Governor Quinn and 1871 Announce Major 25,000 Square Foot
Expansion
Move Will Grow Chicago’s Digital Entrepreneurship Hub by 50
Percent This Summer
CHICAGO – Governor Pat
Quinn today was joined by 1871 CEO Howard A. Tullman and members of the
Chicagoland Entrepreneurial Center board of directors to announce that 1871
will grow by 25,000 square feet this summer. The $2.5 million expansion will grow
1871’s size by 50 percent and is the latest major accomplishment for the
innovative co-working space, which just had its second birthday.
“In just two short years,
1871, its member companies and alumni have created more than 1,000 jobs,”
Governor Quinn said. “1871 has become a true entrepreneurial hub for our state
and its expansion means more career opportunities for the hardworking residents
of Illinois. We look forward to a strong partnership with 1871 as we continue
to grow our start-up community and support our innovators.”
The expansion project will
allow 1871 to house larger companies that have outgrown their current space but
want to continue to grow within the 1871 environment. It will also allow
1871 to create, grow or expand incubators and accelerators in the critical
areas of food technology, real estate technology, education technology, financial
technology, startup engineering and women-owned technology businesses. In
addition, the new space will house venture capital firms looking to
invest in local companies, and will serve as a launching pad for existing
businesses.
"This expansion is
important to 1871's commitment to continue raising the bar and providing the
most extensive facilities and resources for our member companies," 1871
CEO Howard A. Tullman said. "It also confirms the Governor's continued
confidence that building smart new technology businesses is the best way to
keep adding critical jobs to the Illinois economy."
The Illinois Department of
Commerce and Economic Opportunity (DCEO) is providing the $2.5 million
investment as a result of 1871’s strong contributions to job growth. The
investment will allow construction to begin this month. The expansion should be
complete and open in mid-October.
1871 was launched by J.B. Pritzker and
the Chicagoland Entrepreneurial Center in partnership with the State of
Illinois on May 2, 2014. Using an initial $2.3 million grant from DCEO, the
original space was constructed at an initial size of 50,000 square feet.
Additional space was reserved for the expected expansion of 1871 as it grew and
that is the space now being added. To date, 1871
has graduated nearly three dozen companies, who collectively have created
nearly 400 jobs and raised nearly $40 million in venture capital funding. 1871
has hosted dozens of high-profile visitors, including former British Prime
Minister David Cameron, entrepreneur and investor Mark Cuban, Steve Case, founder of AOL, and Facebook COO
Sheryl Sandberg.
"1871 has become the
most energetic gathering place for the digital community and the best place to
grow and expand a startup technology business in Chicago," J.B. Pritzker,
Pritzker Group Managing Partner and 1871 Founder said. "Thanks to Governor
Quinn, this expansion will help 1871 continue to advance its mission and
further define Illinois as one of the world’s fastest growing large tech
startup communities."
“This expansion shows that
our investment in the next generation of Chicago businesses is paying off,”
Chicago Mayor Rahm Emanuel said. “The jobs of tomorrow will come from
the types of small businesses growing at 1871 today, and this expansion will
allow even more entrepreneurs and businesses to locate here, bringing new jobs
with them and supporting the city’s economic growth.”
COMMENTS OF 1871 CEO HOWARD TULLMAN
This is a very exciting time for 1871 as we unveil our next
major expansion. We’ll have new incubator spaces, new partners and sponsors,
new training programs and even some room for our growing family of alumni
companies. And you’ll hear more about that in a few moments.
As you know, entrepreneurs live in a fast-forward world where
we’re always looking ahead. It’s an occupational disease. Sitting still is
never part of the plan because today, if you’re not moving forward, you’re losing
ground to the fast followers and copycats who are running as fast as they can
right behind you.
The truth is that there’s never a finish line – just the next
mountain to climb. And, at 1871, we want to preserve that scrappy mindset and
the creative energy, tension and drive that accompany it to keep raising the
bar. It’s great to be the largest digital startup hub in the country, but our
real goal is to continue to be the best.
To succeed in the business of building new businesses, you
need vision, velocity and two more things. You need a steadfast faith and a
firm foundation to build upon. We wouldn’t be standing here today without the
vision of JB Pritzker and the faith of Governor Quinn. I want to thank them
both personally and on behalf of everyone here at 1871 who benefits every day
from their continuing efforts on our behalf.
Starting a new enterprise; taking a big chance on a new idea;
going where no man or woman has gone before – these are scary things to do.
And to succeed, one quality is essential – your faith has to be a lot stronger
than your fear. Governor Quinn has been (and will be) called a lot of things –
and I’m proud to call him a good friend – but I think that he’s proudest of
being called a man of great faith. Having him in our corner and having his agreement
today to help fund our expansion is just the latest demonstration of his
courage, commitment, and confidence in the future of our state and his firm
belief in the continued contribution which 1871 will make to that future. So
thank you Governor Quinn.
JB Pritzker couldn’t be here with us today (although he’s
here for different reasons almost every week), but I wanted to again
acknowledge that – while so many good things seem obvious and even inevitable
in retrospect (that’s the beauty of hindsight), it’s a lot tougher to have the
generosity and the guts to turn your good ideas into the kind of concrete
commitments that it took to get this place off the ground. JB did that for us.
Lots of people helped and a lot more every day are anxious to become a part of
1871 now that it’s a roaring success – but way back when – when it counted most
– and when no one knew how things would turn out – JB was the one who stood up
for the tech community and made 1871 happen. So thank you JB.
One more thank you as well - to the team at The Mart. With
1871, Moto, Braintree, Razorfish, Allscripts, CCC, etc. – you’d think this
enormous and historic place had always been front and center in the city’s
technology initiatives and Ground Zero for what the Mayor calls Startup City.
But the truth is that The Mart team also made a major leap of faith in
committing to 1871 (as well as a substantial financial commitment) and we’re
grateful for both their past assistance and for all the help they’ve given us
in making our newest expansion possible.
And finally, looking ahead, our expansion wouldn’t be
possible without the commitments of all of our new partners and the support of
our alumni companies who you’ll hear a bit from shortly. I can’t share some of
the bigger names with you yet, but I’m pleased to report that (even though
today’s our first public announcement), we are pretty much “sold out” in the
new expansion space with firm commitments from major new tenants and sponsors.
We’ll be adding a number of incubators in Education, Finance, Real Estate,
Internet of Things, and Food, among others, which will permit us to build
clusters of startups in these critical growth sectors – all of which will be
disrupted by new technologies and innovations for years to come. We expect that many of those critical changes
and new ideas will come right directly from the member companies at 1871.
I like to say that we are in the business here of engineering
startups – building new companies and creating new jobs – but these new
incubators and our new space will also help us in another important way – to
continue to manufacture “happy accidents” – to support the collisions of
serendipity and synergy that our community and the critical mass of talents
that we’ve assembled here enables and empowers. Where great wisdom meets wonder
and a wealth of experience.
This is an electric and super-energized environment – one
that buzzes every day with passion and possibilities – where change is
happening constantly – and where the future is being imagined and then
invented. But it’s also a place grounded in realism and an appreciation of the
hard work, perspiration and perseverance (as well as the not infrequent
heartbreak) that it takes to turn ideas into invoices. This is the factory of
the future.
1871 gets $2.5 million from state for expansion
1871 gets $2.5 million from state for expansion
1871 CEO Howard Tullman
The long-awaited expansion of 1871 is underway, thanks to a $2.5 million state grant.
The city's best-known incubator for tech start-ups is growing by 50 percent, adding 25,000 square feet next to its home on the 12th floor of the Merchandise Mart.
The expansion, which has been in the works since Howard Tullman was named CEO of 1871 late last year, will provide start-ups a place to grow while staying near other entrepreneurs. The new space is envisioned to accommodate companies with about 10 to 20 employees.
1871 offers co-working space to solo entrepreneurs and companies with just a few people. It's home to about 240 companies and sees traffic of about 1,000 people a day, a number that could potentially double after the expansion. Members pay $150 to $450 per month for memberships with various levels of access, including just nights and weekends to shared space to reserved desks.
An October opening date
But almost since the space opened two years ago, bankrolled largely by a $2.3 million commitment from Gov. Pat Quinn, the question has been how graduates could find more space without being forced to leave The Merchandise Mart. With the expansion, 1871 will be able to accommodate about 400 companies.
Construction will start in July, and the space could be open by October. In the meantime, a half-dozen companies that have outgrown 1871 are temporarily housed in space on The Mart's ninth floor. Among them are Learnmetrics, Social Crunch, Georama, Options Away, Smart Gardener and Tempesta Media.
In addition to providing move-up space for growing companies, the new facility will house seven incubators or accelerators aimed at launching start-ups in specific areas, including: real estate, food technology, women-led tech start-ups; education technology, financial technology, the Internet of Things and data-connected devices; and start-up education.
“It's defensive and offensive,” Mr. Tullman said, noting that 1871 already is home to accelerators TechStars Chicago and Impact Engine. “It's defensive in that I didn't want 20 mini incubators all over the city. It's offensive in that, while we're asking (corporate) sponsors to support entrepreneurship in generic terms. it's much easier to get their support if we're doing a specific industry vertical."
The expansion also is part of an effort to refine 1871's mission and programming as it moves beyond its own startup phase.
“1871 2.0 is about B-to-B, as opposed to B-to-C,” Mr. Tullman says. “We're trying to organize around industries where we have a lot of customers and opportunities. They're sustainable, and that's what the appetite is in Chicago.”
Real estate accelerator Elmspring already has launched, and a program focused on female entrepreneurs FEMTech , which is backed by Groupon Inc. CEO Eric Lefkofsky's family foundation, the Motorola Mobility Foundation and Google Inc., is supposed to launch in the fall.
The expansion also will provide more space for venture capitalists, who have offices at the main 1871 space and have helped underwrite the cost of the project. Mayor Rahm Emanuel has been trying to encourage more venture firms based outside Chicago to set up offices here, but so far, only New Enterprise Associates, based in Timonium, Md., has announced an outpost.
“Some venture firms want more space, and new venture firms want space, as well,” Mr.
Tullman said. “So far, the largest interest has come from firms in Israel.”
1871 has become the city's symbolic technology hub, though most start-ups are scattered across the city. Mr. Tullman estimates the approximately three dozen companies that have graduated from 1871 have raised $40 million and created about 1,000 jobs. “The Governor wouldn't have made this commitment if he wasn't a believer in 1871.”
Mayor Rahm Emanuel (left) listens as 1871 CEO Howard Tullman announces a commitment to job growth at the Chicago tech hub at the Merchandise Mart in April. | Al Podgorski/Sun-Times
Tech hub 1871 expanding its footprint at Merchandise Mart
MON, 06/16/2014 - 11:27PM
Tech hub 1871 will announce a 25,000-square-foot expansion at the Merchandise Mart on Tuesday, funded partially by a $2.5 million grant from the state of Illinois.
Two years after it opened its doors at the Mart, CEO Howard Tullman said the digital business incubator wants to make more office space available to alumni companies and venture capital firms hoping to get a foothold in Chicago.
It also wants to form “clumps or clusters” of companies working in six or seven key areas of digital or mobile technologies including education, real estate, food, women and technology and the “Internet of things” — how smart devices communicate with each other and the people who use them.
“Your clothing will measure your exercise and the calories you burn,” Tullman said, explaining the concept. “Every kind of device like that.”
Tullman said some companies that have grown out of 1871 “aren’t that crazy about leaving,” because that usually means devoting precious energy to mundane concerns like office furniture and security deposits. The travel-options website Options Away will be among the alumni to remain in “one of the big spaces” after the expansion,” Tullman said.
The $2.5 million grant from Illinois’ Department of Commerce and Economic Opportunity will be funded by bond proceeds from the Build Illinois program, according to department spokesman Dave Roeder, who said that follows an initial state investment of $2.3 million.
The biotech startup incubator MATTER will also be part of the facility, Roeder said. That endeavor received its own $2.5 million investment from the state earlier this year, along with a $1.5 million loan for seed money.
That brings the state’s total investment in the facility to $8.8 million.
Roeder said 1871 helped generate “more than a thousand jobs” since it opened its doors. Now he said the state has high hopes for its expansion plans.
“We hope it’s going to power a lot of new growth,” Roeder said.
In a prepared statement, Gov. Pat Quinn said, “1871 has become a true entrepreneurial hub for our state and its expansion means more career opportunities for the hardworking residents of Illinois.”
Tech incubator 1871 expanding this summer
Chicago workspace for digital entrepreneurs set to grow 50% bigger
Chicago's largest tech innovation hub is about to get 50 percent larger.
In April, the Tribune reported that 1871, a 2-year-old incubator for tech startups, would expand its space from 50,000 square feet to 75,000.
On Monday, the state confirmed it will pledge $2.5 million from the Build Illinois bond fund to retrofit an additional 25,000 square feet on the 12th floor of the Merchandise Mart into workspace for digital entrepreneurs. 1871's goal is to help build businesses to the point of self-sufficiency.
"This expansion shows that our investment in the next generation of Chicago businesses is paying off," Chicago Mayor Rahm Emanuel said in a statement.
"The jobs of tomorrow will come from the types of small businesses growing at 1871 today, and this expansion will allow even more entrepreneurs and businesses to locate here, bringing new jobs with them and supporting the city's economic growth.
1871 is a co-working space for tech entrepreneurs who want to build new companies. Benefits include the opportunity to collaborate with other entrepreneurs and venture capital firms who also call 1871 home -- currently about 250 companies. It's name is a nod to the rebuilding that took place in the city in the year 1871 after the Great Chicago Fire.
The hub in the Merchandise Mart aims to attract startups with two to eight employees and is also welcoming alumni back to work and serve as mentors. The incubator has been known to host “hack nights,” workshops and other coaching and training relevant to people who are looking to grow their companies. Memberships cost between $150 and $450 per month.
Gov. Pat Quinn said 1871's companies and alumni have created more than 1,000 jobs over the past two years.
"1871 has become a true entrepreneurial hub for our state, and its expansion means more career opportunities for the hardworking residents of Illinois," Quinn said. "We look forward to a strong partnership with 1871 as we continue to grow our startup community and support our innovators."
The expansion also means that more venture capital firms, who pay more for their space, will call 1871 home. CEO of 1871 Howard Tullman said 1871 hopes to grow the number of startups and venture capital firms to 350 or 400 by the end of the year.
Tullman said a construction team should be selected soon, and the rehab would begin by July 1. He said the project should be completed in October.
The space will be dedicated for seven mini-incubators focusing on food, real estate, education, financial services, startup engineering, women-owned tech businesses and something called the Internet of Things, conceived by the belief that everyday objects can be connected to the Internet and send and receive information.
The startup engineering incubator will include a presence from the Startup Institute, which trains people to succeed at startup companies, and professors who run a startup accelerator program at the Georgia Institute of Technology called Flashpoint, among other advisers.
In addition to the latest funding, the state contributed $2.3 million to help launch 1871 a few years ago. Venture capitalist J.B. Pritzker also provided early funding. The incubator also pulled in sponsorships from companies such as CDW, Google and Comcast, among others.
"For the second time now, the state has stepped up and expressed confidence that we can continue to grow, create jobs and focus on these areas," Tullman said. "We're very excited. I think it's the right thing to do, because we really didn't want all of this momentum and all this energy to be limited by 14 different incubators spread out throughout the neighborhood."
In April, the Tribune reported that 1871, a 2-year-old incubator for tech startups, would expand its space from 50,000 square feet to 75,000.
On Monday, the state confirmed it will pledge $2.5 million from the Build Illinois bond fund to retrofit an additional 25,000 square feet on the 12th floor of the Merchandise Mart into workspace for digital entrepreneurs. 1871's goal is to help build businesses to the point of self-sufficiency.
"This expansion shows that our investment in the next generation of Chicago businesses is paying off," Chicago Mayor Rahm Emanuel said in a statement.
"The jobs of tomorrow will come from the types of small businesses growing at 1871 today, and this expansion will allow even more entrepreneurs and businesses to locate here, bringing new jobs with them and supporting the city's economic growth.
1871 is a co-working space for tech entrepreneurs who want to build new companies. Benefits include the opportunity to collaborate with other entrepreneurs and venture capital firms who also call 1871 home -- currently about 250 companies. It's name is a nod to the rebuilding that took place in the city in the year 1871 after the Great Chicago Fire.
The hub in the Merchandise Mart aims to attract startups with two to eight employees and is also welcoming alumni back to work and serve as mentors. The incubator has been known to host “hack nights,” workshops and other coaching and training relevant to people who are looking to grow their companies. Memberships cost between $150 and $450 per month.
Gov. Pat Quinn said 1871's companies and alumni have created more than 1,000 jobs over the past two years.
"1871 has become a true entrepreneurial hub for our state, and its expansion means more career opportunities for the hardworking residents of Illinois," Quinn said. "We look forward to a strong partnership with 1871 as we continue to grow our startup community and support our innovators."
The expansion also means that more venture capital firms, who pay more for their space, will call 1871 home. CEO of 1871 Howard Tullman said 1871 hopes to grow the number of startups and venture capital firms to 350 or 400 by the end of the year.
Tullman said a construction team should be selected soon, and the rehab would begin by July 1. He said the project should be completed in October.
The space will be dedicated for seven mini-incubators focusing on food, real estate, education, financial services, startup engineering, women-owned tech businesses and something called the Internet of Things, conceived by the belief that everyday objects can be connected to the Internet and send and receive information.
The startup engineering incubator will include a presence from the Startup Institute, which trains people to succeed at startup companies, and professors who run a startup accelerator program at the Georgia Institute of Technology called Flashpoint, among other advisers.
In addition to the latest funding, the state contributed $2.3 million to help launch 1871 a few years ago. Venture capitalist J.B. Pritzker also provided early funding. The incubator also pulled in sponsorships from companies such as CDW, Google and Comcast, among others.
"For the second time now, the state has stepped up and expressed confidence that we can continue to grow, create jobs and focus on these areas," Tullman said. "We're very excited. I think it's the right thing to do, because we really didn't want all of this momentum and all this energy to be limited by 14 different incubators spread out throughout the neighborhood."
