The Midwestern United States has long been a force in economic development. A region characterized by its agricultural heartland and manufacturing industries, businesses in states like Ohio, Indiana, and Iowa have always contributed to both our national and global supply chains.
Illinois, in particular, is another state ahead of novel advancement year over year. A leader in soybean and corn production, as well as a home to numerous commercialized entities, many know it as a regional staple representing economic achievement and industrial diversity. Yet, what these businesses in the area lack, however, is the venture capital (VC) to meet this rapid success.
“Middle America—especially Illinois—is brimming with untapped innovation. Yet despite the quality of ideas and talent, these ventures often lack access to early, strategic capital,” says Ankit Shrivastava, Founder & Managing Partner of Enventure, a U.S.–India private equity firm helping family-owned businesses through generational planning.
An expert in the field of business, Ankit is a firm believer in placing prominence for those businesses that often get overshadowed by the coasts. Ultimately, it’s about bridging the capital gap so household names don’t go unnoticed nor forgotten.
“At Enventure, we see this not as a challenge but as a massive opportunity. We’re investing early in overlooked markets, bringing both capital and hands-on support to scale high-potential businesses that might otherwise be missed by coastal firms. It’s time that smart capital moved closer to where real innovation is happening.”
At its core, venture capital provides funding to businesses that would not otherwise have the proper resources to take on debt. Unlike banks, which is how a majority of startups source their money, VC investors offer equity-based capital and supplement it with mentorship, operational guidance, and access to networks. In return, they hope to benefit from the company’s future growth and success.
As recent data shows, the overall rise in venture capital is increasing, but only among specific industries. While there are more than 150 million startups worldwide—the U.S. constituting over 80,000 of those—venture funding toward the end of 2024 totaled around $66.5 billion. Artificial intelligence groups were the leaders in this area, culminating almost $19 billion, or 28% of all venture capital. The numbers show while capital surges in modern sectors, it lags behind in more traditional industries.
Similarly, of the companies located in the Midwestern region, 22% are named on the Fortune 500 list, but only 5% receive venture funding. The city of Chicago holds claim to 35 of those top companies, although venture dollars are still scarce. Comparatively, five metro areas along the coast—San Francisco, New York City, Boston, San Jose, and Los Angeles—collectively account for more than two-thirds of all venture capital and private equity investment nationwide.
The alarming numbers in mind, one reason for capital disparity across the U.S. is perception. Investors often view coastal areas as more dynamic and desirable, despite the Midwest’s competitive advantages and rise in innovation. Another factor is geography. Because many venture capital firms are located on the coasts, the largest market in Silicon Valley, this proximity breeds trust and familiarity.
But as Middle America faces this persistent capital problem head on, efforts are underway to challenge the narrative. For example, VC investors are starting to target underserved markets and local governments are offering incentives. And for those entrepreneurs in this crisis together, many of them are leaning on each other for support.
Without venture capital, business leaders could struggle to hire, reach goals, or lose sight of direction. Businesses might even risk failure in the long-term or experience a slow-paced trajectory, further reinforcing that the need to address coastal bias is urgent.
For the Midwest, and especially Illinois, it’s time to narrow our time to venture capital. With the right belief that capital is not only a financial tool, but also an opportunistic journey, perhaps the Middle of America can start to take even greater shape than before.
