1871 (company)

1871 (company)
Name	1871
Founded	2012
Founder	Chicago Innovation Exchange, Coleman Foundation (seed backers)
Headquarters	Chicago
Type	Private nonprofit incubator
Industry	Technology, Venture capital, Entrepreneurship
Website	1871.org

1871 (company) is a nonprofit startup incubator and entrepreneurship hub based in Chicago that supports technology startups, social ventures, and corporate innovation programs. Founded in 2012 and situated in Chicago's Merchandise Mart, it serves as a nexus for founders, investors, corporations, and universities from institutions such as University of Chicago, Northwestern University, and University of Illinois Chicago. 1871 operates coworking space, mentorship networks, and accelerator-like programs that connect entrepreneurs to capital, customers, and talent across the United States, Canada, and global markets including United Kingdom, India, and Israel.

History

1871 launched in 2012 with support from the Coleman Foundation, Mayor Rahm Emanuel's office, and corporate sponsors including United Airlines, PepsiCo, and AT&T. The organization was named after the year of the Great Chicago Fire, selecting a symbol of rebirth used by partners like the Chicago Tribune and civic groups. Early programming tapped networks from Chicago Board of Trade, Accenture, McKinsey & Company, and the Chicago Transit Authority to recruit founders and mentors. In its formative years 1871 hosted cohorts that later spun out firms funded by investors including Sequoia Capital, Benchmark Capital, Andreessen Horowitz, and Bessemer Venture Partners.

As 1871 expanded, it forged institutional relationships with Chicago Public Schools entrepreneurship initiatives, the Illinois Science & Technology Institute, and corporate innovation arms such as Commonwealth Edison's venture programs. Leadership transitions included executives from Techstars, Y Combinator, and regional accelerators; board members have included alumni of Goldman Sachs, McKinsey, and the Kellogg School of Management. In 2016 and beyond, 1871 relocated within the Merchandise Mart to scale capacity and to accommodate partnerships with entities such as UPS and CME Group.

Mission and Programs

1871's stated mission emphasizes scaling Chicago's entrepreneurship ecosystem by providing resources for founders in software, hardware, fintech, healthcare, and social impact. Core programs include a year-round membership model, themed incubators—e.g., FinTech cohorts linked to Chicago Board Options Exchange initiatives—and vertical accelerators focused on HealthTech, EdTech, and RetailTech. 1871 runs mentorship-driven programs with advisors from Ernst & Young, PwC, Deloitte, and startup founders from past cohorts who joined companies such as Grubhub, Groupon, and Sprout Social.

Special initiatives have targeted underrepresented founders through partnerships with organizations like Blackstone Entrepreneurs Network, the National Urban League, and veteran support from Veteran Affairs-aligned programs. 1871 also collaborates with university entrepreneurship centers including Polsky Center for Entrepreneurship and Innovation and Kellogg Innovation & Entrepreneurship Initiative to provide student ventures with prototyping, legal clinics, and business model support.

Services and Partnerships

Services provided by 1871 include coworking space, conference facilities, corporate innovation labs, pitch events, mentorship hours, and access to legal and accounting clinics staffed by partners such as Sidley Austin, Kirkland & Ellis, and Baker McKenzie. Strategic partnerships extend to venture capital firms like Lightbank, Chicago Ventures, and Hyde Park Angels to facilitate fundraising pathways. 1871 hosts demo days, hackathons, and challenges in collaboration with corporations including State Farm, Allstate, and Caterpillar to connect startups with procurement opportunities.

Global alliances include exchange programs with hubs such as Station F, MaRS Discovery District, and NASSCOM to enable cross-border market entry. 1871 operates corporate innovation programs that pair internal teams from firms like JPMorgan Chase, Walgreens Boots Alliance, and Abbott Laboratories with startup cohorts to pilot new products.

Funding and Financial Model

As a nonprofit, 1871 finances operations via a hybrid model combining corporate sponsorships, membership revenue, program fees, event rentals, and philanthropic grants from foundations like The Rockefeller Foundation and MacArthur Foundation. Major corporate sponsors have included Allstate, United Airlines, and Motorola Solutions which provide multi-year funding and in-kind services. 1871 also receives project-specific underwriting from state-level economic development agencies such as Illinois Department of Commerce and Economic Opportunity.

Revenue diversification efforts have included launching fee-based corporate innovation services and white-label accelerator offerings for partners like Accenture and PwC, along with philanthropic campaigns engaging donors from the Chicago Community Trust and alumni networks tied to University of Chicago and Northwestern University.

Impact and Recognition

1871 reports measurable outcomes such as job creation, capital raised by member startups, and corporate partnerships leading to pilots and procurement contracts. Alumni companies have raised venture capital from firms including Sequoia Capital and Bessemer Venture Partners and have been acquired by corporations like Grubhub and Walgreens. The organization has been recognized by publications such as Crain's Chicago Business and awards from regional economic development bodies like the Chicago Innovation Awards.

Academic studies and policy reviews from institutions like Brookings Institution and the Kauffman Foundation cite 1871 as a model for urban innovation hubs that leverage corporate-university collaborations. 1871 continues to shape Chicago's startup landscape through partnerships with public and private institutions, fostering connections between founders, investors, and corporate buyers.

Category:Non-profit organizations based in Chicago