Velocity Currents- 1st Edition
This is the first of a biweekly newsletter covering some of the top things happening in Chicago's venture ecosystem.
Good evening. It’s Sunday, October 19, 2025. Welcome to the first edition of Velocity Currents a new weekly newsletter from Velocity Catalyst Funds, sharing the stories, capital flows, and breakthroughs shaping Chicago and the broader Midwest innovation economy.
Velocity was founded to close the early-stage funding gap that has long slowed regional growth. We invest in pre-seed founders and emerging fund managers across Illinois, building a stronger, more connected capital stack so that the next generation of world-class companies can start and scale right here at home.
This newsletter is designed to be your quick, informed pulse on what’s moving, the founders raising early rounds, the funds launching new strategies, and the ecosystem events driving collaboration across the region. Whether you’re a founder, investor, or community builder, Velocity Currents brings the Midwest’s momentum straight to your inbox.
To have your updates, events, and news published, please email details to newsletters@vcf.vc.
Capital Moves | Funding Rounds & Frontier Builders
Zerohash raises $104M Series D to scale digital asset infrastructure. The Bain Capital–backed fintech expands compliance-first crypto and settlement rails used by fintechs and enterprises; part of a week that saw F6S startups tally $827M across 4,700 rounds.
UChicago Science Incubator + Hyde Park Labs open on the South Side. The University of Chicago adds 300,000 sq. ft. of wet labs and founder space, strengthening the region’s life sciences and deep tech stack.
Reserv extends Series B by $16M for AI-native claims. Co-founded by Booth adjunct CJ Przybyl, the insurtech serves 100+ carriers and TPAs, using generative AI to modernize multi-line claims.
CancerIQ named to TIME’s World’s Top HealthTech Companies. The Chicago-founded precision prevention platform earns global recognition for outcomes and growth.
Kin Insurance expands into Missouri. Chicago’s home insurtech adds another Midwest market to serve households facing severe-weather risk.
Origin Ventures closes $140M Fund VI focused on AI and emerging tech.
Led by Booth alum and professor Jason Heltzer, Origin Ventures has closed its largest fund to date, a $140 million vehicle targeting AI-driven innovation in robotics, quantum computing, and supply chain. The milestone underscores Chicago’s expanding leadership in next-gen venture capital.
Icosa Computing secures $1.42M NSF STTR grant for AI reasoning with NASA partnership. Polsky-backed Icosa Computing, a deep tech spinout focused on physics-inspired combinatorial reasoning, received a $1.42 million NSF STTR grant to accelerate its work in next-generation AI systems.
mHUB Ventures announces $20M Spark Fund II first close. The second iteration of mHUB’s Spark Fund aims to invest in 65 early-stage hardtech startups across energy, health, and sustainable manufacturing. Spark Fund I generated $6 in follow-on capital for every $1 invested, setting a strong foundation for Chicago’s hardware innovation economy.
Techstars Opens Applications for Spring 2026 Accelerator Cohorts. Techstars, whose alumni have created 22 unicorns, is now accepting applications for its Spring 2026 programs, offering Midwest founders capital, mentorship, and access to global networks.
On the Ground | Events, Programs & Opportunities
mHUB | Warranty Management
Wed, Oct 22. Turn warranty strategy into margin, loyalty, and product feedback loops.
mHUB | Night of the Living Tech (Networking + Demos)
Thu, Oct 30. Community showcase and Halloween-themed mixer for founders, builders, and partners.
1871 | Early Stage Membership Info Session (Weekly, Virtual)
Tuesdays, 1:00–2:00 PM CT; ongoing. How 1871 accelerates early-stage growth with mentors, programming, and peers.
Funding & Fellowships (Regional/National)
Activate Fellowship (2-year, $100K), Apply by Oct 28.
Breakthrough Energy Fellows, Apply by Nov 10.
Incubatenergy Labs® Challenge, Apply by Nov 14.
Chain Reaction Innovations @ Argonne, Apply by Nov 7.
Polsky Center | Entrepreneurship Events (Oct 23–27)
Oct 23: Fireside Chat with David Shapiro (KPS Capital Partners)
Oct 27: NVC@30 Fireside Chat with Matt Maloney (Grubhub Founder)
Oct 27: Student Networking – Alchemist Chicago Startup Accelerator
Chicago Quantum Summit | Nov. 3–4 at Willis Tower
The eighth annual Chicago Quantum Summit convenes Boeing, IBM, Harvard, and U.S. Commerce leaders to explore commercialization, workforce development, and the quantum economy’s growth in the Midwest.
MATTER + Loyola | Health Equity Quest (Nov. 13, Virtual)
Loyola University Chicago and MATTER will host a national summit on cardiovascular innovation and equity. Keynotes include Dr. Rajiv Kumar (Apple) and Dr. Mintu Turakhia (Stanford), exploring how digital tools can close care gaps.
Market Signals | Innovation & Sector Trends
Digital & Traditional Healthcare | Rapid sepsis diagnostics. Inflammatix publishes new validation supporting the FDA-cleared Triverity Test for ED triage.
AI & Quantum | Bluefors expands Chicago lab
Bluefors has opened a second cryogenic facility at the UChicago Science Incubator, reinforcing the city’s role as a quantum hardware hub.
Energy & Infrastructure | Switched Source deploys Phase-EQ grid tech
Chicago startup Switched Source deployed its grid-enhancing technology in Georgia, boosting electric capacity and resilience, an example of Midwest-born tech driving national energy innovation.
Healthcare & Life Sciences | Mindful Care expands access to urgent psychiatry
Booth alum Tamir Aldad’s Mindful Care continues to redefine mental health access with same- and next-day psychiatric appointments across Illinois and beyond.
Social Enterprise | Booth Review explores “polycrisis” entrepreneurship
A new Booth Review feature examines how founders can balance mission and margin amid compounding crises, a must-read for social innovators.
Builders & Breakthroughs | Founders in Motion
John Flavin (Portal Innovations) on CNBC. The Chicago biotech builder breaks down how pharma tariffs could ripple through R&D and manufacturing, and where reshoring meets innovation.
ClostraBio launches novel probiotic from UChicago science. The Chicago startup debuts Anaerostipes caccae CLB101™ targeting gut barrier function and butyrate pathways.
Inomagen Therapeutics takes 2nd at HRX2025. Recognition for Chicago medtech advancing cardiovascular care.
Forty Acres Fresh Market officially opens in Chicago’s Austin neighborhood.
Founder Liz Abunaw launches Chicago’s first Black-owned grocery store, featuring a new “Nutrition Corner” in partnership with Foodsmart to expand healthy food access.
Exactics and Unlisted selected for TechCrunch Startup Battlefield 200.
Two Polsky-affiliated startups, biotech firm Exactics and proptech startup Unlisted, will compete at TechCrunch Disrupt for $100K in October, highlighting Chicago’s presence on the global innovation stage.
Jackie Jackson honored for entrepreneurial resilience.
Polsky alum Jackie Jackson, 2024 Illinois Small Business Person of the Year, shares her journey from early franchise challenges to operating eight Kilwins locations across Illinois.
Morningstar’s Chicago Roots Inspire a New Generation of Builders.
From a one-person startup to a global financial powerhouse, Morningstar’s journey highlights Chicago’s enduring strength in fintech and data innovation.
Quick Hits | At a Glance
Evergreen Climate Innovations wins 1871’s Social Impact Award.
DOE launches “Mine of the Future” & funds gallium supply chain, opportunities for Midwest materials startups.
UChicago launches new Entrepreneurship & Innovation minor for undergraduates through Booth and Polsky.
VC University Bootcamp: Applications open for Feb. 2026 at Stanford.
Equity Crowdfunding 101: DC Palter breaks down when startups should (and shouldn’t) raise through the crowd.
To have your updates, events, and news published, please email details to newsletters@vcf.vc.
Closing Thoughts | The Midwest Advantage
The Midwest has the ingredients to build enduring companies, deep research hubs, resilient industries, and founders tackling real-world problems. Yet too often, early-stage funding and talent flow outward to the coasts. Velocity Catalyst Fund exists to change that dynamic by rebuilding the region’s capital stack: deploying early checks into founders, anchoring emerging funds, and ensuring that innovation born here scales here.
As we launch Velocity Currents, our goal is to connect the people and capital driving that change, from life sciences on the South Side to quantum labs, AI-driven insurance, and energy transition startups across the region. This is more than a newsletter; it’s an inside look at how Chicago and the Midwest are redefining what’s possible in venture capital and innovation.
—
About Velocity Catalyst Fund
Velocity Catalyst Fund (VCF) is a $25M Pre-Seed direct fund writing 40 early checks over three years, paired with a $25M Seed Fund-of-Funds that backs emerging, sector-focused managers poised to follow on. But our mission goes beyond capital deployment, we exist to rebuild the Midwest’s early-stage ecosystem from the ground up. By anchoring new fund managers and investing in founders at the earliest stages, we’re closing the gap between world-class innovation and local capital.
This edition was published with help from Joel James, VCF fall intern.