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How Chicago Startup Compensation Compares to the Coasts
PsiQuantum’s Signal, Midwest Unicorn Origins + 8 Tech Events
Landon Campbell
March 31, 2025
In partnership with
✍🏽 Welcome to Landon’s Loop: your go-to weekly read on Chicago’s innovation economy.
In this week’s newsletter: how Chicago startup compensation compares to other regions, what PsiQuantum’s mega-round means for our city, how many unicorns trace back to Midwest universities, and tech events around Chicago.
🔙 Highlights from Last Week
We co-hosted a meetup with ChicagoBlend at our office on Tuesday.👇🏽
PsiQuantum announced a $750M raise this week, which will help with their plan to anchor their new quantum campus on Chicago’s South Side.
It’ll bring high-tech jobs, research partnerships, and new life to one of our largest industrial sites. 👇🏽
Big raise: @PsiQuantum raises nearly $750m at a $6B valuation.
Chicago is one of just two cities selected for their next quantum computers.
— Landon (@landon20s)
7:08 PM • Mar 25, 2025
💰 How Chicago Startup Compensation Compares to the Coasts
Image generated with OpenAI’s new image tool
As startups adjust to a more disciplined, post-ZIRP landscape, the Midwest (particularly Chicago) is showing that you don’t need sky-high burn rates or inflated salaries to build great companies.
I’ve spoken a lot about how startup salaries in Chicago go much further, and this is an area that gives us an edge.
Let’s look at the 2024 comp data:
Chicago Salaries Hold Their Own
While Tier 1 cities like SF and NYC still top the charts on absolute salary numbers, Chicago’s compensation is far from a discount.
According to Pave:
A VP of Growth in Chicago earns a median base salary of $220K, not far behind peers in coastal metros.
SVPs of Sales in Chicago pull in $250K+ at the 75th percentile, while total comp remains more capital-efficient due to lower equity dilution.
The cost of living differential makes Chicago salaries go further, so startup operators retain more purchasing power without demanding Bay Area premiums.
Midwest Employees Give Up Less Ownership
Equity compensation is often the balancing lever when salaries differ across markets, but the data shows Midwest employees aren't being shortchanged:
A CEO in a Chicago startup can hold 0.35%–0.45% at the 75th–90th percentile, consistent with national benchmarks.
Product and engineering leadership often see 0.005%–0.01% ownership, reflecting a growing standardization in early-stage equity regardless of geography.
Because startups in the Midwest tend to raise smaller rounds at more reasonable valuations, employees often experience less dilution across fundraising cycles—meaning their equity slices hold more long-term value.
Chicago Is Winning the Talent Efficiency Game
One under-appreciated advantage of the Midwest talent market is stability.
Midwest startup employees bounce around less frequently, giving companies longer average tenure and reducing churn costs.
Hiring a senior operator in Chicago often costs 20–30% less in total comp than on the coasts, without compromising skill or output.
Chicago startups also benefit from a deep bench of boomerang talent AKA folks who’ve done stints in SF or NYC and bring back that experience at a lower cost basis.
📊 Chart of the Week
I came across this map of universities that have produced the most unicorn companies (valued at $1B+).
No surprise that many are in the Midwest. I counted over 190 unicorn companies with founders from our region.
Our goal should be to keep more of these founders here.
📆 Events Around the City
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Mic Check: A Podcasting Happy Hour
Tues
State of the Markets 2025: Navigating the New Venture Landscape
Tues
The Creator’s Lounge: Podcasting & Beyond
Tues
Humans Behind the Startup with Investor Experts
Weds
Chicago Growth Hacks Series: LinkedIn
Weds
CrewAI Enterprise AI Agent Week
Thurs
BioTech TechWalk
Thurs
Chicago SEOs
Hosted by Stephen Spiewak and Drive Capital
AND FUTURE DRIVE CAPITAL EVENTS TO HAVE ON YOUR RADAR:
Intercollegiate Demo Day
April 11
Hosted by Akylai and Drive Capital
Reach out if interested
AI Tinkerers #17
April 15
Hosted by Drive Capital
RSVP
Cofactor Healthcare Demo Day
April 28
Hosted by Cofactor and Drive Capital
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