I2A Fund

I2A Fund (Illinois Innovation Accelerator Fund) is a seed and early-stage venture capital fund based in Chicago, IL, that invests in promising startups headquartered in Illinois. It provides initial institutional capital to companies in technology-enabled products and services, new media and education, and consumer and retail sectors. Its first fund launched with a $6.4 million commitment, growing to $10 million, and subsequently closed a $40 million second fund entirely from private capital. Key investors and supporters include J.B. Pritzker, The Duchossois Group, Pat Ryan Jr., and the Illinois Department of Commerce and Economic Opportunity. Fund members from Illinois' entrepreneurial community offer networks and expertise to support portfolio companies. I2A Fund was founded in 2007 by Chicago business leaders, including J.B. Pritzker.

High-Level Overview

I2A Fund is a seed-stage venture capital firm based in Chicago, Illinois, dedicated to providing the first external professional capital to early-stage companies, primarily those founded in Illinois or willing to relocate there.[1][2][5] Its mission centers on bridging the Midwest capital gap by investing $250,000 to $1 million per company in technology-enabled products and services, new media and education, consumer and retail products, with opportunistic bets in clean technology, life sciences, nanotechnology, telecommunications, software, semiconductors, biotechnology, mobile, media and entertainment, IT services, and internet/web services.[1][6] The firm's investment philosophy emphasizes supporting well-managed entrepreneurs through a collaborative network of Illinois business leaders, fostering job creation and regional growth while focusing on seed and early-stage ventures in the United States.[1][4]

I2A Fund impacts the startup ecosystem by acting as a catalyst for Midwest innovation, leveraging local expertise to accelerate portfolio growth and addressing underinvestment in the region.[1][5] Notable investments include Base, Sittercity, and Future Simple, primarily in software and finance sectors, with a track record of co-investing alongside firms like Pritzker Group Venture Capital and Hyde Park Venture Partners.[2]

Origin Story

I2A Fund was established in Chicago by key partners Adam Koopersmith and Jason Felger, along with at least one other critical team member.[2] Headquartered in the heart of Illinois, the firm emerged to tackle the capital shortage for early-stage companies in the Midwest, positioning itself as the typical first institutional investor for promising seed ventures.[1][4][6] Its evolution has maintained a sharp focus on Illinois-based or relocating entrepreneurs with demonstrated market value propositions, evolving from a regional seed player to one with a portfolio spanning software, finance, and other tech-enabled sectors, peaking in activity around 2012 and achieving exits notably in 2018.[2]

Core Differentiators

• Unique Investment Model: Targets seed and early-stage deals ($250K–$1M) as the first professional capital, prioritizing Illinois-founded or relocating companies to fill the Midwest gap, with a collaborative structure involving 4–5 co-investors per round.[1][2]
• Network Strength: Draws on prominent Illinois business leaders and entities for expertise, connections, and operational support, enhancing portfolio success beyond funding.[1]
• Track Record: Invests in 2–6 deals annually, with popular exits in 2018; portfolio highlights include Base, Sittercity, and Future Simple; lower lead investment rate (9 points below average) but consistent U.S. focus matching its origins.[2]
• Operating Support: Emphasizes job creation and growth for technology-enabled, media, education, consumer, and opportunistic sectors like biotech and nanotech, providing hands-on guidance via local networks.[1][6]

(Note: Search results distinguish this VC firm from an unrelated French bacteriology lab automation company also called "i2a," which is not relevant here.[3])

Role in the Broader Tech Landscape

I2A Fund rides the trend of regional venture ecosystems gaining traction amid national capital concentration in coastal hubs, capitalizing on Midwest strengths in software, biotech, and manufacturing-adjacent tech like semiconductors and IT services.[1][2] Timing aligns with post-2010s efforts to revitalize heartland innovation, where lower costs and talent pools (e.g., from Chicago's tech scene) counter Silicon Valley dominance, supported by co-investors like Pritzker Group amplifying deal flow.[2] Market forces favoring it include growing demand for diversified U.S. startup funding amid economic shifts toward resilient, localized supply chains in tech-enabled consumer and life sciences products.[1] The firm influences the ecosystem by catalyzing jobs, exits, and follow-on funding, proving Midwest viability and inspiring similar regional VC models.[1][2][5]

Quick Take & Future Outlook

I2A Fund is poised to expand its role in Midwest seed investing as remote work and decentralized tech hubs mature, potentially increasing deal volume beyond its 2–6 annual pace by tapping rising interest in AI-driven software, biotech, and clean tech.[1][2] Trends like federal incentives for domestic innovation and climate-focused funding will shape its path, enabling more opportunistic plays in nanotech and semiconductors.[1] Its influence may evolve toward larger follow-ons or syndicates, solidifying Chicago as a seed powerhouse—reinforcing its core mission of fueling Illinois entrepreneurs from first capital to scalable success.[1][5]