Chicago's Biotech Hub Gets $100M Boost with Portal Innovations' New Fund

Chicago's bid to become a biotech hub has received a $100 million boost from Portal Innovations, which invests in biotech startups. The funds will be used to back startups spun out of universities across the US, particularly in light of potential federal funding cuts. Portal's third fund will be used for pre-seed and seed funding, with checks ranging from $250,000 to $10 million. The firm currently has 26 companies in its portfolio and 200,000 square feet of lab space.

Chicago's bid to become a leading biotech hub has received a significant boost with the announcement of a $100 million fund from Portal Innovations. The new fund, the third from the firm, will focus on pre-seed and seed funding for biotech startups spun out of universities across the United States. This move is particularly timely given potential federal funding cuts, as the Trump administration has proposed significant reductions to the National Institutes of Health, a major source of financing for biomedical research [1].

Portal Innovations, based in the trendy Fulton Market neighborhood, has been actively investing in life sciences startups and leasing lab space for their operations. The firm's offices in Fulton Market can be compared to the WeWork of science, featuring a number of labs and a trendy hangout area. The new fund will help the company expand its lab space to New Brunswick, New Jersey; Providence, Rhode Island; and Dublin, Ireland [1].

The firm's Velocity Fund has already attracted interest from its current partners, including the California State Teachers’ Retirement System, Morningstar Inc.'s billionaire founder Joe Mansueto, and SkyDeck Capital, the investment firm for Chicago billionaire Michael Polsky and his family [1]. The new fund will invest in startups with strong scientific potential in therapeutic areas, as well as converging technologies including quantum computing, artificial intelligence, and battery technology [3].

Venture capital firms have been increasingly focused on life sciences companies in Chicago, with about $350 million invested in 2024, a 70% increase from the previous year. Real estate investors have also taken notice, with the amount of life sciences space in the Chicago metro area expanding by 21% since 2021 [1].

Portal Innovations was founded in Chicago in 2020 and has since grown to include operations in Boston, Atlanta, and Houston. The firm currently has 26 companies in its portfolio and 200,000 square feet of lab space. The new fund is expected to close by the end of 2026, with checks ranging from about $250,000 to $10 million for pre-seed and seed funding, and $2 million for series A and $5 million to $10 million for series B rounds [1].

This funding initiative aims to fill the early-stage gap in university-based science, providing a crucial lifeline for startups as federal funds become uncertain. By doing so, Portal Innovations is not only supporting the growth of Chicago's biotech sector but also fostering innovation across the country.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/chicago-s-bid-to-become-a-biotech-hub-gets-100-million-boost
[2] https://www.nasdaq.com/articles/chicago-atlantic-refi-q2-eps-beats-9
[3] https://www.chicagobusiness.com/health-care/portal-innovations-launches-fund-close-gap-left-trump