ILLINOIS VENTURE CAPITAL ASSOCIATION ILLINOIS LEGISLATIVE REPORT David Stricklin / Stricklin & Associates Wednesday, October 14, 2026 Governor Sees A Path For Bears An issue which cuts across political and demographic lines and is on the minds of constituents is the fate of the Chicago Bears. Legislators often tell a version of the following as to what they hear from voters — “don’t give them a dime and for heaven’s sake don’t let them leave!” This week Governor Pritzker suggested a resolution was in sight: “I believe that in November we’re going be able to get something done to keep the Bears in the state of Illinois,” Pritzker said when asked about keeping the team during a debate with GOP challenger Darren Bailey tonight on WTTW . The governor, his staff and senior legislative leaders met recently with NFL Commissioner Roger Goodell and Pat Ryan Sr. , who owns a minority stake in the team. The Bears are trying to decide whether to build a new stadium in Arlington Heights or Hammond, Ind. Indiana lawmakers approved legislation in the spring.” https://t.co/ZL3ttYHW6p Crain's Chicago Business (@CrainsChicago) 7 likes · 3 replies x.com One And Only Debate Governor Pritzker and challenger Darren Bailey conducted a televised debate Tuesday. Polling and conventional wisdom gives the challenger a very steep hill to climb: In lone debate for Illinois governor, Bailey gets testy as Pritzker links challenger to Trump – Chicago Tribune Bailey repeatedly attacked and interrupted Democratic Gov. J.B. Pritzker, who countered by casting his challenger as a conservative extremist and a follower of President Donald Trump. Legislative Races Offer Contrasts Voters soon make their choices and there are a handful of competitive races between Republicans and Democrats in November. Polling and that same conventional wisdom says in the big picture Democrats will keep their large majorities in both legislative chambers. Some Lake County voters for example have a choice between two current Republican office holders and Democratic challengers, while in other areas Republicans are pressing Democrats on the Capitol Culture: — Illinois Dems are on the defensive over scandals in races for state legislature: Republicans are focusing on two House ethics controversies involving Democrats: In one instance, House Speaker Emanuel “Chris” Welch has been criticized for his handling of sexual harassment allegations against former state Rep. Harry Benton, who resigned. And in another, six-term Rep. Carol Ammons has been indicted on federal charges alleging she used taxpayer and campaign funds in a scheme to enrich herself. The Tribune’s Jeremy Gorner has more.

Artificial intelligence is rapidly transforming how investment firms source opportunities, conduct diligence, support portfolio companies, and manage operations. To help members navigate this evolving landscape, IVCA is launching the IVCA AI Education Series , a new educational initiative focused on practical, real-world applications of AI within private equity and venture capital. The series will feature monthly virtual educational sessions led by industry experts, technology providers, and practitioners actively deploying AI across the investment ecosystem. Topics will include: AI in investing and deal evaluation Due diligence and value creation Portfolio company operations AI-enhanced sourcing and market intelligence Software economics and investment implications Governance, risk, and compliance Industry-specific applications, including healthcare Confirmed participating organizations include Vokal , Andersen Consulting , and Thrive , with additional speakers and sessions to be announced throughout the year. Upcoming Sessions November 11, 2026 Intro to AI for PE & VC Investors Presented by Vokal January 13, 2027 AI in Due Diligence: What Actually Matters vs. What's Hype Presented by Andersen Consulting February 10, 2027 AI in Portfolio Support & Operations Presented by Thrive The IVCA AI Education Series will be held virtually on the second Wednesday of each month, providing members with a consistent opportunity to stay informed on emerging technologies and their impact on investment performance. Learn More & Register AI Education Series: www.illinoisvc.org/ai-education-series  November 11 Session Registration: Registration Link

The 2026 IVCA CFO Summit takes place next Thursday, October 22, bringing together finance and operations professionals from Illinois' private equity and venture capital community. Designed for CFOs, COOs, controllers, finance teams, and firm operations leaders, the Summit features expert-led discussions on economic trends, tax and regulatory developments, fund operations, valuations, fund formation, cybersecurity, artificial intelligence, and emerging technologies shaping the investment management industry. EY serves as the Presenting Sponsor of the 2026 IVCA CFO Summit. Northern Trust is the Hosting Sponsor, Kirkland & Ellis LLP is the Content Sponsor, and Alter Domus, NFP (an Aon company), and Valuation Research Corporation are Exhibiting Sponsors. Alter Domus also serves as a Content Sponsor. As a preview of this year's program, IVCA spoke with Stephanie Backman, CPA, Tax Partner at EY, about the trends, challenges, and opportunities finance leaders should be watching as they prepare for 2027. IVCA: The IVCA CFO Summit is coming up on October 22. What are the key themes attendees can expect this year, and who would benefit from attending beyond CFOs? EY: This year's Summit will focus on how organizations can navigate an unprecedented pace of change. Artificial intelligence continues to create significant opportunities for growth, productivity, and operational efficiency, but it also introduces new considerations around cybersecurity, governance, compliance, and risk management. The organizations that will lead in the coming years are those that successfully balance innovation with appropriate oversight. While CFOs remain a core audience, the discussions will be highly relevant for COOs, controllers, technology leaders, and other executives responsible for growth, operations, and risk management. IVCA: What tax, accounting, or regulatory developments should fund managers and finance teams be paying particularly close attention to heading into 2027? EY: The 2026 midterm elections are expected to play a significant role in shaping the policy and regulatory landscape heading into 2027 and beyond. Fund managers and finance leaders should closely monitor potential legislative, tax, and regulatory developments that may emerge following the elections. Summit attendees will hear perspectives directly from EY's Washington Council professionals, providing valuable insights into developments in Washington and the potential implications for the Private Equity and Venture Capital industry. IVCA: AI is rapidly transforming finance functions. Where are you seeing the most practical applications of AI within PE and VC firms today, and where do you think the biggest opportunities still exist? EY: Private Equity and Venture Capital firms are increasingly moving beyond AI experimentation and into scaled adoption. According to recent market observations, many asset management CFOs are accelerating AI investments after realizing measurable benefits from early initiatives, while others are building internal governance frameworks and specialized expertise to support long-term adoption. One of the most important strategic decisions organizations face is determining where to buy proven solutions versus where to develop proprietary capabilities. Looking ahead, the greatest opportunity lies in moving beyond individual productivity gains toward AI-enabled operating models, where intelligent agents and automation are embedded throughout key business processes and decision-making workflows. IVCA: Data, technology, and automation continue to reshape the finance function. What investments are firms making today that you believe will create the greatest long-term value? EY: The most successful digital transformation initiatives begin with a strong data strategy. High-quality, well-governed data is the foundation for automation, advanced analytics, and AI adoption. Many firms are recognizing that achieving long-term value often requires more than incremental improvements. Instead, it involves rethinking processes from the ground up and designing future-state operating models that fully leverage technology, automation, and data-driven insights. IVCA: Many CFOs are increasingly taking on broader strategic and operational responsibilities. How has the role evolved over the past five years, and what skills will be most important for the CFO of the future? EY: The CFO role has expanded significantly in both scope and influence over the past five years. Today's CFOs are expected not only to oversee financial performance but also to help shape strategy, manage enterprise risk, drive technology investments, and support organizational transformation. As the pace of change accelerates, successful CFOs will need a combination of financial expertise, technological fluency, and strategic leadership. In particular, understanding how to harness the power of AI while protecting intellectual property, managing risk, and maintaining strong governance will become a critical differentiator. IVCA: For someone considering attending the CFO Summit, what are the key takeaways and opportunities that they can anticipate? EY: What distinguishes the IVCA CFO Summit is the quality of engagement and collaboration among attendees. The CFO community has consistently fostered open and substantive dialogue, creating opportunities for participants to learn directly from peers who are facing similar challenges and opportunities. Attendees gain practical insights into emerging trends, leading practices, and evolving risks, while the interactive format also gives industry leaders and presenters valuable perspective on the issues most impacting organizations today. It is a unique forum for networking, knowledge sharing, and actionable discussion. Registration remains open for the 2026 IVCA CFO Summit, taking place October 22, 2026. Attendance is complimentary for IVCA members. Join your peers for a day of practical insights, candid discussion, and networking focused on the evolving role of finance leadership in private equity and venture capital. Click here for event details and registration information.

Building on another successful year, applications for the IVCA Scholars Program for Summer 2027 are now being accepted. The program places selected undergraduate students with leading private equity and venture capital firms for a 10-week immersive experience that combines hands-on industry exposure, professional development, technical training, and a $10,000 scholarship upon successful completion. In 2026, the program received a record 116 applications and placed 12 Scholars with host firms across Illinois' private capital ecosystem. Participating firms included Avathon Capital, BPOC, Exposition Ventures, Frontenac, Growth Catalyst Partners, OCA Ventures, Prairie Capital, Pritzker Private Capital, RoundTable Healthcare Partners, The Vistria Group, Victory Park Capital, and Water Street Healthcare Partners. Together, the IVCA Academy and IVCA Scholars Program provide students with multiple pathways to explore careers in private equity, venture capital, and the broader investment industry. Applications for the 2027 IVCA Scholars Program will open in October 2026. Students, university partners, and member firms are encouraged to visit the IVCA website for updates and application information.

We're excited to announce the launch of the IVCA Scholar & Alumni Directory , now available exclusively to IVCA members through the Member Portal. Over the past several years, the IVCA Scholars Program has grown into a robust talent pipeline connecting students to careers in private equity, venture capital, finance, consulting, and related fields. Today, the IVCA network includes more than 130 Scholars and alumni , providing members with access to a growing community of emerging investment professionals. A Valuable Recruiting Resource  Whether your firm is looking for summer interns, analysts, associates, portfolio company talent, or project-based support, the directory offers a convenient way to identify and connect with individuals who have participated in IVCA programming and expressed a strong interest in private equity and venture capital. Members can use the directory to: Identify candidates for internships and full-time roles Build a pipeline of future investment professionals Connect with alumni for networking and mentorship opportunities Engage talent for portfolio company positions Stay connected with participants as they progress throughout their careers Strengthening the IVCA Talent Ecosystem The directory is part of IVCA's broader effort to create a lasting alumni network that supports both students and member firms. By maintaining connections with Scholars beyond the program, IVCA is helping strengthen Illinois' investment ecosystem and create a more efficient pathway between talented students and industry opportunities. Many alumni have already gone on to careers in private equity, venture capital, investment banking, consulting, corporate finance, and entrepreneurship, making the directory an increasingly valuable resource for member firms. Access the Directory The IVCA Scholar & Alumni Directory is available exclusively to IVCA members. Simply log in to your IVCA Member Portal account to access the directory and explore our growing network of more than 130 Scholars and alumni. If your firm has internship, analyst, associate, or portfolio company opportunities available, we encourage you to make the directory one of your first recruiting stops.

We're excited to announce the launch of the IVCA Scholar & Alumni Directory , now available exclusively to IVCA members through the Member Portal. Over the past several years, the IVCA Scholars Program has grown into a robust talent pipeline connecting students to careers in private equity, venture capital, finance, consulting, and related fields. Today, the IVCA network includes more than 130 Scholars and alumni , providing members with access to a growing community of emerging investment professionals. A Valuable Recruiting Resource  Whether your firm is looking for summer interns, analysts, associates, portfolio company talent, or project-based support, the directory offers a convenient way to identify and connect with individuals who have participated in IVCA programming and expressed a strong interest in private equity and venture capital. Members can use the directory to: Identify candidates for internships and full-time roles Build a pipeline of future investment professionals Connect with alumni for networking and mentorship opportunities Engage talent for portfolio company positions Stay connected with participants as they progress throughout their careers Strengthening the IVCA Talent Ecosystem The directory is part of IVCA's broader effort to create a lasting alumni network that supports both students and member firms. By maintaining connections with Scholars beyond the program, IVCA is helping strengthen Illinois' investment ecosystem and create a more efficient pathway between talented students and industry opportunities. Many alumni have already gone on to careers in private equity, venture capital, investment banking, consulting, corporate finance, and entrepreneurship, making the directory an increasingly valuable resource for member firms. Access the Directory The IVCA Scholar & Alumni Directory is available exclusively to IVCA members. Simply log in to your IVCA Member Portal account to access the directory and explore our growing network of more than 130 Scholars and alumni. If your firm has internship, analyst, associate, or portfolio company opportunities available, we encourage you to make the directory one of your first recruiting stops.

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.