Birmingham, AL – Alabama has taken a significant step towards fostering innovation and entrepreneurship with the launch of its first state-backed venture studio. On June 19, 2025, Innovate Alabama, in collaboration with Harmony Venture Labs (HVL), announced the creation of the Innovate Alabama Venture Studio and Fund. This pioneering initiative aims to establish ten new venture-backed startups in the state by 2028, with the objective of attracting at least $10 million in venture capital.
The venture studio model stands apart from traditional startup accelerators by incubating ideas and businesses from the ground up. Unlike venture capitalists and accelerators that typically support founders with existing products or businesses, venture studios focus on creating new companies. The Innovate Alabama Venture Studio is dedicated to building high-growth startups within Alabama’s key industry sectors, such as AgTech, Fintech, medtech, and industrial systems.
This development is a natural progression of the work already underway by Innovate Alabama and HVL, spearheaded by entrepreneur Shegun Otulana. Innovate Alabama, a public-private partnership committed to entrepreneurship, technology, and innovation, has already made a significant economic impact, generating nearly $72 million and creating over 607 jobs statewide last year.
The new studio and fund aim to address real-world problems faced by underserved customers and markets across Alabama. “When I started launching startups in Alabama, the opportunity to build was always here — but capital and attention weren’t,” said Otulana in a statement. “This studio partnership is our answer to that gap: building real companies around real problems, with early customer validation and the backing to grow. As these ventures succeed, they attract capital, which draws more talent, and together, they fuel the next generation of startups. That’s how we create a lasting engine for innovation — one that raises Alabama’s tech profile and drives meaningful economic impact for its citizens.”
Alabama has a history of successful startups, including Fleetio, a fleet management company that has recently achieved unicorn status. The state is also home to notable successes like Shipt, acquired by Target in 2017 for $550 million, and Landing, a flexible-lease apartment platform. Another significant achievement is the electronic health record company Therapy Brand, developed by Otulana, which was purchased by KKR for $1.2 billion in 2021.
With the launch of the Innovate Alabama Venture Studio, Alabama is poised to further enhance its reputation as a hub for tech innovation and economic development, providing new opportunities for entrepreneurs and investors alike.
