Innovate Alabama on Wednesday announced the launch of the Capital Access Fund, a $15 million initiative designed to help retain and grow Alabama’s early-stage companies while unlocking private investment.
The fund will make investments typically ranging from $100,000 to $250,000 per company to help founders bridge the gap from pre-seed to Series A funding. It requires at least a 1-to-1 private match from corporations, individuals or venture firms. The fund also will reinvest returns to support its long-term impact.
Innovate Alabama recently named Chris Udall fund manager for the Capital Access Fund. Udall, who is based in Huntsville, brings expertise intended to support transparency and sound structure for the fund and help position it to deliver results for Alabama’s innovation ecosystem.
“Alabama has always produced world-class builders. Now, it’s our moment to make sure the rest of the world knows it. I’ve had the privilege of working with founders whose technology reaches the International Space Station, alongside innovators across the state, from rural communities to urban centers, who prove that ambition isn’t limited by geography. My charge is simple: bring top-tier investors to Alabama, back top-tier companies born or headquartered here, and make it undeniably clear that some of the most important innovation in the country is happening right here in Alabama,” Udall said.
The initiative will prioritize investments in Alabama’s core industries identified in the Department of Commerce’s CatALyst plan, including forestry, construction technology and legacy sectors, while expanding access to capital for companies in rural areas. Innovate Alabama said the fund’s alignment with CatALyst will strengthen the state’s long-term competitiveness and support industries foundational to Alabama’s economy.
“This fund represents a strategic investment in Alabama’s future. By unlocking private capital, we’re not only supporting local businesses but also strengthening the industries that drive our economy. This fund will help create jobs, expand opportunities in rural communities and ensure Alabama remains competitive for years to come,” Senate President Pro Tempore Garlan Gudger, R-Cullman, an Innovate Alabama board member, said.
Through the Capital Access Fund, Innovate Alabama plans to invest in 15 to 20 companies over the next three years, creating a sustainable program intended to empower founders and drive economic growth across the state. Of the $15 million fund, Innovate Alabama is allocating $10 million for direct investment in Alabama startups and $5 million to venture capital firms that commit to investing in Alabama startups.
“The Capital Access Fund is an important step in ensuring innovative companies can start, grow and stay in Alabama,” Representative Danny Garrett, R-Trussville, an Innovate Alabama board member, said. “This fund will help founders scale their ideas and development and become key contributors to Alabama’s growing economy.”
Innovate Alabama modeled the structure after its InvestAL program to use targeted capital to encourage investment in Alabama companies from both regional and national venture firms. Together with InvestAL, which was made possible through the federal State Small Business Credit Initiative, or SSBCI, Innovate Alabama said the Capital Access Fund marks another step toward building a resilient, innovative statewide economy through venture capital.
