tech
Chicago’s Tech and Startup Scene Accelerates with New Investments and Incubators
Local accelerators and corporate investments are driving a surge in Chicago’s innovation economy this summer.
How we reported this
Chicago is witnessing a rapid expansion in its tech ecosystem as new funding rounds and incubator programs breathe life into the city’s startup landscape. This week alone, two major developments underscore the momentum: Hyde Park-based venture fund Elevate Capital closed a $75 million second fund focusing on early-stage tech ventures, and 1871, the Loop’s premier tech incubator, announced a partnership with United Airlines to launch a travel tech accelerator starting this fall.
Why This Matters Now
The timing of these developments is significant as Chicago aims to solidify its position among the nation’s top technology hubs. After the setbacks of the pandemic-era slowdown, the city’s innovation sector is rebounding strongly, supported by a growing talent pipeline from institutions like the University of Chicago and Northwestern University. This resurgence is critical not only for economic growth but also for creating high-paying jobs and retaining local STEM graduates who often migrate to coastal tech centers.
Local Landmarks in Tech Growth
1871 at 222 W. Merchandise Mart Plaza, known as the city’s flagship technology incubator, will host the newly minted travel tech accelerator. In collaboration with United Airlines, this program will provide startups with mentorship, pilot opportunities, and access to a testing ground in United’s operations headquartered in Willis Tower. At the same time, Elevate Capital’s $75 million fund, the largest it has raised so far, is based in Hyde Park and focuses on startups led by underrepresented founders, supporting ventures in fintech, AI, and health tech.
Other notable initiatives include the Illinois Technology Association’s "Tech Rising" summit scheduled for September, which will spotlight Chicago-based startups securing Series A and B funding. Plus, the recent expansion of the Illinois Innovation Network is channeling state resources into tech hubs in neighborhoods such as Logan Square and the West Loop.
According to the most recent data from ChicagoNEXT, the city’s innovation arm under World Business Chicago, local tech employment grew by 7.8% in the first quarter of 2026, with software developers and data scientists leading the hiring surge. Startup funding in the Chicago metro area topped $1.2 billion in the first half of the year, a 15% increase over 2025’s same period, fueled largely by venture capital and corporate partnerships.
These figures reflect a broad-based confidence among investors and companies betting on Chicago’s diverse economy and infrastructure. The influx of funds and incorporation of corporate programs like United's accelerator underscore a shift toward deepening industry connections within the tech ecosystem.
Looking ahead, aspiring founders should keep an eye on 1871’s application window for the fall accelerator, opening on July 20. Additionally, startups focusing on travel, logistics, and AI-enabled enterprise solutions may find unique pilot opportunities through United’s program. For those seeking capital, Elevate Capital’s upcoming quarter-end pitch events represent a prime chance to engage with early-stage investors specifically targeting Chicago-based founders.
With these developments, Chicago is carving out a distinct tech identity that combines strong local support with strategic corporate engagement, making it a fertile ground for innovation this summer and beyond.