The Opportunity
As venture capital investments hit record highs, a huge gap exists in the Midwest region with deal count and deal value leading to a massive untapped opportunity. Over the past 7 years, the region saw big successful exit outcomes of $20+ billion. From 2019 to 2020, venture capital investments in the Midwest increased to $11.6 billion from $6.5 billion demonstrating signs of solid momentum. Chicago is leading the way with big exits and new unicorns where $2 billion was invested in Illinois just in Q1 of 2021.

Propellant Ventures views this as a timely opportunity to boldly invest in under-appreciated regions such as the Midwest, where entrepreneurs have historically struggled to get funding particularly in Pre-Seed and Seed stages. The Midwest produces some exceptional companies focused on success, which results in some of the best startup returns for investors in the U.S. Strengths of the region include top universities, affordable talent, lower cost of living, home to close to 25% of the Fortune 500, and diverse industries and founders.