​Back in October, Sente along with Helsinki-based partner, LandInChicago, ran a 12-week market entry program designed exclusively to bring Finnish growth companies, like Redland, Qentinel and NOOA, to the US market. Their entry point - Chicago. Their homebase - 1871. 

​I recently got the chance to catch up with Jonne Hirvonen - VP of Sales of the innovative digital agency, Redland, that [now] brings Scandinavian design principles to small/medium sized enterprises across the US. During our chat, Jonne discusses his decision to bring Redland to Chicago, who he networked with along the way and how he thinks Silicon Valley and Chicago compare. ​

- Related - 

      "Why International Startups Should Choose Chicago As Their Entry Point Into The U.S. Market"

 
 By Charlotte Waldmeir (@cwaldmeir), Content Strategy for Sente Advisory (@Sente_Advisory)
 
Chicago has made a steady climb as one of the fastest growing startup ecosystems in the world. Since 2012, the city made a nice hop skip and a jump from #10 to #7 in its ranking and is just getting started. According to INC 5000’s list of top cities for fast growing companies, Chicago is home to 104 of America’s private companies plus a total of 37 Fortune 500 companies like Boeing, State Farm and most recently, Kraft Heinz Co.. With a central location, affordable living options and quick Uber from two of the world’s major airports, Chicago serves more than deep-dish pizza.
 
“Chicago is a fast growing startup hub with a long and remarkably strong technology innovation heritage” says Serhat Cicekoglu, Founder of the international startup accelerator, Sente Advisory.  “With its access to a very large base of customers in close proximity compared to other ecosystems, Chicago gives startups from overseas a great opportunity to test their growth hypothesis.”
 
That “strong innovative heritage” Serhat mentioned is more than meatpacking, skyscrapers and the wireless remote control (you’re welcome). Chicago is home to one of the largest innovative hubs in the world - 1871. Every day, over 400 early-stage high-growth digital startups set up shop on the 12th and 13th floor of Chicago’s tech epicenter, the Merchandise Mart, to “test their hypothesis” amongst a city of builders, investors and experts.
 
Since its first breath 4 years ago, the 1871 community has focused much of its attention on fostering global startup collaboration by housing international accelerator Sente Advisory and the 12 week intensive start-up accelerator program LandInChicago - programs that make U.S. market-entry possible.
 
“1871 is proud to host these international companies as they hit the ground running in the U.S. market," said Howard Tullman, CEO of 1871. "We believe that Chicago is the best point of entry into the U.S. market because our ecosystem offers access to customers and capital alike, as well as significant support and mentorship. This cohort represents our commitment to bringing new minds and great talent from all over the world to Chicago, and we congratulate Sente and LandInChicago on their success."
 
After a 6-week boot camp back in Helsinki, LandInChicago’s inaugural cohort of top selected Finnish tech startups - Redland, NOOA & Qentinel - entered into Chicago the same day as the Chicago Marathon to hit the ground running. With 1871 as their starting line into the US market, they will go through a rigorous business development training, shake hands with potential investors and collect advice from their industry’s mentors. Their “Chicago Marathon” finish line: a demo day on Oct 19 hosted at 1871.
 
Despite their sweat and dedication, there's a chance that their choice of starting line could become their achilles heel. So why start in Chicago?
 
For LandInChicago member startup, Qentinel, a software company that combines the robustness of industrial quality management with the agility of the digital work, Chicago is the mecca of quality in the digital age.
 
Qentinel’s Founder, Esko Hannula states, “Chicago and Illinois are home to many great companies that are now leading the fourth industrial revolution. We want to be a part of it. And a program like LandInChicago can save a lot of time and money for a new entrant.”
 
Esko’s right. Just this past September, digital transformation leaders in big-data analytics, the Internet of Things (IIoT) 3D printing, artificial intelligence and other emerging technologies gathered together at the Smart Industry 2016 conference, in Chicago. Those that attended represented GE, Emerson, Siemens, Intel and Uptake Technologies, a Chicago-based predictive analytics Saas platform provider (named Forbes Hottest New Startup in 2015).
 
And again, why the windy-city versus other tech hubs in the U.S.? According to Smart Industry publisher, Tony D’Avino, “Chicago is a natural hub for our annual event, as the most exciting digital-transformation initiatives and the most innovative minds can be found here."
 
Like inside Chicago’s top universities. “Chicago is home to some of the best universities, like University of Chicago and Northwestern, which creates an incredible talent pipeline. Thousands of students each year are looking for internships and full-time positions,” says Senior Director of University of Chicago’s entrepreneurial center, The Polsky Exchange, Kristin Barrett. “They are able to gain experience in entrepreneurship through University of Chicago’s Polsky Center for Entrepreneurship and Innovation and Northwestern's The Garage. University of Illinois Urbana-Champaign also graduates more computer science students each year.”  
 
The three universities mentioned above (plus Illinois Institute of Technology, Loyola University Chicago, DeVry University and most recently, DePaul University) all have satellite offices located inside 1871. This kind of access right in one watering hole only helps when looking for top talent to join the team and recruit business advice. And if Chicago-based startups need a break from this force of (windy) nature? Just head southwest to Champaign, Illinois, a city voted by Forbes Magazine as the top best places for business study. Here you can visit UIUC’s Research Park that brings in more and more corporations like Deere and Abbott in each year to work side by side with it’s member startups.
 
“The most successful startup hubs benefit from strong connections to major universities, and Chicago’s got a great advantage there” says University of Chicago Booth Business School graduate and Sente Advisory COO, Gerod Carfantan. “This strong foundation emphasizes Chicago’s analytical rigor and creates invaluable connections between startups, corporations, governments and educational institutions.” A recipe for success when an international startups decides it’s time to scale in the United States.

​How is Chicago’s startup scene measuring up to current investment trends?

​Chicago has the highest growth index of all US entrepreneurial ecosystems according to the 2015 Compass Report. A separate 2015 report from investment firm CBRE puts the windy city as the 5th largest and 11th fastest-growing tech market in the country.  Adding to that, Chicago is second place on the list of Top Cities for Fast-Growing Companies  for the second year in a row with 104 private companies on the Inc. 5000.

According to Dow Jones VentureSource, last year Chicago's local companies received $862 million. While it was a top year for Chicago, there is still catching up to do. The receipts elsewhere--New York $5.3 billion, Los Angeles $2.3 billion, Boston $4.1 billion and Seattle $1.2 billion--have quite the leg up on Chicago.

What is the new frontier for continued growth? Sente Advisory believes the answer is more international influence. We want Chicago to become the most welcoming place for international startups and talent to land and launch in the U.S. market.

International influence

Investment trends cited by Inc. include reinventing the services economy, digital currencies, innovative hardware, the internet of things, crowdsourcing, and more. To us at Sente, the most compelling trend Inc. mentions is “going global”.

Global companies and global markets are the future. Founders can no longer wait to consider international expansion. Local trailblazers abroad, like Rocket Internet, have shown they can quickly copy the best ideas. Clones of Zappos, EBay, and Square have been incubated by Rocket Internet throughout Europe.

Venture firms and accelerator programs are looking to scale internationally to attract international talent to the U.S. and leverage global networks to scale U.S. companies worldwide.

Techstars built a global network with 18 programs around the globe. This global presence has been critical in differentiating their accelerator from other programs. 500 Startups launched new multi-million dollar funds across Europe, Asia, Latin America, Middle East and North Africa hoping to connect and attract the best talent from around the globe.

The Silicon Valley Competitiveness and Innovation Project 2015 report demonstrated an impressive 70% of Silicon Valley software developers are foreign born. According to a report by the Partnership for a New American Economy, 40% of Fortune 500 companies were founded by immigrants (90 companies) or by their children (an additional 114 companies).

According to Forbes report of quarterly data from Gust, U.S. startups represented 4% less of the total share of the world’s high-growth startups than in the previous quarter. Still, U.S. startups account for a majority. Though, a significant portion of startups seeking funding were from emerging market economies. India, Canada, and France rank two, three and four. Germany and Estonia stayed in the Top 10, where Australia was knocked out of the Top 10 by Romania which jumped to the fifth spot.

Sente Advisory’s approach to bringing in international talent

Sente brought 5 cohorts of top Turkish companies to 1871 Chicago in the last two years. Here are just some of the highlights of their influence.

Sente’s alumni have raised over $9.9M in funding, generated over $54M in revenue, and are operating in 41 countries to create jobs and deliver solutions. Several have since opened their US offices and are creating opportunities here.

From the third cohort, Boni became Apple’s indoor Maps vendor. They are about to complete product integration with a partner in Texas, as well as planning a pilot implementation for O’hare Airport and Merchandise Mart.

In the January 2016 ITU GATE cohort, Monument, the first A.I. hardware solution that is a personal cloud for photos and videos, became an Amazon Exclusives partner at CES. Tech.co has them on the list to possibly be the top startup at CES. Technori asked them to pitch at their Winter Showcase, To top it off, their Kickstarter campaign received 5,029 backers raising more than $700,000 making Monument the second most funded project on Kickstarter's technology category from Chicago. 

What’s next for Chicago as an international hub

Sente is based out of 1871 which is branding itself as a stopping place and hub for international technology companies, political leaders and talent. It has developed partnerships with co-working spaces in London, Tel Aviv and Mexico City.

Sente aims to help, and Turkey is just the start. Sente will bring in more accelerators created in partnership with universities and institutions in additional emerging entrepreneurial ecosystems in top international markets.

Sente just launched a new program in Finland called LandInChicago for new cohorts of Finnish startups. Each of Sente's programs are designed to bring new business from all around the world to the U.S. with 1871 Chicago as their launch pad.

Serhat Cicekoglu, founder of Sente Advisory, speaks to future plans: “What we have done with the Turkish Startup community can be done in all emerging ecosystems worldwide. Sente can identify, and bring to Chicago, top international talent and innovation that can add significant economic value to the regional and national economy.“

To learn more about what Sente Advisory is doing in Turkey and elsewhere in partnership with 1871, please feel free to reach out and contact Sente’s team at [email protected].  Stay tuned for more Sente led international activity and buzz coming to 1871 Chicago in the near future.

Turkey has launched into the global entrepreneurship scene, grabbing the attention of the top startup communities worldwide.

Successes like the acquisition of GittiGidiyor by eBay for over $200 million in 2011 and Trendyol closing a sizeable $26 million funding round from notable Silicon Valley VC Kleiner Perkins, caught the attention of heavyweights Y Combinator, 500 Startups, and Intel Capital. Since 2011 all of these investment funds have backed ideas coming out of the region. In 2015, Delivery Hero, billion-dollar takeout food service based in Berlin, acquired Turkey’s Yemeksepeti for $589 Million to set the bar going into 2016.

Turkey’s growing track record of high-potential startups
Both inside and outside of Turkey’s borders, people are noticing the opportunities that a fast-growing, developing market can churn out.

At an international level, 500 Startups announced the creation of 500 Istanbul, a $15M micro-fund that will invest in more than 100 Turkish startups in the next several years. 500 Startups already invested in eight companies founded by Turkish entrepreneurs: Udemy, Socialwire, Parlakbirgelecek, Connected2.me, Boostable, Adphorus, Mobile Action, and Koding.

In 2013, TelecityGroup, Europe's industry-leading provider of carrier-neutral data centres, acquired SadeceHosting, the leading provider of data centre and hosted services in Turkey. In 2014, Monitise, a UK-based company that builds and rolls out mobile payment solutions, acquired Turkish mobile commerce technology provider Pozitron for $100 million as a deal to expand throughout the middle east. In both deals, Tukey was cited as particularly attractive as a rapidly growing digital economy at the intersection of Europe, Asia and the Middle East.

Local VCs, such as 212 Capital and Revo Capital, and government-funded technoparks are incubating startup growth as on-the-ground engines to fuel the next big success. One such technopark, ITU ARI Teknokent, seeks to expand the local ecosystem by opening programs and services that connect local business to international markets. Chicago has been their first point of interest.

Turkish startups come to Chicago
ITU ARI Teknokent’s ITU GATE International Accelerator Program selects the best growth stage startups in Turkey to accelerate and launch into the US market.

To do this, ITU ARI Teknokent partners with Sente Advisory as 1871’s exclusive and official international program partner to give business development and acceleration services. The ITU GATE program is specifically aimed at readying companies for entry into the U.S. market.

The final phase of their accelerator program is a month in the USA-- three weeks in Chicago and one week in San Francisco, followed by ongoing support for the alumni of the programs.

The time in Chicago and San Francisco is filled with face-to-face meetings with potential clients, business partners, and investors. The capstone to each leg of the trip is a Demo Day showcase for the local business community.  

Demo Day at 1871 Chicago
On January 21, 2016, 1871 hosted the ITU GATE Demo Night showcase of nine of Turkey’s most successful startups to Chicago.

The event was a meeting of investors, executives, thought leaders and key stakeholders. The distinguished panel of judges included Chris Bordeaux the COO of Techweek Chicago, Jim Spinello CEO of Birdsong Ventures, Matty Francis the Director of Healthbox, Aziz Lalljee the Managing Director at VentureDNA and Robert Okabe the Managing Director at RPX Group, among others listed here.

Keynote speakers were Professor Mohanbir Sawhney from Kellogg School of Management and Jason Fried, Founder and CEO of Basecamp. Discussion centered around furthering international opportunities between entrepreneurial communities and literally opening doors to new markets between the Chicago and Turkish ecosystems.

Mohanbir Sawhney commented on the value the ITU GATE startups and Demo Day brought to Chicago: “When you put people who come from different perspectives, from different markets, and from different cultures together, you get richer outcomes. These Turkish companies can provide insights into success in emerging markets, and that is important because those markets are the future. The startups here tonight had global products with global ambitions. This exchange is something we need to do more often.”

Chicago is a growing global hub
This was the third year and 5th group of Turkish startups to Chicago by Sente International Startup Accelerator and 1871.  As for location, 1871 is the perfect host.  A new ranking by Swedish business incubator research group UBI Global ranked Chicago's 1871 as the top university-affiliated incubator in the US, and second in North America. 

Sente's Demo Day event is an example of Chicago’s growing dominance, not only as a domestic hotbed of entrepreneurship, but as an international focal point for global startup. The 2015 Compass Report found Chicago is the highest growing US entrepreneurial ecosystem in the world.

This prominence is due to its thriving, globally-connected community and exclusive collection of fast growing startups generating buzz and entrepreneurial attention such as Uptake, Groupon, GrubHub, Raise, and Avant.

To learn more about what Sente Advisory is doing in Turkey and elsewhere in partnership with 1871, please feel free to reach out and contact Sente’s team at [email protected].  Stay tuned for more international activity led by Sente and new countries joining the program in the near future.