5 Top Venture Capital Firms in Alabama
Last Updated: By TRUiC Team
Alabama is an excellent state to start a business in. Its low-cost environment, low property taxes, and low progressive income tax of 2%-5% make it appealing to entrepreneurs. Of course, a great startup environment is only part of the equation for founding a business.
Starting a successful business in Alabama takes passion, perseverance, and capital. Even with the great startup ecosystem and support offered by the state, most entrepreneurs still need to find financial resources to get off the ground. Fortunately, Alabama has a number of respected venture capital firms looking for great investments.
We've gathered some of the best VC firms in Alabama for you to find the right one for your new startup. Our research includes valuable information like the types of industries these firms tend to work with, business stages they focus on, typical investment range, and notable portfolio companies they’ve invested in.
We also recommend checking out our full list of the top venture capital firms.
Best Alabama VC Firms
1. Alabama Launchpad
- Location: Birmingham, AL
- Industries: Technology, Software, Service, E-Companies
- Stage: Seed
- Investment Range: $50,000-$100,000
- Notable Portfolio Companies: MechOptix, INFLCR, Moovmo
Founded in 2006, Alabama Launchpad states that it’s the most active early-stage seed fund investor in the state. It’s invested in 108 startups as of right now, and its estimated valuation is $850 million.This VC firm is known for organizing regular events and competitions to help find the next promising startup. Some of its most notable portfolio additions, like MechOptix, were winners of the firm’s competitions.
The firm believes that healthy competitions make for a healthy economy, hence its focus on using competition to choose startups. But it does more than just invest initially, it also provides ongoing mentoring for Alabama entrepreneurs.
2. Redmont Capital
- Location: Birmingham, AL
- Industries: Healthcare, Financial Services, Information Technology, Industrial & Manufacturing, Business Services, Distribution
- Stage: Series A
- Investment Range: $1 Million-$4 Million
- Notable Portfolio Companies: FireRock, MacroFab, Altimmune
Redmont Capital focuses on providing private debt to companies predicted to experience high growth. The firm invests throughout Southwest Texas and the Central Southeast United States.
While Redmont is always looking to expand its portfolio with other successful stores similar to MacroFab, it also strives to deliver ongoing business assistance to the companies within its portfolio. Redmont has years of managerial and operational experience under its belt which it is happy to share with those under its umbrella.
3. EBSCO Capital
- Location: Birmingham, AL
- Industries: SaaS, Value-Add Distribution, Healthcare Technology, Information Products and Services
- Stage: Seed
- Investment Range: Undisclosed
- Notable Portfolio Companies: LUXOR, Biso, EBSCO Health
EBSCO Capital, like its parent company EBSCO Industries, is family-owned and privately held. It seeks to capture opportunities by observing long-term structural trends. Its activities include add-ons, buyouts, early-stage ventures, and venture capital as a limited partner.
EBSCO wants to work closely with the companies it invests in to foster success. Perhaps that’s due to its family legacy and position as one of the top privately-held companies, according to Forbes Magazine.
4. Medical Properties Trust
- Location: Birmingham, AL
- Industries: Healthcare
- Stage: Seed to Series C
- Investment Range: Undisclosed
- Notable Portfolio Companies: McLeod Health, Ardent, Dignity Health
Medical Properties Trust (MPT) is a major player in the healthcare investment arena. It funds new hospitals as well as those in development, including investing in some of the most prominent hospital operators around the globe. It currently invests in hospitals in nine countries.
MPT currently has more than $22 billion in asset value and is ranked as the second-largest owner of hospital beds in the United States.
5. Timberline
- Location: Birmingham, AL
- Industries: Biotechnology, Medical, Service, Industrial
- Stage: Series A
- Investment Range: Undisclosed
- Notable Portfolio Companies: Spray, Gas Field Services, Culver's
Timberline is a single-family office that makes a big impact in Alabama and beyond. Established in 2010, it uses capital and management know-how to invest in and support startups and established ventures.
This VC firm focuses on opportunities in the lower-middle market, taking a more nuanced approach to investing without a fixed mandate. It has a mission to help businesses grow and be sustainable over the long term.
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