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Why Healthcare Startups Have an Edge in Chicago

AND 13 events happening in Chicago

✍🏽 Welcome to Landon’s Loop: your weekly read on Chicago startups!

In this week’s newsletter #107:

- Illinois moves closer to lifting its ban on large-scale nuclear development

- Reasons why Chicago is the best city to launch a healthcare startup

- 13 must-attend tech events in Chicago this week

- Nuclear covered 109% of demand in Northern Illinois

Estimated Read Time: 5 Minutes

🔙 Highlights from Last Week

Illinois is moving closer to repealing our large-scale nuclear ban 👇🏽

Senate Bill 1527, which would life our state’s ban on building net new large nuclear reactors is under review and gaining support, including from Governor Pritzker. If passed, it would open the door for 1GW+ reactors to help meet rising energy demand.

We hosted the Cofactor Demo Day 👇🏽

The point of this meetup was to connect local healthcare startups to major health systems in a Shark-Tank like competition.

Nuclear generation in Northern Illinois averaged 108.7% of total electricity demand 👇🏽

For about 36% of the day, nuclear alone could have fully met the region’s power needs.

Why Healthcare Startups Have an Edge in Chicago

Last week, we hosted the Cofactor Healthcare Demo Day at Drive Capital, where nine startups pitched to leaders from six major Chicago health systems.

It was a clear reminder: in healthcare, raising capital is just one piece of the puzzle. What founders really need is clinical access, pilot partners, and distribution.

Chicago offers all three under one roof.

With world-class hospitals, top med schools, and one of the most diverse patient populations in the country, Chicago isn’t just a great place to build, it’s the best place to prove your model works.

Here’s why more healthcare founders are choosing Chicago as their launchpad:

Powerhouse Health Systems with Built-in Distribution

Chicago has some of the nation’s most powerful health systems, each with billions in revenue, deep research affiliations, and active support for startups.

  • Northwestern Medicine, a $9B+ system connected to the Feinberg School of Medicine, invests directly in innovation through the Mansueto Innovation Institute.

  • Rush University System for Health, generating over $3.3B annually, is nationally recognized for its focus on health equity and has partnered with Medtronic to drive innovation while also managing its own community-focused Impact Fund.

  • Endeavor Health, a newly formed $5.6B network, has awarded over $30m in community health grants and promotes internal innovation across its hospitals.

  • UChicago Medicine, based in Hyde Park and bringing in $3.1B in revenue, is deeply integrated with the Polsky Center and its Deep Tech Ventures Fund.

  • Advocate Health Care, our state’s largest system with $7B in revenue, invests through a corporate venture arm and supports startups via strategic partnerships, including with MATTER.

These aren’t just passive institutions. They fund startups, run pilots, and can be early customers.

A Full Stack of Innovation Infrastructure

Chicago gives healthcare founders everything they need to build, test, and scale impactful solutions.

Just west of downtown, the Illinois Medical District spans four major hospitals, two medical schools, and 40+ healthcare organizations, making it the largest medical district in the country and an unmatched proving ground.

Another group is MATTER, a healthcare-focused incubator that has supported 1,000+ startups, giving them direct access to health systems, payors, and industry mentors.

On the capital side, university-linked initiatives like Deep Tech Ventures at the Polsky Center offer founder-friendly funding tied to world-class research.

At Drive Capital, we invest across the entire healthcare journey from seed stage to IPO. My partner Molly, who helped build Livongo from the early days, now leads our healthcare strategy.

In Chicago, the infrastructure to build a healthcare company is here.

Proof Points from the Flywheel

In Chicago, your first check, first pilot, and first champion might all come from the same block.

  • ThoughtfulAI, which automates back-office workflows, launched with traction from local health systems.

  • Livongo, a pioneer in digital chronic care, ran early programs here before scaling nationally and exiting to Teledoc for $18.5B.

  • NOCD, focused on virtual OCD therapy, validated its clinical approach with academic and hospital partnerships across Chicago.

  • Tempus, one of the world’s leading precision medicine companies, grew by tapping into our city’s health data infrastructure and institutional collaborations.

When health systems act as early customers, investors, and distribution partners, founders get a unique edge from idea to impact.

📆 Events Around the City

But first, a word from this week’s sponsor Notion:

Want unlimited AI, ASAP?

Get up to 6 months of Plus plan + unlimited AI free!

Launch and scale your startup faster with Notion.

Visit the Notion for Startups page to get the offer.

AI + Pitches with DeepMind and Shark Tank

  • Hosted by Drive Capital, DeepMind, and Shark Tank

  • Monday (today)

  • 20 available spots. First come first serve. Must be an AI founder actively building

  • Reply to this email to request an invite

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ScaleUp 2025

Fireside Chat with Samantha Lee, Chief of Staff at Discover Payments, and Landon Campbell

🗞 Previous Newsletters:

👋 See you next week!

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