Innovate Alabama Launches $15 Million Fund to Retain and Scale Early-Stage Alabama Companies

BIRMINGHAM, Ala. (April 15, 2026) — Today, Innovate Alabama announced the launch of the Capital Access Fund, a $15 million fund designed to retain and scale Alabama’s early-stage companies as well as unlock private investment dollars.  

By making investments that typically range from $100,000 to $250,000 per company, the fund will help founders bridge the critical gap from pre-seed to Series A funding. The fund incorporates a private match component, requiring at least a 1:1 ratio of private investment from corporations, individuals or venture firms. Returns generated by the fund will be reinvested to ensure long-term impact. 

Innovate Alabama recently welcomed Chris Udall as fund manager for the Capital Access Fund. Udall, based in Huntsville, brings specialized expertise to ensure transparency and sound structure for the fund, positioning it to deliver meaningful 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.” 

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. By aligning with CatALyst, the Capital Access Fund strengthens the state’s long-term competitiveness and supports industries that are 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,” said Senate President Pro Tempore Garlan Gudger, an Innovate Alabama board member.  

Through the Capital Access Fund, Innovate Alabama aims to invest in 15 to 20 companies over the next three years, creating a sustainable program that empowers founders while driving economic growth across the state. Of the $15 million fund, Innovate Alabama is allocating $10 million to direct investment in Alabama startups and $5 million to venture capital firms who 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,” said Rep. Danny Garrett, an Innovate Alabama board member. “This fund will help founders scale their ideas and development and become key contributors to Alabama’s growing economy.” 
 
This structure, modeled after Innovate Alabama’s InvestAL program, ensures that targeted capital is leveraged to encourage investment in Alabama companies from both regional and national venture firms. Together with InvestAL, made possible through the federal State Small Business Credit Initiative (SSBCI), the Capital Access Fund represents another step forward in building a resilient and innovative statewide economy through venture capital. 

For more information about Innovate Alabama and its programs, visit www.innovatealabama.org.   

About Innovate Alabama 

Innovate Alabama is Alabama’s first statewide public-private partnership focused on small businesses, technology and innovation with a mission to help innovators grow roots here in Alabama. Innovate Alabama was established to implement the initiatives and recommendations set forth in the Alabama Innovation Commission’s report, including smart policy solutions that will create a more resilient and robust economy to remain competitive in a 21st-century world. With founding CEO Cynthia Crutchfield leading the charge, Innovate Alabama is also made up of a board of 11 innovation leaders appointed by Gov. Ivey, collaborating across sectors to advance industries, drive technology and facilitate an environment where innovation and small businesses thrive. Learn more about Innovate Alabama at www.innovatealabama.org.