Midwest Funding Report: March 21 – March 27

The Funding Roundup is a weekly note about companies that raised venture capital.  We use four sources – 1) those that are sent to us via press release ([email protected]), 2) Form D filings in the sixteen states that we cover, 3) Databases to which we subscribe (particularly Pitchbook, Crunchbase), 4) Other sources (such as SBIR grant database).  The goal of the funding roundup is to provide a quick synthesis of companies that are actively raising money.  This is not a value judgment placing VC backed companies over bootstrapped – only a recognition that VC backed companies often file paperwork that puts them on our radar.

Chicago had a strong week with the three largest deals – bringing in more than $160 million in venture funding – that is an estimated 700 jobs this week alone.  The economic impact of venture activity is understated because the econometric tools are not good at measuring long-term economic impact, only transactional impact.  Thus, a better estimate may well push those deals towards creation of 2000 jobs with indirect and induced impacts – but the analytical tools are weak.  This is particularly true as one starts to analyze other communities that had a number of deals this week.  For example, Indianapolis had strong follow-on funding and a number of new transactions.  These will have long-term effects on the local and regional ecosystem – but they are hard to measure.  Another good example of a company this week that reflects a significant moment – but cannot be measured well – is Workshop.  Dusty Davidson and many of his former teammates at Flywheel are back in the startup game with a new Omaha-based company.  Together, the forty+ companies in this week’s funding report will have long, significant impacts, but will be measured by a simple blip on most people’s radar.  So, while we do not go into great depth, the impact of this list is significant, each and every week. Thanks for reading!