An increasing number of university spinouts and startups founded in Illinois keep their offices in the state.
Illinois has reached its highest level of university spinout activity remaining in the state in five years, Chicago Inno has reported.
Accoridng to the Illinois Science and Technology Coalition’s (ISTC) latest Innovation Index, companies founded at Illinois universities are staying put, refuting suggestions the state is suffering from a brain drain as home-grown entrepreneurs move away and run their businesses from elsewhere.
The index revealed that of the 611 businesses founded by Illinois university students and faculty over the past five years, 80% were still running or had been acquired, and 73% of those were still operating in the state.
Over the past 10 years, one-fifth of all university companies have been spinouts and accounted for $1bn, or one-third, of funding. Since 2010, 118 spinouts have raised $163m.
The index also revealed that while most spinouts from Illinois universities remain in the state, retention of those with VC backing is much lower, at 62%, suggesting some businesses were relocating to be closer to the their investors.
Mark Harris, president and chief executive of ISTC, said: “Illinois’s universities are engines of economic growth.
“The significant uptick in the level of entrepreneurial activity occurring on campuses across the state is a testament to the investment our universities have been making to build programs, initiatives, and incubation spaces that cultivate entrepreneurial talent and support technology companies that are growing here in Illinois.”
