Second City Is Second-Best City for Fast-Growing Businesses: Report

Chicago companies snagged 95 spots on the Inc. 5000 list of America’s fastest-growing private companies

Chicagoans mean business.

They mean so much business that city companies snagged 95 spots on the Inc. 5000 list of America’s fastest-growing private companies, second only to New York’s 205.

Chicago beat out top start-up hubs like San Francisco, which was ranked No. 7 with 63 companies. The second-place ranking is a step up for the city after coming in fourth last year.

Rounding out the top five cities on the list were Atlanta, Austin, Texas and San Diego.

California-based Fuhu, maker of an Android tablet for kids, took the number one spot for the second year in a row thanks to a growth rate of 158,957 percent over the last three years, a rare feat for the Inc. 5000.

This year's rankings are considered to be one of the most competitive in the list's history with companies needing to achieve a minimum of 918.59 percent in sales growth in the last three years.

The highest ranking Windy City company was MAX Digital, developer of a cloud-based marketing and retailing software for automotive dealers, which was ranked at No. 51 for a three-year growth rate of 5,483 percent. The company recorded a revenue of $6.6 million in 2013.

"Thanks to a great team we have been able to provide cutting edge technologies that are transforming traditional industry in consumer centric ways," said MAX Digital Founder and CEO Pat Ryan. "We look forward to even greater growth and innovation in the years ahead."

MAX Digital was also the third-fastest growing software company on the list.

"It's a tribute to the great work ethic and opportunities in the city of Chicago that has made them thrive on this very competitive list,"  Inc. Media President and Editor In Chief Eric Schurenberg said in a statement. " What surprises me, even though I know it’s coming, is the sheer variety of the paths our entrepreneurs take to success, thematically reflecting how our economy has evolved."

Eight other city companies ranked among the top 500 on the list, including:

  1. Insureon (No. 107)
  2. Paramount Lodging Advisors (No. 188)
  3. Protein Bar (No. 200)
  4. Restaurantware (No. 366)
  5. AKTA (No. 414)
  6. Response Team 1 (No. 422)
  7. RIPT Apparel (No. 441)
  8. Framework Communications (No. 442)

In addition to the nine Chicago companies, 10 suburban companies were listed among the top 500, with Elgin-based Compass Automation leading the group at no. 55.

Following Compass Automation was:

  1. LaunchPoint (No. 100)
  2. Market6 (No. 143)
  3. Total Technology Solutions Group (No. 148)
  4. Forte International Tax (No. 167)
  5. Blue Star Tec (HNo. 221)
  6. Ameez Technologies (No. 370)
  7. Four Seasons Home Services (No. 393)
  8. Startex Industries (No. 397)
  9. Strategic Mobility Group (No. 496)

Howard Tullman, CEO of Chicago's 1871 tech incubator, said the results confirm Chicago is a "prime place for entrepreneurs."

The Inc results confirm that we're building solid businesses, creating "innovative products and services that are generating steady revenue, adding new jobs, and fostering growth across the economy," he said in a statement.

Illinois ranked sixth for states with the most companies on the list, leading the Midwest with 238. California topped the list with 694 companies, Texas followed with 404, New York with 335, Florida with 202 and Virginia with 284.

“There is great momentum building among Chicago’s small and medium sized businesses," World Business Chicago President & CEO Jeff Malehorn said in a statement. "Companies thrive here due to the city’s diverse economy, easy access to the world, and unmatched talent base."

For the full list of Inc. 5000 companies, click here.

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