Statewide partnership Innovate Alabama is making new investments in two prominent venture capital firms through its InvestAL program. The two firms, gener8tor Alabama and Measured Capital, are committed to fueling the growth of early-stage, high-potential companies across the state.

Charlie Pond, executive director of SSBCI programs for Innovate Alabama (Innovate Alabama)

Access to venture capital is a cornerstone of building a thriving environment for entrepreneurs. The investments in gener8tor Alabama and Measured Capital further the mission of Innovate Alabama to catalyze startup success by infusing capital into promising businesses and ensuring that returns are reinvested in the state’s innovation ecosystem, said Charlie Pond, Innovate Alabama’s executive director of SSBCI (State Small Business Credit Initiative) programs.

“We are thrilled to partner with these firms to expand investment in Alabama startups,” Pond said. “Through InvestAL’s catalytic investment, we expect them to not only fuel high-potential startups, but also reinvest in Alabama, creating new opportunities and strengthening our position as a hub for innovation.”

Funded through a U.S. Department of the Treasury award of up to $98 million to the State of Alabama, the InvestAL program is managed for the state by Innovate Alabama. Pond said one use of the program is as “funder funds” that allow more strategic deployment of the capital provided by the state. Such investments utilize the experience and expertise of established venture capitalists to identify opportunities for investment that will provide a return to the state and help enable the program to be self-sustaining.

gener8tor is a nationally recognized venture capital firm and accelerator with a strong Alabama presence. It recently launched the gener8tor Alabama Fund, a dedicated investment vehicle aimed at propelling high-growth startups across the state. Supported by a group of limited partners, including Innovate Alabama, the fund is designed to accelerate early-stage Alabama companies valued at less than $10 million.

To date, 179 Alabama startups have graduated from gener8tor programs, securing nearly $80 million in follow-on funding. Key gener8tor partners across Alabama include Bronze Valley, HudsonAlpha Institute for Biotechnology, Innovation PortAL, Prosper Birmingham and RCP Companies.

Emily Wykle, regional vice president of gener8tor, presenting to founders and stakeholders at the 2024 State of Innovation Day. (gener8tor Alabama).

“Our deep roots in Alabama provide us with unparalleled access to top-tier deal flow,” said Emily Wykle, regional vice president at gener8tor. “We are committed to keeping our investments within the community to drive sustainable economic growth, and this investment from Innovate Alabama strengthens our ability to invest in the exceptional talent and innovation emerging from this state through our new fund.”

Measured Capital, founded in 2022, is an early-stage venture capital firm that specializes in high-impact investments outside major tech hubs, with a focus on the Southeast. The firm prioritizes investment in transformative companies across key sectors, including HealthTech, media and entertainment, climate and sustainable energy, future of work, edtech, AgingTech, InsurTech and RetirementTech. Employing a data-driven, hands-on approach, Measured Capital goes beyond funding, offering strategic guidance and operational support to the founders in its portfolio.

Douglas Watson, founding managing partner of Measured Capital. (contributed)

“This investment from Innovate Alabama reinforces our mission to back bold founders solving complex challenges,” said Douglas Watson, founding managing partner of Measured Capital. “With it, we can expand our reach, invest in more Alabama-based startups and provide the support and guidance that drive long-term success. Innovate Alabama’s commitment to fostering innovation aligns perfectly with our vision, and together, we can create a more robust and competitive entrepreneurial landscape in the state.”

As Alabama’s first statewide public-private partnership focused on entrepreneurship, technology and innovation, Innovate Alabama implements programs and policies that support the state’s innovation ecosystem. It encourages and empowers entrepreneurs, business owners and students to build not only a business, but also a career and a life in Alabama.

In addition to opening access to capital, Innovate Alabama makes grants to support the work of nonprofits aligned with its goals and objectives. It also supports the development and retention of talent in the state, preparing students with the skill sets and capabilities needed for the businesses and industries of the future. Its SeekAL initiative markets Alabama’s vast array of outdoor recreational opportunities, including such efforts as the Outdoor Recreation Summit, scheduled for April 21-22 at Guntersville State Park.

“Innovate Alabama is here to shine a spotlight that not only attracts the outside capital to support Alabama’s future growth but also attracts new talent and retains Alabama natives with jobs and opportunities to be a part of that future,” Pond said. “It’s exciting work, and we’re just getting started.”