Innovate Alabama: Transforming Startup Funding Nationwide

Moderator Abigail Bassett (from left) discussed how entrepreneurs can bridge the regional funding gap with Mary Beth Grant and Shegun Otulana at the recent Sloss.Tech conference in Birmingham, Alabama.

Venture capital has long fueled the world of startups. However, for founders outside traditional tech hubs like San Francisco, New York, or Los Angeles, securing funding often feels out of reach—no matter how groundbreaking the idea may be.

At this year’s Sloss, the tech conference in Birmingham, Fast Company and Innovate Alabama—the state’s first public-private partnership dedicated to growing its innovation economy—brought together experts to discuss how to close the regional funding gap. The panel explored how smart state policies and public-private partnerships can create thriving entrepreneurial ecosystems in overlooked markets.

Here are the top three takeaways on how smaller regions can attract investment and scale startups successfully.

Top Earning Sources Right Now

---

1. Build Startup Success from the Ground Up

Growing a company from an idea into a thriving enterprise requires more than just capital. It takes the right mix of infrastructure, funding, talent, and collaboration.

“We think a lot about supporting founders across the entire innovation continuum—from ideation to incubation, acceleration, commercialization, and stabilization,” explained Mary Beth Grant, Program Director of the Innovate Alabama Capital Access Initiative.

To strengthen this ecosystem, Innovate Alabama launched the Venture Studio and Fund in June 2025 in partnership with Birmingham-based Harmony Venture Labs. The studio helps high-growth, venture-backed startups get off the ground by offering mentorship, funding, and collaborative opportunities.

The initiative builds on Alabama’s growing suite of resources—tax incentives, matching grants, business incubators, and corporate partnerships—designed to help founders commercialize ideas and stabilize their businesses. Companies like Accelerate Wind (rooftop wind turbines) and Shipshape AgWorks (AI-powered modular vertical farming) are already proving the model works.

---

2. Create a Steady Flow of Investment Opportunities

One reason venture capital gravitates to places like Silicon Valley is deal density—a steady flow of well-managed startups for investors to consider.
“In Alabama, you have to create your own gravity,” said Shegun Otulana, founder and CEO of Harmony Venture Labs.
His team is doing just that by leveraging Alabama’s strengths in industries like logistics, medical technology, finance, agriculture, and industrial systems. By identifying inefficiencies in these core sectors and matching them with innovative founders, Harmony Venture Labs is building a pipeline of fundable startups that attract investor attention.
This proactive approach is turning Alabama into an emerging hotspot for venture capital deal flow.

---

3. Balance Public Purpose with Business Needs

Unlike private VC firms that move quickly to close deals, public-private partnerships must balance the public good with business realities.

“The most important thing is making sure everyone is in alignment,” Otulana said.

That alignment comes through clear communication and community engagement. Innovate Alabama makes transparency a priority—keeping the public informed, securing community buy-in, and ensuring new programs positively impact the entire state.

Although the Venture Studio only launched in March 2025, it’s already receiving positive feedback from founders, corporate partners, and the community—signaling a promising future for Alabama’s innovation economy.

---

The Bottom Line

Innovate Alabama is proving that startup success doesn’t have to be limited to Silicon Valley. With strategic public-private partnerships, strong industry ties, and a focus on building an entrepreneurial pipeline, Alabama is reshaping how venture capital flows into smaller markets—and creating a blueprint for other regions to follow.