Illinois Growth and Innovation Fund (ILGIF)

Illinois Growth and Innovation Fund (ILGIF)

Founded in 2016 by Illinois State Treasurer Michael W. Frerichs, the Illinois Growth and Innovation Fund (ILGIF) was created as a state-sponsored venture capital vehicle designed to invest in Illinois-based companies. The fund emerged from the state's broader economic development program to keep high-growth firms from leaving the region for coastal capital. ILGIF receives capital allocations from the Illinois state treasury, drawing from public funds managed by the treasurer's office. ILGIF deploys capital across venture stages, from early-stage through growth equity, with a focus on technology, healthcare, and advanced manufacturing. While specific holdings are not routinely disclosed, the fund's strategy emphasizes direct investments in Illinois companies, with some co-investments alongside established venture firms. Eric Lefkofsky, co-founder of Groupon and Tempus, has participated in ILGIF events; Lee Shapiro, managing partner at 7wireVentures, has also engaged via fireside chats. The fund operates from Springfield, Illinois, with its investment team structured within the state treasurer's office. The Wedge Innovation Center, a mixed-use development in Alton, Illinois, appears as a related asset. As of 2023, ILGIF hosted its annual summit, with keynote speakers and panels on regional innovation. What distinguishes ILGIF from typical venture funds is its structure as a state-sponsored operating fund, accountable to taxpayers rather than private limited partners. This may enable it to hold longer investment horizons and accept lower return thresholds in exchange for economic development outcomes.