Velocity Currents - 15th Edition
From Chicago’s $385 million Q1 startup funding total and mHUB’s hardtech growth to IBM’s quantum expansion, UChicago’s AI startup support, and new activity across fertility care, insurtech, genomics,
Good morning, it’s Monday, May 11, 2026. Happy Mother’s Day to the women of our great city!
Welcome to your bi-weekly edition of Velocity Currents, your pulse on the founders, funds, and frontier industries fueling Chicago and the broader Midwest innovation economy.
To have your updates, funding news, or events featured in future editions, please email newsletters@vcf.vc.
Velocity Catalyst Fund is a hybrid fund investing in pre-seed founders and emerging fund managers across Illinois. The fund pairs a Pre-Seed direct fund with a Seed stage Fund-of-Funds, designed to homegrow the next generation of multi billion dollar companies in industries where we have regional structural advantages.
Capital Moves | Funding Rounds & Frontier Builders
Reserv Closes $125M Series C Led by KKR for AI-Driven Insurance Claims
Reserv, cofounded by UChicago Booth adjunct professor CJ Przybyl, raised $125M in Series C funding to accelerate AI-driven transformation of insurance claims. The insurtech startup serves nearly 200 insurers and has doubled claims processing capacity annually since its 2022 founding.
Theta Neurotech Raises $2M Pre-Seed to Advance Seizure-Predicting Wearable
Theta Neurotech, a CNVC ‘23 alum and George Shultz Innovation Fund recipient, raised $2M in pre-seed funding to advance its seizure-predicting wearable EEG system. The device can alert epilepsy patients up to two hours before a seizure. And, we’re extra thrilled, as Theta Neurotech is part of the Velocity FoF portfolio via our investment in Harper Court Ventures.
Onto Health Closes $20M to Expand Fertility Clinic Network
Chicago fertility care startup Onto Health closed $20M to expand its Chicago clinic network and enter Gulf markets.
Madison Air Solutions Completes $2.23B IPO, Largest U.S. IPO of 2026
Madison Air Solutions, led by Chicago Booth alum Jill Wyant MBA ‘02, completed a $2.23 billion IPO, the largest U.S. IPO of 2026. The indoor air quality company is now valued at $13.3 billion and serves data centers, manufacturing, education, and healthcare sectors.
Chicago Startups Raise $385M in Q1 2026 Led by Chowbus
Chicago startups raised $385 million in Q1 2026, led by Chowbus’s $81 million round. The signal here is sustained momentum across fintech, healthtech, and marketplace platforms.
Chicago AI Startup definity Raises $12M Series A
Chicago-based definity raised an oversubscribed $12 million Series A led by GreatPoint Ventures, with participation from Dynatrace and Hyde Park Venture Partners. The company also launched its agentic data engineering platform, positioning Chicago as a growing hub for AI infrastructure and enterprise data automation.
Chicago Ventures Leads InstaSwitch’s $4.7M Seed Round
InstaSwitch raised $4.7 million in seed funding led by Chicago Ventures to support its account activation infrastructure for business banking. Although the company is headquartered in New York, the investment highlights continued Chicago VC activity in fintech infrastructure and financial services innovation.
Polsky Center Announces 2026 Build and Launch Accelerator Cohorts
The Polsky Center announced the teams selected for its 2026 Build and Launch Summer Accelerator, with each team receiving a $10,000 SAFE investment and eligible founders receiving a $5,000 stipend. The program strengthens UChicago’s startup pipeline by combining funding, mentorship, and a San Francisco field experience for founder networking.
In Case You Missed It | Events That Made Waves
IBM Opens FutureNow Chicago at Illinois Quantum Campus
IBM announced plans to open a FutureNow Chicago delivery center at the Illinois Quantum and Microelectronics Park on Chicago’s South Side, creating 750 full-time technology jobs. The expansion strengthens Illinois’ quantum strategy by connecting AI, cybersecurity, data science, and quantum talent to one of the state’s most important emerging innovation districts. P33 played a meaningful role in making this happen.
UChicago Partners with Microsoft, NVIDIA, AI Research Commons to Support Midwest AI Startups
The Polsky Center and UChicago Data Science Institute announced a major partnership with AI Research Commons, Microsoft, and NVIDIA to support early-stage AI startups from eight Midwestern universities participating in Third Coast Foundry. Selected startups will receive up to $350K in Microsoft startup credits, NVIDIA Inception program benefits, and access to Bay Area investor connections.
Spark Fund II Launch Advances mHUB Hardtech Investment Capacity
mHUB released its 2025 Annual Report highlighting $308M in capital raised by member startups, $290.2M in revenue generated, 150 products launched, and 442 new jobs created. The report details the launch of Spark Fund II, new Deep Tech Labs, and the vision for a sustainable manufacturing district in Chicago’s Kinzie Industrial Corridor.
Chicago Quantum Exchange Showcases Surging Midwest Quantum Ecosystem
Two major quantum conferences merge for Q2B x Chicago Quantum Summit at Marriott Marquis and McCormick Place on December 8-10, 2026. The event combines business, investor, research, and economic development programming to showcase the growing Quantum Prairie region.
QuarterliesFive Newsletter Launches with Michael Fassnacht
QuarterliesFive, a new weekly newsletter launching Thursday mornings, features interviews with top CEOs, investors, and senior leaders answering five consistent questions on leadership, decisions, and defining moments. The inaugural edition profiles Michael Fassnacht, President and Chief Growth Officer of Clayco and former CEO of World Business Chicago.
Chicago-Galway Creative Economy Partnership Advances at EDGE26
2112 Executive Director Daniel Crane will keynote at EDGE26 in Ireland on May 21st, advancing the Chicago-Galway creative entrepreneur partnership established in summer 2025 and strengthening international pathways for creative startups between the regions.
Illinois and UAE Officials Build Innovation Corridor at Chicago Convening
Illinois and UAE officials convened at the Hyatt Centric Chicago O’Hare for a landmark panel titled From Incubation to Global Expansion: Building an Illinois–Abu Dhabi Corridor. Participants included State Representative Anna Moeller, 2112 Executive Director Scott Fetters, UChicago Polsky Center representatives, and Hub71 leadership.
Chicago Innovation Foundation Celebrates 25th Anniversary with In-Gala
The Chicago Innovation Foundation will host its 25th Anniversary In-Gala on August 6th at the Bridgeport Art Center, bringing together 500 business, civic, and tech leaders to celebrate a quarter century of fostering inclusive innovation across the Chicago region.
On the Ground | Events, Programs & Opportunities
POLSKY CENTER
1871
1871 ScaleUp Conference — May 7
Startup Roadmap: Cohort Info Session — May 14
AI, Quantum, and Web3: From Policy to Production — May 27-28
CHICAGO INNOVATION
Innovation Elevates Us All — May 27
Congressman Mike Quigley on Technology and Innovation Vision for Chicago — May 28
MATTER
Panel on Rethinking End-of-Life Care — May 14
Coffee, Connections & Coworking for Healthcare Entrepreneurs — May 18
IVCA
TECHNEXUS
GENER8TOR
2FLO VENTURES
Health Equity Pitch Competition — May 8
INVESTOR CONNECT
AI TECH Pitch & Networking, Chicago — May 13
NATURALLY CHICAGO
Market Signals | Innovation & Sector Trends
Energy, Climate & Sustainability | Chicago Water Innovation Ecosystem Gains Momentum
Chicago Water Week runs May 3-9, 2026, bringing together water innovators, industry leaders, researchers, policymakers, and community changemakers to explore water solutions. The effort highlights Chicago’s freshwater advantage and Current’s $160 million in NSF funding as the region builds a stronger water innovation economy.
Quantum & AI | Bluefors Expands Chicago Quantum Infrastructure
Bluefors joined the Chicago Quantum Exchange and is opening cryogenic lab infrastructure at Hyde Park Labs for startups and researchers. The expansion gives Illinois quantum teams access to specialized equipment needed to test, validate, and scale quantum sensing, computing, and superconducting technologies.
Quantum & AI | Chicago Quantum Exchange Releases Midwest Workforce Strategy
The Chicago Quantum Exchange released a regional quantum workforce strategy for Illinois, Wisconsin, and Indiana, highlighting the talent needed to support the growing quantum economy. The report projects up to 191,000 quantum-related jobs by 2035 and emphasizes pathways for workers without advanced degrees.
Biotech & Life Sciences | GenomicMD Advances Clinical-Grade Genomic Risk Assessments
GenomicMD is using Polygenic Risk Score technology to analyze thousands of genetic variants and identify significantly more at-risk patients than traditional single-gene screening. Endeavor Health becoming the first hospital system to adopt the approach highlights Illinois’ growing role in clinical genomics and preventative healthcare innovation.
Quantum & AI | DPI Awards First Quantum Research Grant
Discovery Partners Institute awarded its first quantum-related research grant through the National Quantum Algorithm Center’s Grand Challenges initiative. The project brings together UIUC professor Bryan Clark, BP, and Chicago-based qBraid to advance quantum chemistry research tied to energy, biofuels, catalysis, and carbon utilization.
Real Estate & PropTech | Moderne Ventures Selects Spring 2026 Passport Companies
Chicago-based Moderne Ventures selected eight companies for its Spring 2026 Passport program across AI, geothermal energy, spatial AI, EV charging, compliance, and real estate legal tech. The program shows how Chicago venture platforms are helping emerging technologies enter real estate, finance, insurance, and other legacy industries.
Startup Ecosystem | Density Co-Founders Build High-Trust Chicago Founder Collective
Density co-founders Scott Nelson and Eric Mills launched a curated, in-person collective for top Chicago founders and operators focused on high-trust collaboration. The group has already helped member startups raise more than $25 million since 2024 while supporting co-founder matches, engineer hires, and deeper founder-to-founder support.
Quantum & AI | DPI Highlights Physics-Informed AI for Particle Research
Discovery Partners Institute highlighted a UIUC-Fermilab collaboration using physics-informed AI to improve particle classification in neutrino experiments. The project shows how Illinois researchers are applying AI to complex scientific data problems where accuracy, interpretability, and domain knowledge matter.
Food & AgTech | Illinois Opens Specialty Crop Innovation Grant Funding
Illinois opened nearly $800,000 in specialty crop grant funding for projects tied to food safety, crop research, nutrition education, pest control, and beginning farmers. While more public-sector than startup-focused, the funding supports agricultural innovation and specialty crop development across the state.
Startup Ecosystem | Chicago Innovation Awards Nominations Open for 25th Anniversary
Nominations are open through July 31 for the Chicago Innovation Awards, marking the program’s 25th anniversary as one of the region’s largest celebrations of innovation. The awards give organizations across industries a platform to showcase new products, services, and ventures launched within the past four years.
Closing Thoughts | The Midwest Advantage
This edition shows the Midwest innovation economy moving on multiple fronts at once: later-stage capital, early founder formation, university commercialization, and frontier infrastructure. From Chicago’s $385 million Q1 startup funding total and mHUB’s hardtech growth to IBM’s quantum expansion, UChicago’s AI startup support, and new activity across fertility care, insurtech, genomics, and water innovation, the region is proving that its strengths are both deep and diversified.
Velocity Catalyst Fund exists to amplify that momentum: writing early checks, anchoring emerging fund managers, and ensuring that innovation born in the Midwest scales in the Midwest.
This edition was published with help from Joel James, VCF Intern.