Report Says Chicago's Tech Scene Has 2 Billion-Dollar 'Unicorns'
By Justin Freeman in Arts & Entertainment on Aug 25, 2015 8:20PM
A new report listing 50 tech startups around the world that are on the path to a billion dollar valuation included two local companies. They are Raise and Avant.
This news is exciting for Chicago but not entirely surprising, given the other recent successes of the local startup scene. On Friday, we talked about Modest, the e-commerce platform recently acquired by Paypal for an undisclosed amount of money. It was developed by Harper Reed and Dylan Richard, who ran the technology team of Obama’s 2012 re-election campaign.
If you take a look at the new report, published Monday by the New York Times, you’ll see the term “unicorn” tossed around a lot. Tech companies with an estimated worth of at least 1 billion dollars are called “unicorns,” because companies estimated to be worth that much were incredibly rare at one point.
We support sending the term “unicorn” to the graveyard of dumbass tech buzzwords along with “disruptive,” “thought leader,” and “growth hacker.” Unless, of course, you refer to yourself as a "disruptive guru ninja rockstar unicorn thought leader," in which case well played sir and/or ma’am.
The report used a special algorithm with factors including financing, employee turnover and social media mentions to come up with the list of 50 tech startups around the world on the path to that billion dollar valuation. The companies specialize in everything from drones to personal stylists for women.
Avant, not to be confused with the underrated early 2000’s R&B signer of the same name, is a online banking company that according to Built in Chicago uses “advanced algorithms and machine-learning capabilities” to offer it’s users personal loans and other financial lifelines. They sound similar to other online banking platforms that eschew traditional brick and mortar banks to be digital only. They’ve been around since 2012 are are based in the Loop.
Raise is an online marketplace of secondhand gift cards. Say, for example, your folks got you a gift card to Starbucks and you decide that you don’t want it for whatever reason. Using Raise, you could sell your Starbucks gift card and get cash in return. The reverse is true as well. Let’s say that you’re looking for a Starbucks gift card. Using Raise, you could buy a slightly discounted gift card for Starbucks. Raise has been around since 2013 and is also based in the Loop. Last week, Raise made a talent acquisition of Tastebud Technologies, which specializes in predictive analytics.
Raise and Avant are just the tip of the iceberg. Emile Cambry’s series of Blue1647 tech incubators is doing fantastic work in the in the Englewood, Lawndale and Pilsen neighborhoods with more to come in the city’s South and West Sides, and we recently detailed Spartz Media's quest to become the new Buzzfeed.
We wonder who will be in the next crop of Chicago tech company we’ll be be talking about.