About this programme
The Capital Access Fund is a $15 million evergreen investment initiative run by Innovate Alabama to expand access to early-stage capital for high-growth companies across the state. "Evergreen" means the fund reinvests returns from prior investments back into future companies, so it operates as a long-term, sustainable source of capital rather than a one-time pool.
The fund invests alongside private capital partners in two ways: direct investments into individual startups, and fund-of-funds investments into venture capital funds that are actively sourcing Alabama-connected companies. The goal is to expand access to capital for Alabama-based companies, attract more private investment into the state, support high-growth, innovation-driven businesses, and drive long-term economic growth and job creation.
Innovate Alabama also runs InvestAL, a separate program. Both expand access to capital for Alabama companies but work differently and target different growth stages; the Capital Access Fund is not subject to certain federal SSBCI requirements, which Innovate Alabama says allows for a simpler and more flexible investment process.
How it works
Direct investments range from $100,000 to $250,000, structured as equity, SAFEs, or convertible notes, for companies from pre-seed through early Series A with a meaningful connection to Alabama. The money is meant to support product development, customer acquisition, commercialization, or preparation for a subsequent financing round.
A minimum 1:1 private capital match is required: for every $1 Innovate Alabama invests, the company must secure at least $1 in private capital as part of the same financing round, from angels, venture funds, or other qualified private investors. The fund does not lead investment rounds; a qualified lead investor must set the round's terms.
Separately, fund-of-funds investments of $500,000 to $2.5 million go to venture capital funds that show a commitment to investing in Alabama-based or Alabama-connected startups. Fund managers receiving this capital must actively source Alabama companies, provide regular reporting, and bring in co-investment.
Who can apply
For direct investment, companies must be headquartered in Alabama or demonstrate a meaningful and growing presence in the state, operate as a high-growth, innovation-driven business, and have the ability to scale and attract private investment.
The fund targets pre-seed, seed-stage, and select Series A companies that show strong potential for scale.
Private investment is required as part of the same round: at least a 1:1 match against Innovate Alabama's investment.
For fund-of-funds investments, venture capital funds must show a genuine commitment to sourcing Alabama-based or Alabama-connected startups.
How to apply
- Complete the application through the Innovate Alabama website (the "Apply to Pitch for Direct Investment" form), providing information on the company, team, financials, and current fundraising activity.
- As part of the application, provide: your pitch deck; your term sheet or investment agreement for the round you are currently raising; your most recent capitalization table; and information on your committed or prospective co-investors.
- The Innovate Alabama team reviews your materials against the fund's investment criteria. If there is interest, the team reaches out for more information and may invite you to present a formal pitch.
- After the pitch, the investment team conducts further diligence, including follow-up questions, a review of financials, and evaluation of your co-investment partners and deal structure, working in coordination with your fundraising timeline.
- If the fund decides to invest, you're notified and given next steps, which may include executing investment agreements and standard reporting requirements. If the decision is not to invest, you're notified as well.
- Founders who are not yet ready to apply can complete the Founder Interest Form to receive updates instead. Venture fund managers are invited to submit materials through a separate review process.
Documents you’ll typically need
- Pitch deck
- Term sheet or investment agreement for the round currently being raised
- Most recent capitalization table
- Information on committed or prospective co-investors
Frequently asked
Is private investment really required, or can I get funded on my own?
Private investment is required. The fund invests alongside qualified private investors and requires a minimum 1:1 match, meaning for every $1 Innovate Alabama invests, you must secure at least $1 in private capital as part of the same financing round.
Does Innovate Alabama lead the funding round?
No. A qualified lead investor must establish the terms of the round; the Capital Access Fund invests alongside that lead.
How long does it take to get a decision?
The timeline varies based on deal readiness and alignment with co-investors, but Innovate Alabama aims to provide a decision on investment within 90 days of application.
What stage companies does the fund invest in?
It targets pre-seed, seed-stage, and select Series A companies that demonstrate strong potential for scale.
How is this different from InvestAL?
Both programs expand access to capital for Alabama companies but work differently and target companies at different stages. The Capital Access Fund is not subject to certain federal SSBCI requirements, which allows for a simpler and more flexible investment process.
More funding in Alabama
Blazer App Accelerator
University of Alabama at Birmingham (UAB) · Alabama
UAB program that validates software and app ideas from UAB creators before they seek further funding.
Blazer Bridge Fund
University of Alabama at Birmingham (UAB) · Alabama
UAB fund that develops promising faculty and staff discoveries with commercial potential toward startup formation.
Boost (Innovation Depot)
Innovation Depot · Alabama
Rolling mentorship and growth-planning program for Birmingham, Alabama founders with an MVP or early traction, no funding attached.
LendAL
Innovate Alabama (State Small Business Credit Initiative) · Alabama
State-backed credit enhancement that lowers lender risk so more Alabama small businesses qualify for loans, applied for through partner lenders.
Alabama Launchpad
Economic Development Partnership of Alabama (EDPA), in partnership with Innovate Alabama · Alabama
Alabama's longest-running pitch competition, awarding up to $100,000 plus $2,500 to every finalist in three industry tracks.
Innovate Alabama Supplemental Grant Program
Innovate Alabama · Alabama
Matching grant up to $250,000 for Alabama companies with active federal SBIR or STTR awards, opened in periodic rounds.
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.