel Carcillo, announced Wednesday that it raised C$16.1 million (roughly $12.8 million U.S. dollars) in fresh funding in advance of a planned public market debut.

..

The startup raised a $4 million round earlier this year.

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Founded in 2020, Wesana aims to treat traumatic brain injuries (TBI) with the use of psilocybin, the naturally occurring substance found in magic mushrooms that provides a psychedelic effect. The startup was born out of Carcillo's experience using psilocybin to treat his own brain injuries after years of head trauma playing in the NHL. He said psilocybin worked better than any other form of treatment.

Wesana said it will use the new investment to fund the preclinical and clinical development of its psychedelic-assisted therapy to treat TBI. The company's first drug pipeline will look to focus on TBI-related depression, Carcillo said.

..

Several companies and universities are researching the therapeutic potential of psychedelic drugs such as psilocybin. In 2019 John's Hopkins opened the Center for Psychedelic and Consciousness Research, where it's studying the effectiveness of psilocybin as a therapy for opioid addiction, Alzheimer's disease, PTSD and other disorders.

[Handro]

Lots of great stuff. Any idea how this amount of funding compares to other US cities? Wondering if Chicago pulling at its weight in startup funding

[marothisu]

Originally Posted by Handro

Lots of great stuff. Any idea how this amount of funding compares to other US cities? Wondering if Chicago pulling at its weight in startup funding

I think yes - at least city proper wise, Chicago is something like $1.8B now. By comparison, at least in the city, Los Angeles was under $800M. Meanwhile, SF proper companies are at $9.5B so far this year....

[marothisu]

Tock was sold to SquareSpace for $400M today. Team remains in Chicago and Nick Kokonos is still the CEO.

[twister244]

Originally Posted by marothisu

I think yes - at least city proper wise, Chicago is something like $1.8B now. By comparison, at least in the city, Los Angeles was under $800M. Meanwhile, SF proper companies are at $9.5B so far this year....

That's amazing to hear! Hopefully the trend continues over the next decade. Seems like renewables continued tech growth may be the next propellants moving forward.

[marothisu]

Aclaimant, a Chicago insuretech startup, raises $15M

https://www.bizjournals.com/chicago/...aises-15m.html

Aclaimant, a Chicago startup making a platform for employers to report workplace injuries, has raised another round of funding as it works to ramp up marketing and acquire more customers.

The startup announced Thursday that it raised $15 million in Series B equity and debt funding in a round led by Next Coast Ventures.

..

The new financing brings Aclaimant’s total funding to more than $20 million. The startup last raised $10 million in 2020.

Founded in 2013 by David Wald and Michael Schultz, Aclaimant’s software helps companies improve the risk and claims management processes after a workplace injury. The platform caters to multiple industries, including construction, manufacturing, staffing, real estate and hospitality.

The company says it saw record growth in 2020, with monthly active usage increasing by more than 400% last year. Aclaimant participated in Moderne Ventures’ Passport Program accelerator last year. The seven-month program mentors real estate, finance, insurance, hospitality and home services startups.

..

The new funding will be used to hire more employees, find additional clients, and ramp up sales and marketing efforts.

[marothisu]

These don't create a lot of permanent jobs but it's still good to see, I guess. Nice boost in the temporary construction jobs though.

Microsoft Plans $200M Data Center Development Near Chicago

https://www.bisnow.com/chicago/news/...chicago-108102

Microsoft is building two new data centers outside of Chicago, according to planning documents filed this week.

The data center facilities will occupy a 53-acre site in Hoffman Estates, and be built in two phases, according to the plans. The development will span about 400K SF in total once completed.

Microsoft plans to invest over $200M in the project and says it will create 280 construction jobs and 20 permanent data center jobs once it is ready to open in the fourth quarter of 2022.

The company is also building a $123M data center campus in nearby Elk Grove Village.

..

According to CBRE, Chicago boasted total data center inventory of 278 megawatts with another 16.2 MW under construction as of the second half of 2020. It is the fourth-largest data center market in the U.S., behind Northern Virginia, Silicon Valley and Dallas-Fort Worth.

[bnk]

Originally Posted by marothisu

These don't create a lot of permanent jobs but it's still good to see, I guess. Nice boost in the temporary construction jobs though.

Microsoft Plans $200M Data Center Development Near Chicago

https://www.bisnow.com/chicago/news/...chicago-108102

[Oh know there is more jobs still to work and mantain the sites after their huge construction.



BTW

According to CBRE, Chicago boasted total data center inventory of 278 megawatts with another 16.2 MW under construction as of the second half of 2020. It is the fourth-largest data center market in the U.S., behind Northern Virginia, Silicon Valley and Dallas-Fort Worth.

OK can understand Northern VA and DC which is part of the capital of the usa


I understand Silicon valley getting tons of data, but were is NYC in this ranking? What about wall st and the nano seconds that count for speed in data.


Just thinking about it NYC should be in the top 5 at lest.

[marothisu]

Originally Posted by bnk

I understand Silicon valley getting tons of data, but were is NYC in this ranking? What about wall st and the nano seconds that count for speed in data.


Just thinking about it NYC should be in the top 5 at lest.

That represents a mere, small fraction of the entire industry. There is MUCH MUCH MUCH more data, applications, etc outside of what you are talking about. And when you are talking about geographical dispersion of customers, you don't always just pick the obvious. If you have a bunch of NE customers for example, you might pick a place in CT or PA, or maybe central NJ for one of your data centers. There are data centers for massive companies in places you would never expect. Like in small towns or cities in Ohio. Places like Chicago and Dallas happen to be well situated geographically for their respective regions with regards to where customers are.

Anyway, stuff like NYSE is such a small amount of data, apications, etc on the grand scheme of things. NYC is still 6th, but being the largest metro area in the country doesn't mean that is where a data center always goes even for the region.

[sixo1]

Ingersoll Machine Tools launches major expansion at its Rockford campus to build Giant Magellan Telescope mount. The investment will create 75 new jobs.

[Source]

[left of center]

I'm actually fairly surprised we are behind DFW. I didn't even think they would be top 5 honestly. I wonder how close we are to them in megawatts. Maybe the MSFT investment will put us over the top and knock them out of 3rd place?

[sixo1]

^^^^^^

Recall:

Originally Posted by sixo1

Chicago region ranks number 2 in the world (behind Northern Virginia) for best data center market.

[Source]

So maybe you are right.

[marothisu]

What does "best" mean though? I think there's a lot of criteria involved in that, and is rather subjective. It doesn't always just mean the most of something

[jpIllInoIs]

Originally Posted by left of center

I'm actually fairly surprised we are behind DFW. I didn't even think they would be top 5 honestly. I wonder how close we are to them in megawatts. Maybe the MSFT investment will put us over the top and knock them out of 3rd place?

I think Chicago is #2 behind NoVa

Northern Virginia keeps top spot in Cushman & Wakefield's latest index, US holds six of the top 10 spots

February 09, 2021 By Peter Judge

Northern Virginia and Chicago have taken the top two spots in the world's top 10 data center markets, but US dominance has taken a knock as Sydney enters at number three in a subjective list prepared by Cushman & Wakefield.

[marothisu]

FuboTV hiring over 100 in Chicago for new sports gambling division

https://www.bizjournals.com/chicago/...-division.html

Television streaming company FuboTV is launching a sports gambling division that will be headquartered in Chicago, and it plans to hire over 100 employees in the next three months.

FuboTV, a live TV streaming service that launched in 2015 and went public in 2020, is launching its new Fubo Gaming subsidiary in Chicago in the fourth quarter of this year. The company first announced the launch of Fubo Gaming in January after acquiring Chicago startup Vigtory, a sports betting company.

The Vigtory acquisition will allow FuboTV to launch its own sportsbook, putting it in direct competition with DraftKings, FanDuel, Barstool and other online sports betting operators. The entire 15-person Vigtory team has joined FuboTV, and co-CEOs Sam Rattner and Scott Butera have joined Fubo Gaming as chief operating officer and president, respectively.

Rattner, who founded Vigtory in 2019, said the company plans to hire over 100 employees in Chicago in the next 60 to 90 days, including over 60 engineers. The company recently signed a roughly 30,000 square-foot lease at 1 N. Dearborn St. in the Loop, Rattner said.

..

FuboTV's standalone sports betting app will look to stand out by incorporating live streaming, Rattner said, allowing users to watch and bet from the same platform. The company is also developing a loyalty feature that allows users to earn rewards towards things like sports merchandise and tickets to live games. Fubo can also provide gamblers with other perks not found in traditional bettings apps, such as subscriptions to NFL Red Zone or NBA TV.

Fubo Gaming expects to be live in several states by the time its app launches later this year.