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Innovate Alabama is advancing its mission to build a thriving innovation economy by investing in two venture capital firms — gener8tor Alabama and Measured Capital — through its InvestAL program, part of the State Small Business Credit Initiative. The investments are designed to close the venture capital gap for early-stage startups and ensure returns stay within Alabama to strengthen the local innovation ecosystem.
According to Charlie Pond, executive director of SSBCI programs at Innovate Alabama, the latest announcement represents a critical step forward in the state’s broader economic strategy. He described the initiative as a “fund-of-funds strategy” that relies on investing in experienced, in-state venture firms already making an impact. Pond said the goal is to “bring capital off the sidelines and into the hands of founders who are building right here in the state.”
While SSBCI’s LendAL program focuses on helping small businesses secure loans through credit enhancements, InvestAL supports growth through equity-based investments—either directly into startups or via trusted venture firms. Unlike many investment programs, InvestAL is industry agnostic, giving it the flexibility to fund businesses across sectors.
Pond noted that Innovate Alabama has already made 17 direct investments under the program, with companies ranging from biotech and life sciences to Ag tech and professional services. “Our approach aligns with the state’s strategic economic plan,” he said, “but we’re also flexible enough to support a wide range of ventures.”
The initiative has strong roots in Alabama’s emerging innovation hubs, including Innovation Depot in Birmingham and Innovation Portal in Mobile, but its impact is spreading statewide.
As part of its fund-of-funds model, Innovate Alabama has partnered with gener8tor Alabama and Measured Capital, two firms with complementary investment philosophies and deep local engagement.
Gener8tor Alabama, a well-established accelerator and venture capital firm with a strong national presence, recently launched Alabama Fund I, aimed at investing in high-growth startups valued under $10 million. The firm has already helped 179 Alabama startups raise nearly $80 million in follow-on funding. Emily Wykle, regional vice president at gener8tor, said the support from Innovate Alabama “strengthens our ability to support the exceptional talent and innovation emerging from this state,” and added that gener8tor is focused on “keeping investments within the community to drive sustainable economic growth.”
Meanwhile, Measured Capital, founded in 2022, takes a hands-on, data-driven approach to early-stage investments across transformative sectors such as HealthTech, EdTech, AgingTech, and Climate and Sustainable Energy. Managing partner Douglas Watson said the firm is already transacting with startups at Innovation Depot and emphasized that Innovate Alabama’s support “allows us to double down on Alabama-based startups” by not only providing funding, but also the operational and strategic guidance those startups need to grow.
Pond described these investments as “catalytic,” noting that SSBCI’s one-to-one private capital match requirement significantly multiplies the program’s impact. “We’re already seeing results,” he said, pointing to job creation, office expansions and new product development underway even before any formal exits have taken place.
Since launching its investment portal in July 2023, Innovate Alabama has received more than 200 applications. Pond said the volume and quality of applicants far exceeded expectations, prompting the agency to reallocate capital from its lending program into InvestAL to meet demand. “We were blown away by the volume—and more importantly, the quality—of applications,” he said. “The message is clear: Alabama is becoming a place where startups can thrive.”
Pond’s passion for this work is rooted not just in strategy, but in lived experience. Before joining Innovate Alabama, he spent a decade in regional banking and earned a law degree. He also draws inspiration from his wife, a small business owner, whose entrepreneurial journey gave him a firsthand look at the highs and lows of building a company. “There are peaks and valleys,” he said. “That’s no different than any startup—and we get to help those founders persevere.”
He recalled a recent conversation with a lending partner who told him that a small business owner broke down in tears after learning they had qualified for a loan because of the program. “That kind of impact sticks with you,” Pond said. “That’s why we do this.”
As Innovate Alabama prepares to announce additional fund investments and receives its second tranche of SSBCI funding, Pond said momentum is building statewide—from Huntsville’s booming tech corridor to bioscience innovation in Fairhope. “We’ve got the ingredients in Alabama—low cost of living, strong communities, and emerging innovation hubs,” he said. “Now we’re adding fuel.”
From Pond’s perspective, the results are already visible. “In six months, we had over 200 applications,” he said. “The vast majority were truly investable companies. It’s happening right now, in front of our eyes.”
He emphasized that every investment made through the SSBCI programs translates into tangible outcomes for Alabama: more jobs, stronger local economies and new opportunities for wealth creation. “These programs are already paying dividends,” he said, “and we’re just getting started.”
Pond excitedly concluded, “It’s happening right now in front of our eyes,” he said. “Alabama is becoming a place where innovation doesn’t just exist—it thrives.”
