Following in the success of LinkedIn, Groupon, Envestment’s IPOs, the Chicago startup, GrubHub went public on April 4, 2014, with shares soaring to over $40 dollars a share well above their $26 dollars per share Initial Public Offering (“IPO”) price. The New Company was formed through a merger between Chicago based “GrubHub” and New York based “Seamless.” Will the surge in IPO’s for tech companies continue? Is there real value there for investors? Many experts expect the shares to do fairly well, as the initial expected offering rose from the range of $20-$22 per share, all the way up to $26 per share late Thursday night before the Friday morning offering.
The IPO is great for GrubHub, but more importantly, the Chicago Startup community at large. Chicago is beginning to build a reputation in recent years for its successful tech companies with even better IPOs. GrubHub is the third recent, Chicago based Tech Company, to have an IPO valuation of over a billion dollars, nearly, $3 billion. Groupon, the digital coupon and bargains merchant went public in 2011, and is currently, valued at $5.4 billion dollars. While, a lesser known IPO for Envestnet, a local tech startup that produces software for financial advisors has led to a current valuation of $1.35 billion dollars.
All this success helps aids in Chicago’s current effort to rebrand the City as a Startup and Entrepreneurship HUB. An effort shared by President Obama, who awarded Chicago, a coveted federally funded high tech hub on February 25th of this year. Hopefully, this will continue to keep Chicago on the map as not only, a distribution network for products and commodities, but also a thriving City for innovation. Does this mean more deal and intellectual property work for lawyers? Certainly, seems so as Entrepreneurs are starting to find success and providing a return on investment to Angels, VCs, Private Investors and public shareholders!
The City of Chicago received a total of $70 million for a Pentagon-led institute that focused on high-tech digital manufacturing and design. The Startup Community in Chicago is flourishing, and there’s no better place or time for individuals with a dream and an idea, to start looking to make them into a real business. If you or someone you know has an amazing idea for a startup business and is looking for investors, look no further than the Entrepreneurs and Executives Bruch Club’s Startup Competition (EEBC-It’s Just Brunch!).
At the EEBC’s 2014 Spring Competition, Startups were presented with the chance to pitch their businesses to actual equity and angle investors. During the March 2014 Competition $2,000.00 in actual seed money was awarded to the top three teams by the EEBC-It’s Just Brunch! See the Winners:
The next EEBC Quarterly Competition takes place in June 2014 and the EEBC is currently, looking for qualified teams to compete.