Velocity Currents--17th Edition
UChicago’s NVC and GNVC, Northwestern’s VentureCat, TechRise, 2112, and 1871 highlight a widening founder pipeline...
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.
To have your updates, funding news, or events featured in future editions, please email newsletters@vcf.vc.
Capital Moves | Funding Rounds & Frontier Builders
UChicago’s 30th New Venture Challenge awarded $2.1M across 10 teams. Cancer AI startup Slideflow Labs won first ($575K), Nestera second ($560K), Vidnova Therapeutics third ($210K). The NVC has launched 600+ ventures including Grubhub and Venmo.
VentureCat 2026 awarded $175K to student ventures, with HaptE taking the $100K grand prize. Northwestern-affiliated ventures raised over $250M, including Wiliot ($75M), Scapia ($63M), and Vi’s $145M transaction at a $1.64B valuation.
TechRise hosted its 11th North Lawndale Pitch Competition at the Fillmore Center, sponsored by Velocity Catalyst Funds, distributing $50,000 in non-dilutive funding to five founders. Kym Anglin of Koko’s Kitchen won first place and $25,000. TechRise also launched its Founder Resource Hub.
Kosmos Raised $5M for AI Software Outage Response
Chicago-based Kosmos raised $5M to help engineering teams resolve software outages faster using AI. Launched in February, the company automates parts of incident response so senior engineers spend less time firefighting.
2112 Inc. Appoints Mandy Ortiz as Interim Director to Lead Chicago’s Creative Industries Incubator
2112 Inc., Chicago’s first creative-industry incubator, welcomed Mandy Ortiz as Interim Director. Member Carlos Cedeno won a $20,000 grant from The Knot, the sole Illinois winner among 26 small businesses nationwide.
Battery startup Natrion joined the Exelon Foundation’s Climate Change Investment Initiative (2c2i) portfolio. Natrion develops advanced battery components for solar, EVs, and grid storage, and is expanding into defense-optimized cells with nearly 80% higher energy density than lithium-ion.
UChicago GNVC Awarded a Record $435K
Also on June 5, 2026, the Global New Venture Challenge awarded a record $435K to Chicago Booth Executive MBA-led ventures. First place tied: Phinorm earned $185K for defense drone-detection software, and Morton Labs $150K for fusion-energy computational infrastructure.
In Case You Missed It | Events That Made Waves
Illinois Passes Landmark Frontier AI Accountability Bill
Illinois lawmakers passed SB 315, requiring large frontier AI developers to publish safety and transparency frameworks, use third-party auditors, and file disclosures. It cleared the House 110-0 and heads to Gov. Pritzker, with broad implications for AI companies, startups, and compliance firms statewide.
VectorBuilder Committed $55M to a Chicago Biomanufacturing/R&D Hub
VectorBuilder, a gene-delivery company spun out of UChicago research, is investing $55M in a biomanufacturing and R&D center on Chicago’s South Side. Opening in 2027 at 35,000 sq ft, it could scale to 200,000 sq ft and 150 employees.
1871 Opens Nominations for 19th Annual Momentum Awards Honoring Chicago Tech Leaders and Companies
Nominations are open through June 12, 2026 for 1871’s 19th Annual Momentum Awards, taking place September 17. Six categories include Outstanding Tech CEO, Industry Disrupter, Social Impact, Rising Star, Momentum, and CityLIGHTS. Self-nominations welcome.
On the Ground | Events, Programs & Opportunities
Polsky Center
UChicago Deep Tech Demo Day — July 20
UPWARD 2026 Leadership Forum: Capital, Security, and the Future of Work — September 29
1871
WMNfintech Chicago Showcase — July 23
FOUNDER INSTITUTE CHICAGO
How to Get Your First 10 Customers Without a Marketing Team or Budget — June 22
Meet FI Alumni Founders: High-Growth Startups Panel — July 7
CHICAGO INNOVATION
Celebrating Women in Innovation — June 30
Climate Innovation Summit — July 15
CHICAGO:BLEND
Venture Club 101 — July 10, 17 & 24
mHUB
mHUB Community BBQ — July 16
P33
TechChicago Week 2026 — July 20-26
CHICAGO AI WEEK
Chicago AI Week 2026 — June 24-26
CHICAGO CLIMATE WEEK
Chicago Climate Week — July 18-25
STARTUP CPG
Market Signals | Innovation & Sector Trends
Digital Healthcare | MATTER Announces 13 Digital Health Startups Selected for Third Paratus Digital Health Accelerator Cohort Focused on Clinical Care and Public Health Emergency Preparedness
MATTER announced 13 digital health startups for its third Paratus Digital Health Accelerator cohort, focused on clinical care and public health emergency preparedness, including CBRN incidents, pandemic influenza, and emerging infectious diseases.
AI Infrastructure & Energy | Illinois Fails to Pass POWER Act for Data Centers
Illinois lawmakers failed to advance the POWER Act, which would have required data centers to disclose water usage, source renewable energy, and file quarterly water-use reports. As Illinois becomes a major data center market, AI-driven power demand now ties directly to grid capacity, utility bills, and water use.
Digital Healthcare | UChicago Develops AI Skin Patch That Computes On the Body
University of Chicago researchers unveiled a skin-like AI computing patch that analyzes health data directly on the body in milliseconds, without a cloud server or wireless connection. UChicago says it could aid high-stakes cardiac situations like ventricular fibrillation, combining wearables, edge computing, and flexible electronics.
Mobility & Gig Economy | Illinois Passes Bill Allowing Uber and Lyft Drivers to Unionize
Illinois lawmakers passed House Bill 5090, allowing rideshare drivers for Uber and Lyft to organize, elect representatives, and collectively bargain. It passed the House 83-28 and Senate 42-12-1 before heading to the governor, potentially reshaping labor costs and operating rules for app-based transportation in Illinois.
Closing Thoughts | The Midwest Advantage
This edition shows Chicago and Illinois continuing to build momentum across founder formation, early capital, frontier technology, and commercialization. UChicago’s NVC and GNVC, Northwestern’s VentureCat, TechRise, 2112, and 1871 highlight a widening founder pipeline, while Kosmos, Natrion, VectorBuilder, MATTER, and UChicago’s AI research show the region advancing in healthcare AI, climate tech, biomanufacturing, digital health, and enterprise infrastructure. At the same time, Illinois’ AI accountability bill, data center debate, and rideshare labor legislation show how policy is increasingly shaping the future of innovation across the state.
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.