Switchfast Blog: The Future of IT
Hey Chicago, You’re the Next Silicon Valley
Friday, June 25, 2010 by Matt Hymel
It's been almost 40 years since Don Hoefler, a journalist from
California, coined the phrase "Silicon Valley" in a weekly tabloid
called Electronic News. He initially used the term to describe the
"congeries of electronics firms mushrooming in Santa Clara County."
Little did he know, this powerful and well-established phrase would
stick, and now describes the innovation and "boom" surrounding one
of the greatest technological eras of recent centuries.
As consumers watched recognizable companies like Apple, Google,
HP, Yahoo!, and eBay grow from small startups to immense business
ventures, entrepreneurs everywhere witnessed the possibility of
taking an idea from the ground and building it into a piece of
culture.
Many of these entrepreneurs didn't need to pick up and move to
Silicon Valley - they found a haven in Chicago.
Certainly, some of the biggest technology companies have
prospered due to the proximity of knowledge and resources within
the Silicon Valley. As the internet has aged, information has
become more accessible. Ground breaking technology information 5
years ago is now common knowledge.
More than ever, small business startups are taking advantage of
opportunities to expand on an idea - a passion to create, supply,
and connect a product that consumers want (or need).
The greatest support for Chicago small businesses lies in the words of two angel investors - Brad
Keywell and Eric Lefkofsky. These two helped found Chicago-based
startups Groupon and Mediabank, both having huge growth and success
on a national level. Their next investments include FeedBurner,
37Signals, and Threadless (our business neighbors!).
Eric Lefkofsky explains that "because reliance on technology has
gone down, the other attributes of business become more important:
hard work and sales." He stresses that this is Chicago's "moment in
the sun," and that the city is part of a migration of Internet
startups away from the Valley.
A blog post over at SecondCitySEO.com points out that "most
people don't realize that many well known internet brands are
Chicago companies." He provides a comprehensive list that you can
check out here that includes names like
Orbitz, The Onion, Sittercity.com, and Ars Technica.
While many investors believe in Chicago small business startups,
there are those who cast doubt. Connie Loizos at peHUB.com discusses Lefkofsky's remarks as
well as Chicago-based venture capitalist Lon Chow, who attributes
the lack of tech dominance in Chicago to the "largely historic
development of other industries. You can go into trading, work for
a hedge fund, or run your family's small business (in
Chicago)."
The great point to take from Connie's article is this - the
entrepreneur arena has been growing, and settling down in Chicago
instead of looking to either coast for proximity influence is a
viable option. The examples of great startups may be a small list
compared to Silicon Valley, but over the last decade the economy
has pushed small businesses to the edge of survival. Those that
have made it through will prove their worth on a national scale -
and expose the power and opportunity possessed by starting a
business in the Windy City.
Until Next Time -
Matthew Hymel
Switchfast Technologies
Chicago IT Support &
Consulting
Rochester
IT Support & Consulting
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