Chicago has grown into a major startup ecosystem, though it still lags behind major tech hubs like Silicon Valley and Boston. The city benefits from a lower cost of living, strong universities, and growing support from investors, incubators, and the government. However, Chicago faces weaknesses in areas like a lack of visibility nationally, shortage of technical talent, and conservative investors seeking more proven models. While Illinois ranks 6th nationally in venture capital funding, Chicago has a long way to go to catch up to leading tech hubs that receive billions more annually in funding.