Imagine launching your startup in a city where the cost of living is low, the talent pool is deep, and the community is genuinely invested in your success. Welcome to Birmingham, Alabama—a city that’s quietly but confidently becoming one of the Southeast’s most exciting destinations for founders and venture capital.
Once known for its steel and smokestacks, Birmingham is now forging a new identity as a magnet for innovation. The city’s startup scene is buzzing with energy, fueled by a new generation of ambitious founders, supportive investors, and a network of accelerators and incubators that rival those in much larger markets. Whether you’re building in healthtech, fintech, SaaS, or beyond, Birmingham offers the resources, connections, and grit to help you scale.
This guide is a resource for founders seeking venture capital in Birmingham. We’ll highlight the top VC firms currently funding startups in the city, actionable insights on fundraising in Birmingham, current ecosystem trends, key networking opportunities, and local resources to help you build and scale your company.
Top VCs and Incubators in Birmingham
New Capital Partners
About: New Capital Partners is an Alabama-based private equity firm that manages private equity and economic development funds.
Sweetspot check size: $ 15M
Thesis: We are a group of former operators that now partner with founders and management teams of growth stage businesses to help accelerate the growth through our experience building great companies, industry relationships, access to capital, and investment expertise.
Alabama Futures Fund
About: Our Fund seeks to be the first significant investment in an early-stage venture that can reach attainable milestones leading to series A financing within 12-24 months. Our sweet spot is companies that have adaptable and coachable founding teams who have identified a significant customer problem and are working towards product market fit. This includes companies at the minimum viable product, pre-revenue and early revenue stages. Because of the risks involved in investing this early, our preference is to stage capital relative to milestones achieved. Therefore, we reserve significant capital for follow-on investments in our most promising companies.
AIM Group
About: Collective Capital Ventures is a unique self-directed venture capital model that enables you to build an automatically diversified portfolio while gaining access to 30+ vetted investment opportunities in high-growth technology companies. We provide the venture capital experience with flexibility for the individual investor.
Alabama Launchpad
About: Alabama Launchpad helps high growth companies start, stay and grow in Alabama while supporting, advocating, and recognizing entrepreneurship statewide. Alabama Launchpad is a program of the Economic Development Partnership of Alabama.
Innovation Depot
About: Our vision is for Innovation Depot to be recognized as one of the best incubators in the country, where entrepreneurs pursue their startup dreams, build dynamic teams, and contribute to the growth of Birmingham. We aim to be the go-to destination for every tech enthusiast in the city, fostering a vibrant community of founders, startup employees, investors, and supporters. We want our building to feel like home, a place where countless hours are spent turning ideas into reality, and where everyone feels welcomed and valued. This is the place to be for innovation, collaboration, and success.
Why Birmingham Is a Growing Startup Hub: Key Advantages for Founders
Affordable Cost of Living and Quality of Life
One of Birmingham’s standout features is its affordability. The cost of living is significantly lower than in major tech hubs like San Francisco, New York, or even Atlanta, allowing founders to stretch their runway further and attract top talent without the high salary demands of larger cities. This affordability extends to office space, housing, and everyday expenses, making it easier for startups to operate lean and invest more in growth.
Access to Skilled Talent
Birmingham is home to several respected universities and research institutions, including the University of Alabama at Birmingham (UAB), and Samford University. These institutions produce a steady pipeline of skilled graduates in fields like engineering, computer science, healthcare, and business. UAB, in particular, is a nationally recognized leader in medical research and innovation, fueling the city’s strength in healthtech and biotech startups.
Supportive Startup Infrastructure
The city’s startup infrastructure has grown significantly in recent years. Organizations like Innovation Depot—one of the largest tech incubators in the Southeast—provide founders with affordable workspace, mentorship, and access to a vibrant community of entrepreneurs. Other resources, such as the Birmingham Business Alliance and Techstars Alabama Power EnergyTech Accelerator, offer programs, funding, and networking opportunities tailored to early-stage companies.
Notable Startup Success Stories
Birmingham’s ecosystem is gaining national attention thanks to high-profile exits and funding rounds. Companies like Shipt (acquired by Target for$550 million), Ensora Health, and Fleetio have demonstrated that Birmingham startups can scale and succeed on a national stage.
Networking Opportunities and Startup Events in Birmingham
Networking is the lifeblood of Birmingham’s startup ecosystem. For founders, building relationships with investors, mentors, and fellow entrepreneurs can open doors to funding, partnerships, and invaluable advice. Birmingham offers a range of high-impact events and organizations that make it easy for founders to plug into the local community and accelerate their growth.
Major Recurring Events and Conferences
- Sloss Tech is the city’s premier technology conference, attracting national speakers and hundreds of attendees each year. It’s a must-attend for founders looking to connect with the broader tech community and stay on top of industry trends.
- Innovation Depot Event Calendar from demo days to workshops and networking sessions you can find multiple events to connect and learn.
- Birmingham Venture Club Events provide a platform for founders to meet investors and learn from successful entrepreneurs through luncheons, panels, and pitch events.
Pitch Competitions and Accelerator Demo Days
Participating in pitch competitions and accelerator demo days is a proven way to gain exposure and feedback.
- Velocity Accelerator Demo Day is a highlight for early-stage startups, offering a chance to present to a room full of investors and community leaders.
- Alabama Launchpad is a statewide competition that awards non-dilutive funding to promising startups and provides valuable pitch experience.
Key Organizations and Community Hubs
- Innovation Depot serves as the central hub for Birmingham’s startup activity, offering coworking space, mentorship, and a packed events calendar.
- Birmingham Venture Club is a go-to for founders seeking to build relationships with local investors and business leaders.
Local Resources and Support for Birmingham Startup Founders
Building a successful startup takes more than just a great idea—it requires access to the right resources, support systems, and community connections. Birmingham, Alabama, offers a wealth of local resources designed to help founders at every stage of their entrepreneurial journey. Leveraging these assets can accelerate growth, reduce risk, and connect you with the expertise and capital you need to thrive.
Incubators, Accelerators, and Coworking Spaces
- Innovation Depot is the region’s flagship tech incubator, offering affordable office space, mentorship, and access to a vibrant community of entrepreneurs. Its programs include the Velocity Accelerator, which provides seed funding, intensive mentorship, and a structured curriculum for early-stage startups.
- Forge is a modern coworking space in downtown Birmingham that caters to startups, freelancers, and remote teams. Forge hosts regular networking events and workshops, making it a great place to build connections and find collaborators (Forge).
Local Government and Economic Development Initiatives
- Birmingham Business Alliance (BBA) supports startups through advocacy, business development programs, and connections to local investors and partners.
- Alabama Launchpad is a statewide startup competition that awards non-dilutive funding and provides valuable exposure to investors and mentors.
- City of Birmingham Office of Innovation and Economic Opportunity offers resources and programs to help startups navigate permitting, incentives, and local business regulations.
Connect With Investors in Birmingham Using Visible
At Visible, we often times compare a fundraise to a B2B sales and marketing funnel. At the top of your funnel, you are finding new investors. In the middle, you are nurturing and pitching potential investors. At the bottom of the funnel, you are working through diligence and ideally closing new investors.
With the introduction of data rooms, you can now manage every aspect of your fundraising funnel with Visible.
- Find investors at the top of your funnel with our free investor database, Visible Connect and find a filtered list of Birmingham's investors here.
- Track your conversations and move them through your funnel with our Fundraising CRM
- Share your pitch deck and monthly updates with potential investors
- Organize and share your most vital fundraising documents with data rooms
Manage your fundraise from start to finish with Visible. Give it a free try for 14 days here.
