Illinois's so-called tech leaders have failed the state
sachinagarwal.com
sachinagarwal.com
That said, Chicago does very little (if anything) to support tech startups.
There is a "Chicago style" of startup --- 37signals and Threadless being the most visible examples --- with bootstrap backgrounds and ethics. There are things that Chicago could be doing to foster those kinds of companies, which don't require financier gatekeepers, grow organically, and are less speculative and volatile than valley shoot-the-moon companies --- which work well for San Jose only because there's always another shoot-the-moon company to fall back to when your current one fails.
Illinois could:
* Provide tax and fee incentives to technology startups
* Adopt policies that encourage development of tech-friendly office space outside of the loop
* Make its own internal processes more accessible to tech entrepreneurs, in the same manner as Data.gov, to create opportunities for companies to add value. Chicago's own IT infrastructure is, for instance, a shambles.
* Look for opportunities to work with local companies to showcase products and create calling cards for selling into the huge prospective client base in the Chicago economy.
Again, I do believe the per-capita data is the correct metric, as that accounts for differences in population. While no one would be surprised that California gets the most money, the per-capita figures might be of interest.
I'd love it if you wouldn't mind copy/pasting your comment to the post (even with the first graf). It is being passed around political circles in Springfield, and it'd be good for them to see it. The post is only looking at the data (which proves that the leadership has failed); it is deliberately silent on "why" and "how to fix". I want others to suggest those things before I take a swing.
Similarly, New York startup investments would dwarf Boston investments.
Money goes to San Francisco because of a feedback loop set in motion and sustained by a network effect. Fighting it is like fighting the tides. Illinois doesn't have the will or the wherewithal to compete with the valley on the valley's terms, and shouldn't bother trying.
No politician in Illinois has ever met a tax s/he didn't like -- and passed into law. The state budget is a mess, underwater by 11.5B, the governor was recently impeached for attempting to sell a vacant Senate seat, the City of Chicago is selling off it's expressways and parking meters for immediate cash, in Cook County we have some of the highest sales taxes in the nation, that budget is underwater too and state pensions pay more money to retirees than was paid to them during employment.
Now look at 37Signals -- they're a great company, in the city, hard-working, focused, and making money. They're tough-minded business people and for me, an inspiration to keep working hard on my idea.
But I have no illusions -- the risk in Chicago is always entirely your own.
Considering there are 50 states, this seems about... average?
Illinois averaged just 20th amongst the 50 states, DC, and Puerto Rico in startup dollars per capita for the 2001-2007 period
I think that means there are 32 other states/DC/PR doing worse...
On the other hand, Maryland is a bad example; Maryland has artificial incentives for VC dollars, because of fedgov contracts.
Illinois is the 5th largest state in the Union: http://en.wikipedia.org/wiki/List_of_U.S._states_and_territo... Based on the simplest ranking, Illinois should be fifth on the list. Being 20th is shameful. I'm not calling for mass resignations, but...