for its fleet-management software. (Fleetio)
Entrepreneurs and innovators are getting noticed for their work
in Birmingham, attracting millions of dollars in new investment for
their technology-based startups.
Innovation Depot. (Made in Alabama)
Recent months have brought at least three major funding
announcements involving local firms:
- On-demand grocery delivery service Shipt announced during the summer that
it had secured $20.1 million in Series A funding. - Fleetio raised $750,000
from private investors, the fleet management software firm said
earlier this month. - Swell Fundraising, a
software company that serves nonprofits, in August announced
$500,000 in angel investor funding.
Meanwhile, Daxko, a veteran of
Birmingham’s tech scene, recently announced that San
Francisco-based private equity firm GI Partners has acquired a
majority stake in the company that will further accelerate its
growth. Daxko provides software for health and wellness
organizations.
All the funding activity shows Birmingham has the right
ingredients to fuel a thriving
technology landscape and more growth is on the horizon, said
Kathleen Hamrick, director of the UAB iLab at the downtown
business incubator
Innovation Depot.
“The components people need to live, work, play and collaborate
are here, in Birmingham,” she said. “That said, it’s exciting, but
not all that surprising that we’re now seeing increased support for
startups — evidenced by activity such as that of the recent funding
rounds seen with Fleetio, Swell Fundraising, Shipt and Daxko.”
Gaining velocity
In addition, new programs designed to accelerate development of
idea stage companies will magnify support in the region, Hamrick
said.
One of those is Innovation Depot’s recently launched
Velocity Accelerator, which is supported by an economic
development venture philanthropy fund, made possible by local
community and corporate sponsors.
co-founder of Instagift, speaks at the program’s kickoff in August.
(Michael Tomberlin/Alabama NewsCenter)
“In January 2017, the first cohort of Velocity Accelerator
companies, up to 10 high-growth technology companies, will be
accepted into the program,” Hamrick said. “Through the Velocity
Accelerator, idea-stage companies in the South have the seed
support they need to develop and scale.
“Velocity Accelerator companies will receive $50,000 in seed
investment, over $800,000 in perks, heavy industry-specific
mentorship, and access to an incredible space to build their
companies alongside other top tech entrepreneurs over a 12-week
period.”
The $750,000 announcement from Fleetio is the firm’s first round
of outside funding, raised from local, private investors who have
been successful in their own right, said founder and CEO Tony
Summerville. They’re also people he has known for some time who
will serve as trusted advisers.
“We’ve grown the company this far without any outside
investors,…