April 10, 2026
Mapping the Midwest Innovation Ecosystem
A data-driven overview of the Midwest's tech ecosystem, in collaboration with StartMidwest. An underhyped innovation powerhouse, despite a persistent venture capital gap.
Key findings
- The Midwest generates about 16% of U.S. GDP but captures only 3-5% of U.S. venture capital, one of the largest capital allocation gaps in the country.
- The Midwest's economy is worth about $4.7T, level with Germany's and ahead of Japan's $4.2T.
- Midwest startup enterprise value grew 3.8x in a decade, from $174B in 2016 to $660B in 2026, a compound annual growth rate of 14%.
- Illinois leads Midwest states with $267.6B in startup enterprise value in 2025, about 2.7x the next state, Michigan at $98.1B.
- Groupon alumni have founded more than 100 companies worth over $15B combined, now spread across six continents from their Chicago starting point.
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Selected charts
Companion charts derived from this report — open any chart in full-screen on the right side.
The Midwest produces 16% of US GDP and raises 4.9% of US tech VC
Midwest companies raised 4.9% of US tech venture capital from 2021 to 2025, against 16% of US GDP.
Midwest startup value has grown 4.6x since 2016
Combined enterprise value of Midwest startups rose from $148B in 2016 to $682B in October 2026.
107 Midwest companies are valued at $1B or more
98 Midwest companies are valued at $1B–$10B and 9 at $10B or more; 124 have reached $1B at some point.