Illinois is the Midwest leader in venture capital investment creating new jobs, new products and services, and new approaches to living healthy lives. Policy makers in Illinois have historically partnered with the private sector in creating the Illinois VC ecosystem through the Illinois Growth and Innovation Fund (ILGIF) and deploying tools such as the Illinois Angel Investment tax credit program and a host of other thoughtful and forward-thinking policies. Since 2000, member firms of the Illinois Venture Capital Association (IVCA) have invested in more than 900 Illinois-headquartered companies, helped create more than 370,000 jobs, and supported business that have raised more than $129B in capital. According to the Chicagoland Chamber of Commerce : Chicago is one of America’s leading tech hubs with 18% growth in the tech workforce in the last decade. Chicago’s tech ecosystem is essential to the city’s economy , employing over 106,000 people – 8% of the Chicago workforce – and spurring significant economic activity and hundreds of millions of dollars in tax revenues for our state and local governments. The tech ecosystem grew 18% in Chicago over the past decade compared to the overall economy , which saw growth of just 1%. Tech has also demonstrated greater resilience and supported Chicago’s recovery during the COVID-19 pandemic. The growth is due in part to new start-ups, but also because tech cuts across every industry in Chicago, from government to health care, Fortune 500 and small and mid-sized businesses. Drawing people to Chicago are the region’s deep bench of talent from local universities, a diverse workforce pipeline, central location, and affordable cost of living. However, Illinois trails nationally, receiving only .8 to 1.0% of venture capital dollars (NVCA data) invested even though Illinois population is ~3.7% of the country and Illinois GNP is ~3.9% of the country, compared to New York which receives ~9.5% and Massachusetts ~5.1% of venture capital funding ILLINOIS PROGRESS PUT AT RISK SB 3019 (PA 104-0468) (calendar 26 / FY27 revenue omnibus) included a provision which decoupled Illinois from the federal tax code Section 1202 Qualified Small Business Stock Exclusion (QSBS) which jeopardizes future VC investment in Illinois. Recognizing and acknowledging the delicate balancing act required to produce a revenue omnibus, the Illinois Venture Capital Association encourages the legislature and the administration to repeal this provision in the Fall veto session until it can it be studied further. The introduced bills including provisions to decouple QSBS were not subject to legislative due diligence or stakeholder comment. SB 3796 was never referred to a standing committee; HB 5125 was sent to the Revenue Committee briefly and then returned to the Rules Committee. Illinois entrepreneurs deserved an opportunity to inform legislators prior to this provision being included in the final hours of the session in a must pass bill. The benefits from QSBS only occur for investments made for at least 5 years (and in many cases much longer). The objective of QSBS is to encourage long-term investments in innovation and entrepreneurship which turns into economic growth and job creation. Investments made 5 or more years ago will now be taxed, even though there was no expectation of that when the investment was made. A retroactive tax on investors who made long-term, good-faith investments sends a negative signal to the business community. And it creates a huge incentive for investors, founders, and companies to invest outside Illinois or relocate out of Illinois. The long-term ramifications for future investments could be even more dire with fewer dollars being invested in Illinois and the best entrepreneurs and investors relocating elsewhere. As noted above, Illinois receives about 25% of the dollars it should based on population and GNP. Keeping this provision is very likely to further reduce this key statistic. Failing to address the 1202 provision in SB3019 makes Illinois vulnerable to losing its leadership position in the Midwest over the long term. WHAT QSBS DOES QSBS traces its origins back to 1993 and the Clinton administration. It subsequently was improved by Democratic majorities in the U.S. Congress in the Small Business Jobs Act in 2010 and signed into law by President Obama (The Obama Jobs Act). Supporters of this provision in SB3019 have argued this was in response to H.R. 1, the recently enacted federal budget legislation. What it really did was reverse years of pro-business policies largely attributed to Democratic legislatures and presidents. QSBS offers incentives for investment in early-stage growth companies. It has been extremely successful in getting startups off the ground and into the economy which has benefitted entrepreneurs, employees, investors, and consumers working with those products and services. SpotHero and Grubhub are just two examples of companies created in Illinois where QSBS played an important role in their creation and growth. ILLINOIS SHOULD RESTORE OPPORTUNITY The IVCA encourages Illinois policy makers to repeal the decoupling provision for QSBS in SB 3019 and continue to offer reasonable and meaningful tax incentives to startup companies. It is noted that California is one of the states which has also “decoupled” – this is a genuine and rare opportunity for Illinois to potentially capture VC and startup activity which might otherwise take place in California -- the state of New Jersey rejected efforts to decouple, opting to offer the incentive for VC investment in the state. The IVCA looks forward to working with you to evaluate the opportunity to restore this important economic development provision in state law and to further work with you to advance an Illinois economy which welcomes the ideas and the jobs of the future.  QSBS HISTORY ILLINOIS DECOUPLES FROM 1202 ILLINOIS IMPACT FROM QSBS Questions? Please contact Dave Stricklin (312) 771-2562 / david@stricklinassociates.com

With October upon us the 2026 IVCA CFO Summit is two weeks away on October 22nd. The Summit is designed for finance and operations professionals working in Private Equity and Venture Capital, with an emphasis on expert-led sessions covering many topics including economic trends, tax developments, fund operations, valuations, fund formation, and emerging technologies. The Summit is open not only to CFOs, but also Chief Compliance and Operating Officers, Controllers, Finance/Accounting, Fund Operations Leaders and Investor Relations/Administration Professionals. With the economy spinning in different directions everyday, oriented in geo-politics, resource costs and other significant trends, what are the major issues for the CFO and other finance professionals? The online financial press and podcasts weigh in … FidelityPrivateShares.com , ‘The Startup CFO Landscape in 2026’ From March, some general information: “In 2025, CFOs did not chase growth. They protected it. Capital remained cautious. AI moved faster than most organizations could operationalize it. Hiring slowed, but expectations of finance leadership expanded. CFOs were asked to steady the business, modernize systems, manage risk, and support long-term strategy, often simultaneously.” READ MORE: https://www.fidelityprivateshares.com/blog/the-startup-cfo-landscape-in-2026 PrivateFundsCFO.com , ‘About Private Funds CFO’ Website resource dedicated wholly to the PE CFO: “Private Funds CFO is a dedicated intelligence service for CFOs and professional responsible for financial, operational and legal functions within Private Equity.” READ MORE: https://www.privatefundscfo.com/about-private-funds-cfo/ Evanta.com , ‘Top 3 Priorities for CFOs in 2026’ In 2026, Chief Financial Officers (CFOs) are navigating a rapidly evolving business landscape shaped by digital transformation, economic uncertainty, and the accelerating adoption of AI and automation. READ MORE: https://www.evanta.com/resources/cfo/survey-report/top-3-priorities-for-cfos-in-2026 ModusAlliance.com , ‘CFO Priorities 2026: The Finance Leader as Orchestrator’ The top CFO priorities for 2026 are digital transformation of the finance function, AI integration, workforce restructuring, and managing a complex tax and regulatory environment. Finance leaders are simultaneously deploying AI agents to automate close cycles, absorbing the One Big Beautiful Bill Act’s sweeping tax changes, monitoring Pillar Two obligations for any cross-border operations, and rebuilding talent pipelines that have been thinning for years. READ MORE: https://modusalliance.com/insights/cfo-priorities-2026/ HighRadius.com PODCAST , ‘CFO Circle Podcast’ This video-podcast series brings you conversations with mid-market CXO leaders to identify and solve challenges at CFO office with automation and emerging tech. LISTEN MORE: https://www.highradius.com/resources/cfo-circle/video-podcast/ The Growth Minded CFO PODCAST , ‘CFO as Growth Architect & Strategic Partner’ The Podcast for finance leaders who want to growth leaders. The Growth-Minded CFO podcast challenges the status-quo and explores how the best CFOs approach their work and lives. LISTEN HERE: https://www.youtube.com/@TheGrowthMindedCFO The 2026 IVCA CFO Summit is now open for registration and is FREE to all IVCA members, and will take place on October 22nd, 2026. Click on CFO for more information and instructions to register.

During the 2026 legislative session, Illinois eliminated its state-level tax treatment for Qualified Small Business Stock (QSBS), effectively decoupling from federal Section 1202. While eligible investors may still receive the federal QSBS exclusion, gains that qualify for exclusion at the federal level are now subject to Illinois income tax beginning in 2026. Additional Resources Plante Moran Analysis of Illinois QSBS Taft Law Analysis of Illinois Section 1202 Changes Why It Matters QSBS has long served as an important incentive for investment in early-stage companies by rewarding investors who provide patient capital to startups and emerging businesses. IVCA has consistently communicated to policymakers that QSBS helps attract investment, support innovation, and improve the likelihood that high-growth companies choose to start and scale in Illinois. IVCA QSBS VALUE IVCA Advocacy Efforts Since passage of the legislation, IVCA members have engaged with legislators and state officials through meetings, calls, and policy discussions to convey the potential impact of the change on Illinois' entrepreneurial ecosystem. While policymakers have acknowledged the economic contributions of the venture capital industry, restoring Illinois' QSBS treatment remains a significant challenge given the state's ongoing budget pressures and revenue needs. IVCA's message to policymakers is straightforward: Illinois' economic future depends on its ability to attract and retain investment capital. Policies that increase the cost of investing, reduce incentives for entrepreneurial risk-taking, or single out investors for additional taxation send the wrong signal to the marketplace. Investors evaluate opportunities across state lines every day. Tax policy, regulatory certainty, and overall business climate matter. If Illinois develops a reputation as a less favorable place to invest than neighboring and competing states, the result could be fewer dollars invested in Illinois companies, fewer startups reaching scale, and fewer jobs created here at home. At a time when states across the country are aggressively competing for entrepreneurs, emerging businesses, and growth capital, Illinois should be strengthening its competitive position and supporting the investment activity that fuels innovation and economic growth. What We're Watching The Illinois General Assembly will return for Veto Session later this fall, followed by the January 2027 lame-duck session and the start of the 105th Illinois General Assembly. IVCA will continue monitoring legislation affecting venture capital, private equity, innovation, and investment activity in Illinois and will keep members informed of significant developments. At a time when competing states are actively courting entrepreneurs and investment dollars, Illinois should be working to attract capital, not create additional barriers to investment.

The scholarship application for Cohort 24 (Feb. 2027) of VC University will be open Wed., Oct. 7 through Wed., Oct. 14. Quick refresher : Led by Venture Forward, this scholarship program provides emerging VCs from nontraditional backgrounds with full tuition to the industry-leading, online certificate program on VC fundamentals plus access to a mentorship program. VC University is co-led by NVCA, Berkeley Law Executive Education, Stanford Law Executive Education, and Venture Forward. Details and resources for easy sharing, below: About the scholarship: Who's it for : Aspiring and early-career U.S.-based VC investors from nontraditional backgrounds seeking a structured intro or refresher on VC fundamentals (Full applicant criteria, here ) Cohort 24 : Starts Feb. 1, 2027 Application deadline : Oct. 14 Learn more and apply

Throughout 2026, new member participants in the Illinois Venture Capital Association (IVCA) will keep it expanding. These new members also will give the current membership new opportunities for networking … in addition to optimizing support and partnerships … which leads to guidance and new ideas for Venture Capital, Private Equity and the support industries. The latest new member is Twin Bridge Capital Partners, “an established Private Equity investment firm, majority owned by its employees, investing through buyout funds, direct equity co-investments, and GP-led secondary investments, partnering with talented sponsors and management teams building sustainable, growing businesses.” The following is a Q&A profile with Twin Bridge Capital Partners , which explores the firm’s background and their expectations for interacting with the IVCA. New Member: Twin Bridge Capital Partners Representative: Zach Schneider, Partner IVCA: What is a brief history of and background of Twin Bridge Capital Partners ? Twin Bridge Capital Partners: Founded in Chicago in 2005 with the backing of a Fortune 500 insurance company, Twin Bridge Capital Partners was established to invest across the North American buyout market. The Firm initially focused on primary fund investments and equity co-investments alongside leading North American buyout managers. Over the past two decades, Twin Bridge has expanded its capital base, product offering, team and investment capabilities. Today, the Firm has more than 20 employees, has raised more than $5.4 billion of capital, and offers three distinct investment products focused on North American buyouts. IVCA: Why did the firm decide to join the Illinois Venture Capital Association? Twin Bridge: Twin Bridge is focused on continuing to build its brand, network, knowledge base and reach as we grow the business, and we believe the IVCA provides an attractive platform to advance these objectives. We also seek to be active participants in the communities in which we operate and believe we can both contribute to and benefit from the IVCA and its member firms. More broadly, we look forward to leveraging the IVCA’s reach to help support the continued growth and development of Illinois’ Private Equity and Venture Capital community. IVCA: Your firm's focus in on North American small and lower middle market businesses. What is the current status of those types of American enterprise, and how do you research the marketplace? Twin Bridge: The North American small and lower middle market buyout landscape remains as dynamic as ever, with more capital and opportunity than at any point in our firm’s history. As a result, competition for attractive investment opportunities, strong returns and talented professionals has also never been greater. In this environment, our investment team remains highly focused on research and relationship development, supported by our proprietary in-house analytics and relationship intelligence platform, TBHub. Our team spends significant time meeting with managers, intermediaries and other institutional investors to stay current on market trends, developments and emerging opportunities. We combine these market insights with our proprietary data and relationship intelligence to identify and underwrite opportunities that we believe can generate attractive long-term investment outcomes. IVCA: The firm lists six guiding principles ... Partnership Approach, People First, Focused Strategy, Unwavering Alignment, Long-Term Focus and Commitment to Integrity. How did the firm evolve to these important six, and what do you feel is the one principle that shapes and guides the rest of them, and why? Twin Bridge: These six principles reflect who Twin Bridge has evolved to be and the qualities we value most in our partnerships. They guide our daily activities and underpin the decisions we make across the Firm. If we had to identify one overarching principle, it would be Trust. Without trust, we believe the other principles cannot fully take hold. Trust is embedded in each of our six guiding principles and is fundamental to how we seek to build lasting partnerships with all of our stakeholders – including our employees, investors, sponsor partners, portfolio companies and their management teams, and intermediaries. At its core, ours will always be a relationship business. We believe enduring relationships are built on trust, and that trust is earned over time through consistency, integrity and alignment. IVCA: The firm's experience is touted in identifying select sponsors who align with long-term investment philosophy. What is your vetting process for that identification and what is an example of an instinct based on experience that yielded a long-term sponsor alignment? Twin Bridge: We combine robust data and analytics — the ‘science’ — with deep relationship building – the ‘art’ – throughout our sourcing and underwriting process. This approach often leads us to identify ‘diamonds in the rough’ where others may not yet see the opportunity. Over more than two decades and 150+ fund investments, we have developed relationships with many sponsors based on information that others may have found less compelling, but where our experience and analysis led us to believe the future could look meaningfully different from the past. While we certainly do not get every investment right, some of our longest-standing sponsor relationships originated from precisely these situations. We believe our experience helps us recognize those opportunities, and we remain focused on finding the next one. IVCA: The firm's portfolio lists a wide variety of business concerns. Whether it's a fitness company or a biosciences practice, what commonality is the firm seeking to create the synergy of an offer to invest? Twin Bridge: While our portfolio companies operate across a broad range of industries, we are ultimately seeking the same fundamental characteristics … high-quality businesses, strong and capable management teams, attractive market positions and opportunities for sustainable long-term growth. We believe our value is less dependent on investing in a particular industry and more dependent on identifying strong businesses and high-quality sponsor partners where our experience, relationships and investment approach can add value. That sector flexibility, combined with a disciplined focus on the small and lower middle market, allows us to pursue opportunities across a diverse range of industries while maintaining a consistent investment philosophy. IVCA: What does Twin Bridge Capital Partners hope to achieve in their interaction with the VC/PE community within the IVCA? Twin Bridge: Twin Bridge looks forward to engaging with the IVCA community to share best practices, build relationships and exchange ideas and knowledge with other investors and market participants. We also see the IVCA as an opportunity to broaden Twin Bridge’s relationships and visibility across a wide range of participants in the Private Equity and Venture Capital ecosystem. Ultimately, we hope to be both an active participant and contributor to the community – learning from our peers while sharing our own perspectives and experiences to help strengthen Illinois’ broader Private Equity and Venture Capital ecosystem. For the website of Twin Bridge Capital Partners click here . The 2026 IVCA CFO Summit is now open for registration and is FREE to all IVCA members, and will take place on October 22nd, 2026. Click on CFO for more information and instructions to register.

ILLINOIS VENTURE CAPITAL ASSOCIATION ILLINOIS LEGISLATIVE REPORT David Stricklin / Stricklin & Associates Wednesday, September 16, 2026 IVCA WORKS TO REVERSE QSBS DECOUPLING IN REVENUE BILL At the end of every legislative session in Illinois a series of omnibus bills are produced to implement the budget and provide the revenue to close the gaps for spending policy makers want to have in the upcoming fiscal year. In the 2026 legislative session the “revenue omnibus” SB 3019 / PA 104 – 0468 included direction for Illinois to “decouple” from the federal tax code on treatment of Qualified Small Business Stock (QSBS). PLANTE MORAN ANALYSIS OF ILLINOIS QSBS TREATMENT The provision was sought by advocates who argue that Illinois should do more to tax wealth and provide more revenue to the state: ILLINOIS REVENUE ALLIANCE "PROGRESSIVE" TAX AGENDA It is difficult to reverse a decision such as the one made here. Getting to a final revenue package is balancing act which included over 20 different provisions including changes to sports wagering, taxes on advertising and digital assets. It included the decoupling from the federal code on QSBS 1202, while also extending the Angel Tax Credit through 2032. ILLINOIS TAXPAYERS’ FEDERATION OMNIBUS ANALYSIS While working to reverse the decisions made on QSBS, the IVCA is also alerting policy makers that the cumulative effect of misguided policy will harm the Illinois economy and make Illinois less attractive for investment. There is clearly momentum in some camps to tax wealth and change policies which have helped entrepreneurs create companies which provide employment and tax revenue where they are located. The IVCA will continue to encourage policy makers not to lose focus on the value of a thriving VC ecosystem which contributes significantly to the quality of life in Illinois.

From evolving tax regulations and valuation challenges to data management, investor reporting, and artificial intelligence, today's finance leaders sit at the center of private capital firm strategy. Join us on October 22, 2026, for the IVCA CFO Summit, a full day of practical insights, industry updates, and peer networking designed specifically for finance leaders in private equity and venture capital. Last year's program featured discussions on economic trends, Washington policy developments, fund formation, diligence, valuation transformation, operational scaling, and AI-driven finance transformation. Whether you're a CFO, controller, operations leader, or finance executive, the Summit offers valuable perspectives and meaningful connections with professionals across Illinois' private capital ecosystem. Learn more, register, or explore sponsorship opportunities at https://www.illinoisvc.org/cfo-summit

The IVCA Annual Awards Dinner returns to the Four Seasons Chicago on December 7, 2026, bringing together Illinois' leading private equity and venture capital professionals for an evening of recognition, networking, and celebration. As IVCA's flagship event, the Awards Dinner attracts more than 300 senior-level attendees, including investment professionals, portfolio company executives, institutional investors, and industry advisors. The evening recognizes outstanding firms, portfolio companies, and leaders who have made a significant impact on Illinois' investment ecosystem. Congratulations again to our 2025 award recipients: Venture Capital Portfolio Company of the Year: Simple Mills Private Equity Portfolio Company of the Year: Door and Window Guard Systems (DAWGS) Richard J. Daley Award: Bruce N. Barron, Origin Ventures Stanley C. Golder Award: Robert P. Morgan, 50 South Capital Rising Star Award: M25 IVCA Foundation Award: Shoshana M. Vernick Sponsorship opportunities are now available and provide exceptional visibility before, during, and after the event. View Sponsorship Opportunities HERE . For questions or to reserve a sponsorship level, please contact Christie Pruyn at cpruyn@illinoisvc.org .

Time flies in the deal-making process. Autumn is arriving in three weeks, but the fourth quarter for 2026 is here, and will be indicative based on what has happened in the previous three quarters of the year. The online financial press has predictions, observations and advocation regarding Venture Capital and Private Equity for the Fourth Quarter of 2026, as year counts down. JTCGroup.com , ‘Venture Capital Market 2026: Flexibility is Key in Uncertain Times’ Venture capital market 2026 predictions were all over the map after a tumultuous 2025, with geopolitical instability and economic volatility contributing to extended hold times and drawn-out venture capital fundraising periods. READ MORE: https://www.jtcgroup.com/insights/venture-capital-market-2026/ SouthSummit.io , ‘What Venture Capital Investors Look for in Startups in 2026’ Raising Venture Capital (VC) has never been easy, but in 2026 the bar is even higher. Investors are still actively backing startups, yet they are deploying capital more selectively and demanding stronger evidence that a company can become a category leader. READ MORE: https://www.southsummit.io/en/articles/1aaaf231-6487-f111-b337-000d3a3a1397/what-venture-capital-investors-look-for-in-startups-in-2026 Bain.com , ‘Control the Controllable, Weather the Rest: Private Equity Report 2026’ Call it the “Groundhog Day” dynamic. Recovery deferred … again. A year ago at this time, the Private Equity industry was poised for an upturn that never really took hold. Early-year optimism was dashed by tariff turmoil—just the latest in a long line of market dislocations dating back to the Covid-19 pandemic. READ MORE: https://www.bain.com/insights/private-equity-midyear-report-2026/ NYTimes.com , ‘Private Equity Is Stuck With 33,575 Unsold Businesses’ Even amid a booming deal-making environment, Private Equity firms are unable to exit a growing number of investments at values their investors require. READ MORE (gift link): https://www.nytimes.com/2026/08/10/business/private-equity-unsold-businesses.html?unlocked_article_code=1.4VA.beeV.b7xTvWdlzt6V&smid=url-share&trk=public_post_comment-text Bloomberg Podcasts , ‘Rerouting Trade, Private Equity Test | Wall Street Week’ This week, inflation may be edging lower, but as markets push rates higher, the Fed’s 2% inflation target might be a long way off. And, Mexico is building a land-based trade corridor that could give shipping companies more options when traditional channels are disrupted. Plus, as exits slow and borrowing costs rise, the ability of private equity investments to generate returns that beat public markets is less certain. LISTEN (48 MINUTES): https://youtu.be/jNvqXFss30M?si=1Ti9f7-icZwtxnb3 How I Invest Podcast , ‘How VCs Find the Next $1 Trillion Company’ Most investors assume that once a venture firm reaches $43 billion in assets under management, the real opportunities shift toward writing larger checks. Yuri Sagilov believes the opposite. LISTEN (28 MINUTES): https://youtu.be/QYCBdiUXTwY?si=_2R2LJmgo2Gj4Ggt Resident.com , ‘5 Luxury Travel Trends Reshaping 2026: Spontaneous, Private, and Closer to Home’ (IF YOU’RE FEELING SPONTANEOUS) “The luxury trip is changing shape. For most of the past decade, a high-end vacation meant a marquee hotel, a planned itinerary, and a flight to somewhere far from home. In 2026, the American travelers are rewriting all three assumptions at once. They are booking later, often within weeks of departure.” READ MORE: https://resident.com/luxury-travel/2026/06/25/5-luxury-travel-trends-reshaping-2026-spontaneous-private-and-closer-tohome The 2026 IVCA CFO Summit is now open for registration and is FREE to all finance professionals of IVCA member firms; $795 for all finance professionals of non-member firms, and will take place on October 22nd, 2026. Click on CFO for more information and instructions to register.