With more than 400 startup events conducted in Birmingham, AL, in the last 12 months, it's no wonder the city is quickly becoming a hotspot for startups.

Similarly, many venture capital firms and angel investors have also stepped into the startup ecosystem of Birmingham, providing the startups with the required guidance and much-needed funding.

So, let's not wait any longer and jump onto the list of top angel investors in Birmingham and how you can pitch to them.

Top Angel Investors in Birmingham

It is important to note that different angel investors and Venture capital firms have their own investment interests. Before pitching to any of the mentioned investors, double-check all the information from their official sites to avoid any errors later.

Here's the list of some of the top-ranking angel investors and venture capital firms in Birmingham.

Harbert Management Corporation

Website: Harbert Management Corporation 

Investor Type: Investment Network

Investment Interests: Technology, Software, E-commerce

Investment Stage: Series B

Harbert Management Corp is a multinational privately owned investment management company founded in 1993 by Raymond Harbert. The network itself doesn't fund startups. However, they formed a division called Harbert Growth Partners, which is actively funding startups in many cities in Alabama.

They focus on technology ecosystems outside of Silicon Valley and the Northeast, areas with a vibrant entrepreneurial community, leading research universities, and significant startup and early-stage investment activity.

Similarly, HGP also organizes many mentorship programs and networking events to guide their portfolio companies through problems faced at different startup stages. The investment range of HGP is $ 5 million - $ 20 million, depending on the startup's growth potential. Some of their recent investments are:

Apkudo: Apkudo is a global leader in supply chain automation for connected devices. It provides solutions related to the lifecycle of connected devices, from certifying new devices for launch to optimizing the liquidation of refurbished products. The company has raised $65.9M in funding.

Clarabridge: Clarabridge is an American software company. It offers customer experience using AI-powered text and speech analytics. The company was acquired by Qualtrics in 2021.

Graylog: Graylog is a log management and security analytics software company. Graylog provides a centralized log management solution for capturing, storing, and enabling real-time analysis of terabytes of machine data. It raised an $18 million growth equity round led by Harbert Growth Partners.

Alabama Launchpad

Website: Alabama Launchpad 

Investor Type: Venture Capital Firm

Investment Interests: Technology, Software, Service, E-commerce

Investment Stage: Seed Stage

Alabama Launchpad is a venture capital firm that was launched by the Economic Development Partnership of Alabama in 2006 and provides Grant Funding. Since its inception, the firm has funded around 120 startups, many of which have exited successfully.

The investment board consists of 10 experienced angel investors focusing on funding startups with high chances of growth and unique ideas. While funding startups, Alabama Launchpad invests in startups by organizing pitching contests. During the screening tests, the investors ask entrepreneurs several questions about the startup market, their estimated ROI, and how the startup can make it big by securing funding.

As for their mentorship programs, Alabama Launchpad offers entrepreneurs access to one-on-one mentorship with experts in various business functions, known as Launch Advisors. These advisors assist the finalists in business operations, planning, and pitch preparation for the final competition and beyond.

The investment range of Alabama Launchpad ranges from $50,000 to $100,000 as they invest in seed-stage companies. Notable companies in their portfolio are:

2U Tire of Alabama: 2U Tire of Alabama is a mobile service that brings tires and other auto needs to clients and installs them. The company operates out of a Sprinter van, allowing their certified technicians to provide mounting and precision balancing.

House Plant Collective: House Plant Collective is an indoor plant retailer that seeks to grow through agreements with additional prospective shop owners. The company won the early-seed stage prize of $50,000 in the Alabama Launchpad Cycle 1 2022 Finale.

INFLCR: INFLCR is a platform that equips innovative college athletic programs with critical social media tools to empower their student-athletes to be brand ambassadors on social media.

Redmont Capital LLC

Website: Redmont Financial Services (redmontcapital.com)

Investor Type: VC Firm

Investment Interests: Healthcare, Financial Services, Information Technology, Business Services, Distribution, Industrial & Manufacturing

Investment Stage: Series A

Redmont Capital is also a venture capital firm that was founded in the late 1990s by Philip L Hodges. The network consists of experienced investors who fund startups based on their ideas and growth potential. And since many investors are working with the firm, their investment interests aren't limited to a single sector.

Currently, Redmont Capital has funded 37 startups, most of which are related to tech and healthcare. They also provide private debt and equity capital solutions to small and lower middle market companies in the Southeastern United States. Once done with the funding, Redmont Capital also provides startups with access to their experienced network of mentors.

The investment range of Redmont Capital LLC ranges from $ 1 million to $ 4 million. A famous company which secured an investment from Redmont Capital was:

Altimmune: Altimmune is a clinical-stage biopharmaceutical company that focuses on the development of novel peptide-based therapeutics for the treatment of obesity and liver diseases. 

New Capital Partners

Website: New Capital Partners

Investor Type: Investment Network

Investment Interests: Healthcare Technology & Services, Business Technology & Services, Financial Technology & Services

Investment Stage: Series B

New Capital Partners is a venture capital firm that funds and guides Birmingham-based startups. After funding more than 20 companies, the investors at New Capital Partners are ready to search for more deserving startups and boost their growth by funding them.

Aside from investments, New Capital Partners also focuses on the guidance of its portfolio companies. They believe startups, especially those at their early stages, should be provided with the required guidance to generate high profits.

The investment range of New Capital Partners isn't mentioned on their website. However, most of their previous startup funding is around $500,000. Some of their recent investments include:

ControlCase: ControlCase is a provider of IT GRC and compliance as a service solution. It provides IT GRC, managed compliance software, and certification for service providers, financial institutions, and government agencies.

Teladoc Health: As one of the first investors in Teladoc, New Capital Partners helped the company develop a network of more than 3,000 licensed healthcare professionals and a membership of more than 20 million members.

REPAY: A payment technology company that helps businesses pay and get paid.

During its partnership with New Capital Partners, REPAY increased its profitability by more than 325% in three years.

Bill Smith

LinkedIn: Bill Smith | LinkedIn

Investor Type: Individual Angel Investor

Investment Interests: Tech, Healthcare, Construction, Software, Fintech, and Consumer Products.

Bill Smith is the most active individual angel investor who funds and guides startups in Birmingham. After investing in nearly 10 companies, Bill Smith is ready to announce more funding campaigns for 2024 and fund deserving startups that can make it big in the future.

As for Bill's investment interests, he usually invests in a wide range of sectors. Bill Smith believes that a startup can easily succeed provided proper guidance and mentorship, which is the key reason why he organizes many mentorship programs and public workshops to guide his audience.

Similarly, aside from funding, Bill Smith is also an experienced entrepreneur and loves to launch new ideas. He recently invested $3 million of his own capital into Shipt, a company he founded, which started with a $100,000 check, gradually investing more over time. After selling Shipt to Target for $550 million, he used some of that cash to fund his new idea, Landing.

The investment range of Bill Smith ranges from $50,000 to $100,000. Notable investments in his portfolio are:

CostCertified: CostCertified is a residential construction estimating software that provides an "all-in-one" platform enabling consumers to buy construction services. Bill Smith invested in CostCertified's Seed Round on Oct 6, 2021, when CostCertified raised $8.5M.

Linq: Linq is an administrative software service provider for K-12 schools. They bring efficiency and insight to K12 central office teams and leaders with software solutions. Bill Smith invested in Linq's Seed Round on May 27, 2021.

RETINA-AI Health: RETINA-AI Health is a privately held company focused on building artificial intelligence. Bill Smith led the Series A funding round for RETINA-AI Health on Jul 15, 2020, when they raised $5.2M.

Wrap Up

So, there you have the list of top angel investors in Birmingham; before we wrap up, allow me to share some final words of wisdom.

Entrepreneurs are often confused and afraid before pitching to investors. This is mostly because of arising doubts about whether investors will believe in their startup or even listen to their presentation in the first place.

However, regardless of the situation, always do proper homework, conduct in-depth research, prepare a great pitch deck and remain confident throughout the screening tests. This is because investors will never invest or believe in a startup idea that you aren't able to present properly.

Frequently Asked Questions