Alabama has a new venture studio…and this one is the first to be backed by the state.
The Innovate Alabama Venture Studio and Fund, launched by a partnership with Innovate Alabama and Harmony Venture Labs (HVL), is looking to create 10 new, venture-backed startups in the state by 2028.
With those 10 new companies, the goal is to draw in at least $10M in venture capital.
The venture studio model differentiates itself from the more traditional startup accelerators out there in one key way. While VCs and accelerators work with founders who already have a product or a full business, venture studios incubate an idea and a company from the ground up.
The Innovate Alabama Venture Studio will focus on building high-growth startups aligned with Alabama’s top industry sectors, including AgTech (agriculture tech), Fintech (financial technologies), medtech, and industrial systems.
The fund studio is a natural extension of the work going on in the state by both Innovate Alabama and HVL, run by entrepreneur Shegun Otulana. Innovate Alabama, a public-private partnership focused on entrepreneurship, technology and innovation, generated close to $72 million in economic impact and created 607+ jobs last year across the state.
The studio and fund is designed to create new ventures that solve real-world problems for underserved customers and markets across the state.
“When I started launching startups in Alabama, the opportunity to build was always here — but capital and attention weren’t,” said Otulana in a statement. “This studio partnership is our answer to that gap: building real companies around real problems, with early customer validation and the backing to grow. As these ventures succeed, they attract capital, which draws more talent, and together, they fuel the next generation of startups. That’s how we create a lasting engine for innovation — one that raises Alabama’s tech profile and drives meaningful economic impact for its citizens.”
Alabama Success Stories Over The Years
Alabama has churned out several startup success stories over the years.
One such company is Fleetio, a newly-minted unicorn, which has been growing its fleet management startup from Birmingham since 2012.
The state is also home to Shipt (acquired by Target in 2017 for $550 million and Landing, a rental platform that provides flexible-lease apartments. Another local success story is electronic health record (EHR) Therapy Brand, built by Otulana, which was acquired in 2021 by KKR in a $1.2 billion deal, according to Bloomberg.
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Featured photo shows: Shegun Otulana and Britney Summerville (Alabama Capital Access Initiative chair and Innovate Alabama board member), serving on a panel at the 2024 Fast Company Innovation Festival
