CHICAGO | Economic & Business Development

[Justin_Chicago]

Chicago Ventures closes $66 million second fund

Chicago Ventures has raised a $66 million second fund for early-stage deals.

It follows a $40 million fund raised three years ago. Chicago Ventures said it added Eric Lunt of Signal, Sam Yagan of ShopRunner, Brian Spaly of Trunk Club and Godard Abel of SteelBrick as advisers.

Chicago Ventures is the latest local venture firm to raise a follow-on fund—good news for startups, which often have struggled to find capital. Others that have raised new funds include OCA Ventures, Hyde Park Venture Partners and Corazon Capital.

Article: http://www.chicagobusiness.com/artic...e-capital-fund

[Justin_Chicago]

PowerReviews growing fast, finds new HQ

Matt Moog's purchase of PowerReviews continues to pay dividends for him and the Chicago tech community.

The company has doubled its headcount locally in the past year to about 135 and has outgrown its offices at 180 N. LaSalle St. PowerReview is moving to 50,000 square feet at 1 N. Dearborn St., more than doubling its current space.

It's a rare case of Chicago's tech community growing at the expense of San Francisco. Moog has shut down his company's San Francisco office and has either moved most of the jobs to Chicago or filled them with talent here, adding new positions.

Article: http://www.chicagobusiness.com/artic...t-finds-new-hq

[emathias]

I wonder how much the Cubs World Series appearance added to Chicago's economy. I mean, just in ticket sales, if the three games here averaged $1,000 per seat, averaging across people who paid face and people who had to buy on the secondary market, that's over $120 million just in ticket sales. Not to mention the million people spending extra money on beer and apparel and cab fares, etc.

[marothisu]

Originally Posted by Justin_Chicago

PowerReviews growing fast, finds new HQ

Matt Moog's purchase of PowerReviews continues to pay dividends for him and the Chicago tech community.

The company has doubled its headcount locally in the past year to about 135 and has outgrown its offices at 180 N. LaSalle St. PowerReview is moving to 50,000 square feet at 1 N. Dearborn St., more than doubling its current space.

It's a rare case of Chicago's tech community growing at the expense of San Francisco. Moog has shut down his company's San Francisco office and has either moved most of the jobs to Chicago or filled them with talent here, adding new positions.

Article: http://www.chicagobusiness.com/artic...t-finds-new-hq

I found this interesting from the article:

Moog kept both offices open, flying back and forth, but decided to wind down the San Francisco one. About a dozen people will continue to work from home in the Bay Area. Although Moog has long been a vocal proponent of the Chicago scene, co-founding Built in Chicago five years ago, he says his move was all about the business.

“For two years, I've had the experience of building a company simultaneously in San Francisco and Chicago,” he said. “Rents (in San Francisco) are twice as much as they are here. Hiring there is like a blood sport, with signing bonuses, recruiting fees and multiple offers. You're paying a 30 percent premium at least. The cost of living there is so high, with rents two or three times more than in Chicago.

“At the end of the day, it was expensive, hard to hire, hard to retain people. The talent is there, just like it is here. But there is more competition and more noise.”

PowerReviews isn't Uber or Postmates, but it's profitable and growing more than 30 percent annually, Moog says, though he declines to disclose the specific financials.

Though I have to laugh about "multiple offers" - that's normal Moog...that's normal.

[Justin_Chicago]

Massive South Loop data center ready for expansion

One of the world's largest data centers is about to get a whole lot bigger in the South Loop.

Digital Realty Trust, which owns the 1.1 million-square-foot Lakeside Technology Center, said it is planning to build a 12-story, 698,000-square-foot annex at 330 E. Cermak Road. That is just west of its existing facility at 350 E. Cermak.

The buildings will be separated by Calumet Avenue, but will be connected underground, according to the real estate investment trust.

At about 1.8 million square feet, the combined new facility would be larger than all but seven existing data centers in the world, all of which are in China, according to a recent study by IT Brand Pulse.

Article: http://www.chicagobusiness.com/reale...-in-south-loop


Caterpillar opens first Chicago office in Merchandise Mart

Caterpillar has opened its first Chicago office, an innovation-focused space in the Merchandise Mart the company hopes will attract young, tech-savvy talent.

The Digital and Analytics Hub officially opened Thursday.

Morgan Vawter, chief analytics director for Peoria-based Caterpillar and one of the hub’s first employees, said the company's first-ever Chicago office is an effort to boost talent recruitment.

“Part of it is the innovation pipeline: the connections to 1871 and the universities, being able to pull and tag those resources,” she said.

There are about 10 employees in the office, some from other locations, some who worked remotely in Chicago and some new hires. Vawter said the nearly 5,000-square-foot office should have 45 employees in about 18 months. Job openings are already posted online.

Article: http://www.chicagotribune.com/bluesk...020-story.html

[Justin_Chicago]

OCC expands, plans to move Chicago HQ

Options Clearing Corp. has been on a hiring spree, and now it needs new digs to accommodate the increased headcount, CEO Craig Donohue said in an interview.

Chicago-based OCC, which guarantees options trades across the industry, will move to the Franklin, the office complex formerly known as the AT&T Corporate Center, in the second quarter of 2018. The company will expand its footprint 43 percent, taking 105,000 square feet in the complex at West Monroe and South Wells streets.

The space increase closely follows its workforce expansion: The company has added 100 employees over the past year for a total headcount of 550 now, and OCC is still planning to hire another 80, with about half slated for information technology jobs.

Article: http://www.chicagobusiness.com/artic...ove-chicago-hq

[emathias]

Carlson-Wagonlit is creating a new Hotels unit in Chicago and hiring a good number of technical staff, per a LinkedIn post by their new CTO.

[marothisu]

Originally Posted by emathias

Carlson-Wagonlit is creating a new Hotels unit in Chicago and hiring a good number of technical staff, per a LinkedIn post by their new CTO.

Link?


Also:
Auto warranty startup raises $10 million

Mark Hodes just wanted to buy his daughter a used car as she was going off to school. Being a diligent dad who knew a thing or two about online shopping—he worked at TicketsNow, Threadless and NexTag—he went looking for an extended warranty. He didn't think much of the experience. He couldn't comparison shop, much less purchase an extended warranty online outside the dealership.

He launched ForeverCar.com two years ago to fill the needs of others like him. The Chicago-based company raised $10 million, led by the venture capital arm of CUNA Mutual Group. The Madison, Wis.-based company provides insurance and financial services products to more than 5,000 credit unions.

ForeverCar.com has tripled staff to 25 in the past year. It will use the money to add talent, particularly in data science and machine learning. Algorithms are crucial to recommending the right product for customers, Hodes says.

Hodes declined to disclose revenue, but he says ForeverCar.com collected several million in premiums last year, growing nearly fivefold

http://www.chicagobusiness.com/artic...-kdwc-and-cmfg

[emathias]

Originally Posted by marothisu

Link?
...

There's no press release (yet?), it's just I know that CTO and it was on his LinkedIn blog which I don't think is public.

[the urban politician]

^ Not really, a Chicago resident likely spent $1 when he otherwise may not have, at least that is my take

[HowardL]

As my 135 crossed Michigan and Wacker yesterday, I was thinking about the economic impact on Chicago but not the direct impact.

I am so fatigued by the consistent depiction of Chicago as a crime ridden, gang infested, struggling Rust Belt has-been that it was refreshing to see the city put in a positive spotlight due to the story of the Cubs.

This World Series has been some damn fine PR for the city.

How many high school seniors considering a Chicago university were watching? How many college seniors thinking ahead to their first job were watching? How many business leaders who had been considering Chicago for expansion or relocation were watching? How many trade show decision makers were watching?

And on and on.

[bnk]

Originally Posted by HowardL

As my 135 crossed Michigan and Wacker yesterday, I was thinking about the economic impact on Chicago but not the direct impact.

I am so fatigued by the consistent depiction of Chicago as a crime ridden, gang infested, struggling Rust Belt has-been that it was refreshing to see the city put in a positive spotlight due to the story of the Cubs.

This World Series has been some damn fine PR for the city.

How many high school seniors considering a Chicago university were watching? How many college seniors thinking ahead to their first job were watching? How many business leaders who had been considering Chicago for expansion or relocation were watching? How many trade show decision makers were watching?

And on and on.

I think this is a very good point. The positive PR is almost never measured by economic experts that love to poo poo the economics of professional sport teams.

In the Short term Cleveland my have gained more in the local economy than Chicago but in the long term The winners take the spoils. I do indeed believe there is long term economic benefits of this WIN.




http://fox8.com/2016/11/03/millions-...-series-games/

Millions spent in downtown Cleveland during World Series games


POSTED 6:56 PM, NOVEMBER 3, 2016, BY MATT WRIGHT

CLEVELAND - The World Series wasn't a total loss for Cleveland. From bars and restaurants to hotels, local businesses cashed in on tens of thousands of fans watching the Indians face the Chicago cubs in downtown Cleveland.

The Indians estimated each postseason home game pumped $3 million into the downtown Cleveland economy, and that number could be even higher for the four World Series games.

Flannery’s Pub operations manager Nikki Sullivan said sales at the East 4th Street hot spot tripled during World Series games, in line with the NBA Finals.

“It's been great, not just for bartenders, managers, restaurant owners. It's been great for all of the downtown economy,” she said.

Part of the reason could be the number of Cubs fans that traveled to Cleveland.

“One Cubs fan told me it's cheaper for them to come to Cleveland, buy a ticket, get a hotel room, party, than it is to go to a game back in Chicago,” Sullivan said.

Two thousand hotel rooms were added downtown ahead of the Republican National Convention in July and all of them were booked for the World Series, with some charging three times their normal rates.


“The Cubs brought a lot of travelers into downtown. We saw significant occupancy, significant in terms of daily rates for hotel rooms. Our restaurants were packed. Our parking lots were packed,” said Joe Marinucci, Downtown Cleveland Alliance President and CEO. “All of the hotels downtown and many of the hotels within the system outside of downtown were fully booked.”


...

The long-term impact due to increased visibility for Cleveland is hard to measure after a remarkable year for events downtown.

...

[Justin_Chicago]

The city gets a short term public morale boost and some national attention. No new jobs are getting created from this win. You have to ask yourself if this is a temporary or permanent difference in local consumption. Permanent is what counts and that only occurs if the Cubs increases tourism to the city indefinitely. It seems like we are taking a time value of money argument here with the inflow of spending. I can see a lasting benefit if the city has a one-time budget surplus and either 1) pays down debt/pension liabilities = lower cost of financial distress or 2) reinvests the surplus in schools/education = improves the education and global competitiveness of the future work force.

Speaking of public morale, the Chicago Bulls has a new public campaign to highlight local kids during game time outs... but each announcement starts with the 600+ murders on the big scoreboard. That is an easy way to diffuse any Cubs uplift. Air leaves the arena once they publicize it. This is why I don't buy the city humming argument. It is very easy to feel down about the current state of things. Maybe people outside the city can feel good when they do not deal with despair in the local news on a daily basis.

Cubs winning is not going to force TheUrbanPolitician to move into the City or spend 10% more money here permanently. I eagerly await TUP to become a +1. Maybe when he becomes an empty nester. Commit my friend!

[the urban politician]

Originally Posted by Justin_Chicago

Cubs winning is not going to force TheUrbanPolitician to move into the City or spend 10% more money here permanently. I eagerly await TUP to become a +1. Maybe when he becomes an empty nester. Commit my friend!

You guys always make fun of me for being a suburbanite but the older forumers here know that I was very much a subway riding, renting, car-lite resident of east coast cities for years. Truth is, I BADLY want to live in Chicago. But I just can't, the jobs in my industry in Chicago suck--they pay less and the lifestyle is worse. And that is a very important consideration. I would totally raise my kids in the city. I already own property in the city and I intend to own more.

Plus my wife, once a lover of city life, is starting to become a suburbanite. So it's an uphill battle for me!

[HowardL]

Originally Posted by bnk

I think this is a very good point. The positive PR is almost never measured by economic experts that love to poo poo the economics of professional sport teams.
...

And this. This is what I'm talking about. No matter how fleeting it may be, positive associations are being made with this city ...

From The Guardian

Ireland clinch first ever win over New Zealand to end All Blacks’ record streak

In a week where the Chicago Cubs finally put the curse of the Billy Goat to bed, there was no shortage of people here who thought Ireland were about to do something similar with the monkey on their back. In Ireland’s case that creature is all black, for New Zealand are the only team they had played but never beaten. This confidence was based not on anything as tangible as form, rather on the unique atmosphere that has gripped this city since the Cubs’ World Series win on Wednesday night. The question was not why, but why not?

From The Independent

In Pictures: The best images from Ireland v New Zealand in Chicago

When was the last time that Chicago made positive mention in either of these countries' media?

[LouisVanDerWright]

Was at the All Blacks and Ireland game today, the crowd was probably more than 50% foreign, mostly Irish, but I heard a lot of different accents (Again a shit ton of Irish accents) and the group in front of me in line to go through the metal dectors came down from Canada for it. The atomusphere got pretty awesome as the Irish team held strong towards the end and then ground out a last try to ice the game.

Again, it's not a "permenant difference in local consumption", but if you have a rugby game that results in a historic victory for Ireland and let's say 500,000 diehard Ireland fans watch it or are at the game, if even 5% of them are motivated to swing through Chicago some day, that's a huge boost. But nothing ever happens in vacuum, if you have 10,000 more people visit Chicago over the next five years, that can become 10,000 people each recommending Chicago to their friends in turn. Again, not necessarily a concrete capital improvement directly resulting from a single event, but the positive ripples from such things add up quickly in my opinion.

Also the group I was with was a development authority from Ireland's government that recently opened a new office here because they've noticed Chicago has become the emerging hub for back office functions for massive tech companies in much the same way as Dublin. They've had offices in NYC and SF for years, but have decided to open a non-costal office because of what they've heard of Chicago's tech scene and consolidation of large corporate HQ's.

[Justin_Chicago]

Originally Posted by the urban politician

^ Not really, a Chicago resident likely spent $1 when he otherwise may not have, at least that is my take

Economics would say that the person would decrease their consumption later on. Consumer Output(Y) = Consumption(C) + Savings(S). Maybe that person would spend one less dollar dining out this weekend. Otherwise, their savings rate will have to decrease, which would have long run implications on wealth and output.

The City of Chicago concentrates significant resources on increasing tourism because unless our city population grows (or wealth rises), it is the only way to create an economic boom. The George Lucas Museum (and the tourism it would attract) was important for this reason.

I rode a Divvy bicycle by Wrigley this morning and there are still 100-200 people taking photos in front of the World Series Champions sign. Most of them appear to be visiting from outside the city, so I suspect we will have a nice small economic boom as they shop and dine in the Lakeview area and vendors are city residents.

On an unrelated sporting note, I wish the Chicago Fire would move to a new stadium on the Southside (Bridgeport) or Westside (Garfield).

[ithakas]

Originally Posted by Justin_Chicago

On an unrelated sporting note, I wish the Chicago Fire would move to a new stadium on the Southside (Bridgeport) or Westside (Garfield).

Interesting thought. Would be really cool if they found a place to build a stadium near the Central Manufacturing District.

[LouisVanDerWright]

Originally Posted by Justin_Chicago

Economics would say that the person would decrease their consumption later on. Consumer Output(Y) = Consumption(C) + Savings(S). Maybe that person would spend one less dollar dining out this weekend. Otherwise, their savings rate will have to decrease, which would have long run implications on wealth and output.

But economics is not a zero sum game, wealth cam be added when new capital is created. At its most base level capital results from an investment of individual effort or time. So though a fan may have spent money now that they would have otherwise spent later, the real boon comes from an adjustment of their confidence and motivation. The real benefit of an occurrence like this is that it is likely putting a lot of people in a good mood and those individuals will likely step up their output and productivity as a result.

So yes this may mean more success for tourism businesses (there were about a dozen tour boats jam packed loitering at the Michigan Ave bridge laying on their fog horns yesterday) or more business for bars in lakeview, but the real benefit is likely a bump in moral for all the workers and business owners in Chicagoland. Let's say everyone puts in 5% more effort over the next month, that's an almost 1% annual output boost in a regional economy that generates half a trillion a year. So you can see how the numbers could get pretty big pretty quick.

I believe there will be some impact along these lines too because all I've heard since they won is people chatting up a storm about it or humming go cubs go as they walk down the street.

[Justin_Chicago]

Chicago Fire has two designated player slots open and the third draft pick, right? The team should improve dramatically this summer with that firepower available. This table shows me that an average team can bring in 20,000+. Maybe bring the MLS team in the city and give Bridgeview the minor league NASL or USL team. One can wish. I am sure ownership or prospective owners are figuring things out as popularity grows.