Top 5 Angel Investors in Birmingham, Alabama

Birmingham, Alabama is home to a growing base of startup investors, from individual angels to growth-equity and private equity firms. AngelMatch currently lists 100+ investors active in Birmingham, and below are five of the most active names to know before you pitch.

Venture capital firms, private equity investors, and individual angels have all stepped into Birmingham's startup ecosystem, providing founders with both guidance and much-needed funding.

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

Top Startup Investors in Birmingham

It is important to note that different angel investors, venture capital firms, and private equity 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 startup investors in Birmingham.

Harbert Management Corporation

• Website: Harbert Management Corporation 
• Investor Type: Alternative Asset Manager (growth equity investing via Harbert Growth Partners)
• Investment Interests: Technology, Software, E-commerce
• Investment Stage: Emerging Growth Stage

Harbert Management Corp is a privately owned investment management company founded in 1993 by Raymond J. Harbert, headquartered in Birmingham. The network itself doesn't fund startups directly. However, its growth-equity arm, Harbert Growth Partners, actively funds emerging technology companies across several Southeastern cities, including 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. HGP typically invests $5 million to $8 million initially, per its own investment strategy. 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 $75M in total funding, including a Series B round led by Harbert Growth Partners.

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 a $1.125 billion stock transaction that closed in October 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: Startup Competition / Non-Dilutive Seed Funding Program
• Investment Interests: Technology, Software, Service, E-commerce
• Investment Stage: Concept and Seed Stage

Alabama Launchpad is a startup competition launched by the Economic Development Partnership of Alabama (EDPA) in 2006 that awards non-dilutive funding, meaning founders keep their equity. Since its inception, the program has awarded more than $6 million to over 120 Alabama startups, which have gone on to create more than 1,600 jobs.

While funding startups, Alabama Launchpad runs pitching competitions guided by a committee of experienced investors and mentors. During the screening process, judges 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.

Individual competition prizes have typically ranged from $50,000 to $100,000 depending on the track and cycle. Notable companies that have won funding 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 based in Birmingham's Avondale neighborhood. The company won the $50,000 seed-stage prize at the Alabama Launchpad Cycle 1 2022 Finale.

INFLCR: INFLCR is a platform that equips college athletic programs with social media tools to help their student-athletes act as brand ambassadors. INFLCR won the top seed-track prize of $100,000 at an Alabama Launchpad finale.

Redmont Capital LLC

• Website: Redmont Financial Services
• Investor Type: Private Equity Firm
• Investment Interests: Healthcare, Financial Services, Information Technology, Business Services, Distribution, Industrial & Manufacturing
• Investment Stage: Small and Lower Middle Market

Redmont Capital is a private equity firm founded in the late 1990s, with Philip L. Hodges as co-founder and Managing Partner. The firm consists of experienced investors who fund companies based on their growth potential, and its investment interests aren't limited to a single sector.

Redmont Capital provides private debt and equity capital solutions to small and lower middle market companies in the Southeastern United States, drawing on a portfolio built since the firm's founding, much of it in tech and healthcare. Once done with the funding, Redmont Capital also provides companies with access to its network of mentors.

A well-known company that Redmont Capital co-founded and backed is:

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: Private Equity Firm
• Investment Interests: Healthcare Technology & Services, Business Technology & Services, Financial Technology & Services
• Investment Stage: Growth Equity / Buyout

New Capital Partners is a private equity firm, founded in 2001 and based in Birmingham, that funds and guides growth-stage companies. The firm has invested in more than 90 companies to date, and its investors are always looking for more deserving companies to back.

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

Some of their notable 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, per New Capital Partners' own reporting.

Bill Smith

• LinkedIn: Bill Smith
• Investor Type: Individual Angel Investor
• Investment Interests: Tech, Healthcare, Construction, Software, Fintech, and Consumer Products.

Bill Smith is an active individual angel investor who funds and guides startups in Birmingham. Best known as the founder of Shipt, Bill Smith has backed several companies and continues to look for deserving startups to fund.

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 invested $3 million of his own capital into Shipt, which started with a $100,000 check, gradually investing more over time. After selling Shipt to Target for $550 million in 2017, he used some of that capital to fund his new idea, Landing.

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 is one of CostCertified's angel investors, who backed the company's $8.5M seed round.

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 is an investor in Linq.

RETINA-AI Health: RETINA-AI Health is a privately held company focused on building artificial intelligence for diabetic retinopathy screening. It raised $5.2M in Series A financing in 2020.

Wrap Up

So, there you have the list of top startup 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.

Since Birmingham's investor scene mixes individual angels, growth-equity firms, and private equity backers, it also helps to know the full list of investors active across Alabama, and to check the private equity firms or the angel investors on AngelMatch to narrow your list before you start outreach.

Frequently Asked Questions

How many investors does AngelMatch list for Birmingham?

AngelMatch currently lists 100+ investors active in the Birmingham area, spanning individual angels, venture capital firms, and private equity groups. You can browse the full, filterable list on the Birmingham investor page.

Does Alabama Launchpad take equity in the startups it funds?

No. Alabama Launchpad awards non-dilutive prize money through its startup competitions, so founders keep their equity. It has awarded more than $6 million to over 120 Alabama startups since its founding in 2006.

What industries do Birmingham's top investors focus on?

Birmingham investors on this list lean toward healthcare, technology, software, and financial services, with individual angels like Bill Smith also backing construction and consumer products. Check each investor's stated interests before pitching, since focus areas vary firm to firm.

Is it possible to find an angel investor for free?

Yes. It isn't common to find totally free investor-matching events, but with the right approach, it is possible to find investors for free.

Participating in networking events within your industry or local entrepreneurial community, like those Alabama Launchpad and local investors host in Birmingham, can help you connect with potential investors without direct financial outlays.