Innovate Alabama 2024 Annual Report

Innovate Alabama 2024 Annual Report

A Letter from the CEO and the Chair of the Board of Directors In 2024, Innovate Alabama continued to make strides in strengthening our state’s innovation economy, amplifying our mission to help innovators grow roots. This executive report highlights the impact we’ve made over the past year, showcasing the progress we’re driving across Alabama.

In our second full year of operations, Innovate Alabama remained focused on delivering transformative impact by infusing our state with the resources, talent and recreation opportunities essential for a strong innovation economy. Despite shifting economic conditions, our commitment to this mission has not wavered. We are proud of our 2024 accomplishments, which position Alabama as a leader in both the national and world economy.

Our work and impact this year spanned the entire state. We invested $41.8 million across 30 counties and provided an additional $19.1 million in tax incentives — fueling entrepreneurship, infrastructure improvements, outdoor recreation projects and educational initiatives. These strategic investments are creating jobs, strengthening communities and accelerating Alabama’s economic growth.

Innovate Alabama’s investments have generated an initially estimated 607 jobs with rapid growth projections and $71.8 million in economic activity statewide. These new positions are projected to contribute approximately $30.4 million in wages for Alabamians, particularly in high-value, high-growth innovation sectors like professional services and research.

With an impressive estimated average salary of $72,000 — and some research and development roles reaching as high as $139,000 — our efforts are laying the foundation for a more prosperous and competitive Alabama.

In 2024, we also advanced the vision set forth by the Alabama Innovation Commission and Innovate Alabama’s Council on Outdoor Recreation. This year marked the launch of SEEK Alabama, the state’s first outdoor recreation marketing campaign targeting audiences beyond our borders. Additionally, we facilitated our first SSBCI transactions, enhanced outdoor recreation assets to attract and retain talent and expanded entrepreneurship opportunities for an additional 2,000 students since 2023.

Throughout this report, you will find detailed insights into our initiatives, achievements and path forward. We continue to be committed to transparency and accountability, and the data presented here reflect our dedication to measurable, meaningful progress.

Looking ahead, we remain steadfast in our mission: to ignite a culture of innovation that reaches every corner of Alabama and beyond. Our vision is clear — to build an economy where every Alabamian has the opportunity to innovate, succeed and contribute to a state recognized as a hub of technology and entrepreneurship.

We extend our sincerest gratitude to everyone who has been part of this remarkable journey. Your support, insights and collaboration are helping shape Alabama’s future, one fueled by innovation and a shared commitment to excellence.

We hope this report serves as both a reflection of our progress and an inspiration for what’s to come. Thank you for being part of this chapter of Innovate Alabama’s story.

Sincerely,

Cynthia Crutchfield CEO

Cover photo credits: Peritus

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Bill Poole Chair of the Board of Directors

2024 Innovate Alabama Leadership

Gov. Kay Ivey

Governor, State of Alabama

Rich Bielen

Bill Poole Chair

Sen. Greg Reed Vice Chair

Director, Alabama Department of Finance

President Pro Tempore, Alabama Senate

Dr. Michael Chambers

Rep. Anthony Daniels

President and CEO, Protective Life Corporation

Associate Vice President for Research, University of South Alabama

Rep. Danny Garrett

Abe Harper

House Minority Leader, Alabama House of Representatives

David King

Ways & Means Education Committee Chair, Alabama House of Representatives

President, Harper Technologies

Former Group President and CEO of Dynetics and Former Director of the Marshall Space Flight Center

Sen. Bobby Singleton

Britney Summerville

Cynthia Crutchfield CEO

Senate Minority Leader, Alabama Senate

Founder, Birmingham Bound

On the Horizon for 2025 Introducing Senator Garlan Gudger to the Innovate Alabama Board of Directors Senator Garlan Gudger, recently elected as President Pro Tempore of the Alabama Senate, has been appointed to the Innovate Alabama Board of Directors. His appointment underscores the state’s commitment to fostering a robust environment for startups and high-growth companies.

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Overview

Innovate Alabama is on a mission to help innovators grow roots in Alabama by supporting entrepreneurs and innovators.

This report reflects the activity of Innovate Alabama in 2024 and its impact on the innovation ecosystem in Alabama. In 2024, Innovate Alabama expanded its geographic impact by facilitating programs in more than 30 Alabama counties with a goal of further expanding our reach to rural counties over the next 3 years through the Innovating Alabama Tax Credit, Network Designation Program, Outdoor Recreation Grant, Supplemental Grant Program and the State Small Business Credit Initiative. In total, Innovate Alabama infused over $60.9M into the state’s ecosystem with $41.8M of strategic investments and $19.1M in tax incentives. Programs funded by Innovate Alabama have engaged with more than 3,000 students across the state in 2024 with over 30 higher education institutions having received support.

In 2024, the Innovate Alabama team expanded its internal capacity, introducing Program Director of HBCU Engagement, Shannon Allen; Program Director of Access to Capital, Mary Beth Grant; Executive Director of Outdoor Recreation Programs, T.C. McLemore; Program Director of Tax Credits, Kelly McNair; Executive Director of SSBCI, Charlie Pond; and Executive Assistant, Roslynn Stone. In 2025, the team will expand to include External Affairs Director, Hope Brasell; and Program Director of Network Designation, Karri Green. From an organizational standpoint, Innovate Alabama also underwent a strategic planning process in which the organization and key stakeholders identified guiding strategies and top priorities. This process, set to conclude in early 2025, will incorporate ongoing statewide initiatives, such as the CatALyst Report and the Alabama Growth Alliance, among others. The organization will continue looking to the future to introduce innovative initiatives in opportunity sectors like forestry, while placing emphasis on both regional collaboration and rural engagement.

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More than

30

Alabama counties

$41.8M

in strategic investments

$19.1M in tax incentives

Engaged over

3,000 students across the state

Supported programs at more than

30 higher education institutions

Photo credit: Innovate Alabama

As the Alabama’s first public-private partnership dedicated to advancing entrepreneurship, technology and innovation, Innovate Alabama is committed to shaping our great state for the economy of the future.

In 2024, we made a significant impact – driving economic growth, expanding grant funding, and supporting more programs than ever before. With

5 | INNOVATE ALABAMA ANNUAL REPORT 2024

a vision to help innovators grow roots in the state, Innovate Alabama is focused on three core pillars relating to resources, people and places. Through targeted investment and cross-sector collaboration, we will continue strengthening Alabama’s workforce and fostering a resilient innovation economy, building on Alabama’s innovative legacy.

2024 Innovate Alabama Ecosystem Investments Innovate Alabama has significantly strengthened the state’s innovative economy through our strategic array of investment mechanisms. The table below outlines the key industries that Innovate Alabama has made direct investments in, including professional services for entrepreneurs, research and development, infrastructure development, education, government, recreation, commercial real estate activities, manufacturing, software development, health and food and beverage. Each of these economic sectors plays a

critical role in driving growth, sustaining progress and laying the foundation for a thriving innovation economy.

By targeting resources to these critical sectors, Innovate Alabama is catalyzing significant advancements in technological innovation, economic development and community engagement.

Approximately one-third of Innovate Alabama’s investments were directed towards organizations specializing in Professional Services and Networks. Investing in professional services organizations that support

Innovate Alabama’s Investments in 2024 Professional Services and Networks | 27%

27%

Infrastructure Development | 17%

17%

10% 7%

20%

Research and Development | 20%

6%

Health | 1%

5%

Food and Beverage | 2%

3%

Local and County Government | 2%

TOTAL INVESTMENT $60.9M 6 | INNOVATE ALABAMA ANNUAL REPORT 2024

Recreation | 10%

Software Development and Computer Programming Services | 7%

Educational Services | 6% Manufacturing | 5% Commercial Property Leasing | 3%

entrepreneurs aligns with our mission to transform Alabama’s economy by leveraging expertise and fostering an environment conducive to growth. These organizations offer specialized knowledge and skills that help companies innovate, streamline operations and scale more efficiently.

Funding recipients in the Professional Services and Networks category include organizations that are developing startup studios and collaborative spaces to turn innovative ideas into market-ready products — such as the Auburn Lowder Center for Family and Entrepreneurship — accelerating the local entrepreneurial ecosystem. Additionally, Innovate Alabama invested in several organizations that administer accelerator programs for early-stage technology companies with scalable innovative products, such as the CRP Defense-Tech Accelerator created by the Huntsville Madison County Chamber of Commerce Foundation.

Photo credit: Innovate Alabama 7 | INNOVATE ALABAMA ANNUAL REPORT 2024

About one-fourth of Innovate Alabama’s funding was allocated to organizations advancing research and development in scientific fields. These investments fuel cutting-edge innovation and positions Alabama as a hub for scientific breakthroughs. Funding recipients in this category include foundations and organizations improving medicines and vaccines, such as AeroNeph Therapeutics, Inc., as well as nonprofits spearheading research studies focused on supporting curricula neurodivergent children, such as the Arc of Madison County.

Beyond professional services and R&D, Innovate Alabama made significant investments in education and government-led programs designed to equip students with the skills and resources to pursue careers related to innovation, support local governments in launching initiatives that catalyze entrepreneurship, small business incubation, commercialization and related services.

Innovate Alabama’s Geographic Investments Pre-2023

2024

Award Category Not inclusive of 2024 Outdoor Recreation Grants or Talent Pilot Grants Network Grant Funding Supplemental Grant (SBIR/STTR) Innovating Alabama Tax Credit State Small Business Credit Initiative (SSBCI)

Innovate Alabama’s Investments by Program

$14.3M $4.4M

$9.3M Key

$1.4M

Innovating Alabama Tax Credit Outdoor Recreation

$12.4M $19.1M

Talent Pilot Grants Supplemental Grant Program SSBCI Network Designation

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Innovate Alabama’s Economic Impact 2024 Innovate Alabama has been instrumental in creating new jobs, increasing household earnings and driving business revenue across the state. Through strategic investments in Alabama’s innovation ecosystem, the organization has generated approximately $71.8M in economic activity and supported the creation of more than 600 jobs.

Sales Revenue generated by Innovate Alabama’s investments within specific industries.

Earnings

Jobs

Income earned by employees within specific industries stemming from the impact of Innovate Alabama’s investments.

Employment positions created by Innovate Alabama’s investments within specific industries.

REVENUE GENERATION BY SECTOR (Data in $Million) Prog. & Advis. Svcs.

2.9 1.0

R&D

3.0 1.0

8.6 $12.5M 5.0 $9.0M

Infr. Dev.

1.7 0.5

3.6 $5.8M

Rec.

1.5 0.7

3.0 $5.2M

Ed. Svcs.

0.7 0.3 1.8 $2.8M

Softw. Dev & Comp. Prg. Svcs.

0.8 0.3 1.0 $2.1M

Comm. Prop. Leasing Loc. & Co. Govt.

0.2 1.7 $2.5M

0.6

0.1 <0.1 0.8 $0.9M

Mfg.

<0.1 <0.1 0.3 $0.4M

Health

<0.1 <0.1 0.2 $0.2M

Estimated Revenue Generation

Innovate Alabama has driven substantial economic activity, generating an estimated $41.4 million in revenue across the state through both direct and indirect economic activity.

NAICS and Lightcast consider direct sales as the revenue generated by businesses directly benefiting from Innovate Alabama’s investment, indirect sales as the increased business activity in the supply chain, resulting from purchases made by companies directly involved in the initial investment, and induced sales are the additional economic activity generated from increased household spending by employees whose income derives from both direct and indirect economic activities.

WAGES EARNED BY SECTOR (Data in $Million) Prog. & Advis. Svcs.

2.5 0.4

R&D Infr. Dev. Rec.

3.2 $6.1M 1.8 $5.1M

2.9 0.4 1.3 0.2 0.6 0.2

1.2 $2.7M

1.0 $1.8M

Ed. Svcs.

0.3 0.1 0.7 $1.1M

Softw. Dev & Comp. Prg. Svcs.

3.2

Comm. Prop. Leasing

0.3 0.1 0.4 $0.8M

Loc. & Co. Govt.

<0.1 <0.1 0.4 $0.5M

0.1 0.6 $3.9M

Mfg. Health

Estimated Wages Earned

Innovate Alabama has contributed to an estimated $30.4 million in wage earnings across the state, supporting job growth and economic prosperity.

NAICS and Lightcast define direct earnings as the income earned by employees working directly in businesses or projects that receive the Innovate Alabama’s investment, indirect earnings as the wages and salaries paid to workers in industries that provide goods or services to the businesses directly affected by the investment, and induced earnings as the income generated in the wider economy due to increased household spending by employees benefiting from both direct and indirect economic activities.

6.4

1.8 <0.1 <0.1 $1.9M

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<0.1 0.1 $6.5M Direct

Indirect

Induced

JOB CREATION BY SECTOR Prog. & Advis. Svcs.

43 8

R&D

54

Infr. Dev.

25 66

20 36 2 14 21

1

Softw. Dev & Comp. Prg. Svcs.

Comm. Prop. Leasing 9 Loc. & Co. Govt.

37 99

8

38 3

Rec. 11 5 Ed. Svcs. 5

66 117

59

11 71

2 7 18 1 0 7 8

Innovate Alabama’s strategic investments in 2024 created an initially estimated 607 jobs across various industries that have high growth potential as companies scale. These investments not only generated direct employment, but also fueled indirect employment opportunities in related sectors. They also induced jobs that arise from increased household income by employees of the industries affected both directly and indirectly.

NAICS and Lightcast define direct jobs as positions created directly by Innovate Alabama’s investment within the specific industry receiving the funding, indirect jobs as employment generated in industries that supply goods or services to the sector directly impacted by the investment, and induced jobs as positions created as a result of increased household spending by employees of both the directly and indirectly affected industries.

139

Mfg. Health

Estimated Job Creation

0 2 141

28 0 2 30

AVERAGE SALARIES BY SECTOR Prog. & Advis. Svcs.

$58,000

R&D

$139,000 $71,000

Infr. Dev. Rec.

$32,000

Softw. Dev & Comp. Prg. Svcs.

Ed. Svcs.

$110,000 $47,000 $63,000

Comm. Prop. Leasing

$73,000

Loc. & Co. Govt.

$81,000

Mfg. Health

$43,000

Estimated Average Salaries

On average, jobs created through Innovate Alabama initiatives offer worker salaries that are significantly higher than the state’s median household earnings ($62,000).

Innovate Alabama’s investments have significantly elevated earning potential across the state. While the average salary for a college graduate is about $53,000, jobs created through Innovate Alabama’s initiatives – particularly in sectors 10 | INNOVATE ALABAMA ANNUAL REPORT 2024

such as R&D and Software Development – offer salaries as high as $139,000. By supporting growth and access to job opportunities in these industries, Innovate Alabama is positioning the state to attract and retain talent, increase disposable income and foster economic stability and growth.

These opportunities serve to enhance the quality of life for all of Alabama’s residents while supporting the development of a more prosperous and dynamic economic landscape.

Innovate Alabama Pillars To fortify Alabama’s innovation and entrepreneurial ecosystem, Innovate Alabama focuses on three core pillars: Access to Resources, Talent Development and Lifestyle and Recreation. These pillars are often informally referred to as resources, people and places.

Talent Development Fostering a robust, skilled workforce capable of sustaining an innovation economy through partnerships with educational institutions, nonprofits and research entities that will attract, retain and develop a multigenerational, highly skilled workforce within the state of Alabama.

Access to Resources Providing and connecting resources and other tools to the entrepreneurs who need them by expanding access to both startup capital and data to encourage commercialization and long-term success for businesses with high-growth potential.

Lifestyle and Recreation Building an ecosystem where innovators thrive personally and professionally by investing in our natural and cultural assets to develop and better connect innovators with their community through the abundant outdoor recreation assets in driving distance.

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Innovate Alabama Programs In 2024, Innovate Alabama continued advancing its mission through the rollout of funding opportunities and pilot programming. The organization’s resources include the Innovate Alabama Network, the Innovating Alabama Tax Credit, the Outdoor Recreation Grants, the State Small Business Credit Initiative (SSBCI) and the Supplemental Grant (SBIR/STTR). Innovate Alabama also supported four programs in 2024 under the Talent Development pillar: • Alabama Data Scholars program facilitated by QuantHub

• Emerging Innovation Scholars [BIG Ideas] program supported by the University of Alabama Honors College • FuelAL coordinated by the Economic Development Partnership of Alabama • HBCU Innovation Experience run by the Alabama Collective.

Each of the programs supported by Innovate Alabama aligns with at least one of the three pillars, with many initiatives spanning multiple pillars due to their interconnected objectives. By focusing on these areas, Innovate Alabama strives to foster entrepreneurship, create jobs, build a talented workforce and spur innovation.

Pillar and Program Overlap PEOPLE

RESOURCES

LIFESTYLE

Innovate Alabama Network Alabama Data Scholars

Outdoor Recreation

Emerging Innovation Scholars

SBIR/STTR

FuelAL

SSBCI

HBCU Innovation Experience 12 | INNOVATE ALABAMA ANNUAL REPORT 2024

Tax Credits

Key Pillars Talent Program Award Program

Review of 2024 Innovate Alabama Programs Innovate Alabama Network

Innovating Alabama Tax Credit

The Innovate Alabama Network consists of two programs designed to advance the organization’s mission and three pillars. The Network Designation Program enhances innovation-related programming within the state, providing seed funding for innovative projects and fostering innovation ecosystem partnerships. In 2024, the Network Designation Program infused more than $8.0M into 26 urban and rural Alabama counties, facilitating two rounds of funding. The recipients included 112 communities, entities, educational institutions and outdoor recreation organizations, all of which are actively driving innovation and strengthening the innovation ecosystem. The second component of the Innovate Alabama Network is the ecosystem asset map. This tool is designed to address knowledge gaps within the state’s innovation ecosystem by providing a comprehensive guide to existing resources. Set for release in early 2025, the ecosystem asset map will support Innovate Alabama’s mission to create strong and well-connected local innovation networks by providing innovation actors with this comprehensive tool. Both elements of the Innovate Alabama Network will spur opportunities for collaboration and maximize the impact of organization funding.

The Innovating Alabama Tax Credit Program provides an incentive to EDOs, equipping them with the tools, resources and opportunities that help founders grow their companies. Previously run by the Alabama Department of Commerce, Innovate Alabama now oversees this initiative, which aims to stimulate local economic growth through EDOs. The goal of this program is to strengthen the tools, resources and opportunities that these larger entrepreneurial support organizations can provide to founders as they scale their companies. In 2024, Innovate Alabama approved $19.1M in tax credits to 12 EDOs to provide services like assistance with establishing brick-and-mortar spaces, broader community development and technical assistance, among many others. As the EDOs implement their programs to accelerate the growth of small businesses, Innovate Alabama will be able to track a more direct local impact on earlystage startups within the state’s innovation ecosystem.

Photo credit: Innovate Alabama 13 | INNOVATE ALABAMA ANNUAL REPORT 2024

Outdoor Recreation

State Small Business Credit Initiative

In 2024, Innovate Alabama made strides in expanding its existing programs, while also introducing a new investment program focused on the Lifestyle and Recreation pillar. At the direction of the Council on Outdoor Recreation and Advisory Council, SEEK Alabama is a marketing campaign designed to highlight the state’s natural resources and outdoor recreational offerings. The SEEK Alabama website connects innovators with local and state parks, outdoor recreation activities and other natural assets promoting Alabama’s unique geographic offerings. To better position Alabama’s recreational assets as innovative economic development tools, Innovate Alabama has created the Outdoor Recreation Grant. Innovate Alabama invested $12.4M from a one-time state investment into projects in more than 25 counties in Alabama, guiding local stakeholders to enhance Alabama’s outdoor economy and workforce retention efforts. Much of this funding supported outdoor recreation infrastructure projects in rural communities and communities outside of urban centers. Innovate Alabama will continue to leverage the natural resources within the state to attract and retain workers in the innovation ecosystem.

Launched in 2024, the State Small Business Credit Initiative (SSBCI) is supported by federal funding and provides small businesses with tools to encourage growth at various stages of business development. LendAL is a debt financing tool that provides small businesses and entrepreneurs access to credit with favorable terms to foster growth and innovation and to spur job creation within the state. Through LendAL, Innovate Alabama facilitated $7.6M in loans to small businesses across the state. InvestAL is a venture capital growth fund and fund of funds aimed at investing in high-growth startups, investors and early-stage capital funds to infuse capital directly into the economy.

In 2024, Innovate Alabama launched InvestAL, which invested $6.7M in 18 high-growth venture backable startups with headquarters in Alabama. These startups secured an additional $10M in follow-on funding from external investors. Through InvestAL, Innovate Alabama invested in catalytic projects like Johnson Energy Storage (JES), joining investors such as Magic Johnson, Myles Garrett and Southern Company Electrotechnologies to support the project’s growth. JES plans to pioneer a more affordable alternative to lithium batteries, which will mobilize JES operations in Tuskegee, AL.

Supplemental Grant (SBIR/STTR) Innovate Alabama has continued to facilitate the Supplemental Grant Program, which provides a state fund match to recipients of active Phase I or Phase II Federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) Grants. In 2024, Innovate Alabama allocated approximately $4.4M in Supplemental Grant funding to nearly 25 small businesses. Recipients use the funds to grow their business by hiring talent, engaging in business plan development, product testing, market research, intellectual property protection and technical work. By investing in this matching program, the impact of small businesses and universities that have proven business models and technologies is amplified throughout the state.

Photo credit: Peritus 14 | INNOVATE ALABAMA ANNUAL REPORT 2024

Review of 2024 Talent Programs Alabama Data Scholars In partnership with Innovate Alabama, software development company QuantHub has launched the Alabama Data Scholars internship program. This pilot program places high school juniors and seniors from across the state into an eight-week, paid summer internship designed to strengthen their data literacy skills and gain exposure to careers in the data science field. This program aims to address knowledge gaps at the K-12 level across the state. In 2024, 46% of internship applicants came from rural communities in Alabama. Students graduated from the program with competitive skills equipping them for both higher education classes and internships in fields employers often report a shortage in qualified candidates. Innovate Alabama is advancing our mission of investing in talent across generations through programs like the Alabama Data Scholars.

Photo credit: Innovate Alabama 15 | INNOVATE ALABAMA ANNUAL REPORT 2024

Emerging Innovation Scholars [BIG Ideas]: After a successful pilot in 2022, Innovate Alabama partnered with The University of Alabama Honors College and The Kennemer Center for Innovation and Social Impact to expand the Emerging Innovation Scholars program in 2023 and 2024. This program is designed to provide undergraduate students with the opportunity to develop ideas, transform their thinking and tackle societal problems with creative approaches in a competitive setting. Emerging Innovation Scholars engaged with 79 students across 31 academic majors in 2024, increasing its total program student engagement from 76 in 2024 to 155 in 2024. Four student teams received awards ranging from $2,500$3,000, in addition to mentorship and workshops covering topics like budgets and timelines, intellectual property and corporate structure to strengthen the entrepreneurial skills of all students. This program will be expanded to Stillman College, Talladega College, the University of North Alabama and the University of South Alabama in the 2024-2025 academic year.

FuelAL

HBCU Innovation Experience

After a successful pilot program in 2023, FuelAL, supported by the Economic Development Partnership of Alabama (EDPA), expanded its reach in 2024 by impacting nearly 600 additional students, bringing the total to around 1,000 students.

FuelAL offered three types of programming in 2024, the first of which was a series of career fairs. More than 250 students engaged with FuelAL’s four career fair pop-ups at universities. These fairs showcased partnered employers, rural Alabama, FuelAL Host Communities and internship opportunities across the state. FuelAL also offered two weekend summits in Central Alabama and the Gulf Coast, respectively.

During the Central Alabama Summit, 37 interns networked with business executives, attended Sloss Tech 2024, watched a Barons baseball game at Regions Field and explored other regional assets.

During the Gulf Coast Summit, 35 interns networked with executives at OWA Parks and Resort, participated in LED Glow Kayaking in Gulf Shores and toured additional facilities. Of the 67 respondents from 2023 and 2024 summits, 31 students said they planned to remain in Alabama, and 30 students said they would consider staying in Alabama after graduation, suggesting positive impacts on student talent retention.

The HBCU Innovation Experience launched in 2023 with a mission to strengthen Alabama’s thriving ecosystem of emerging technology, innovation and entrepreneurial excellence from Historically Black Colleges and Universities (HBCU’s). In 2024, the initiative provided opportunities in tech, innovation and entrepreneurship to over 2,100 individuals. The organization inspired curiosity and expanded awareness to an additional 1,000 students from 2023. Programs supported through the HBCU Innovation Experience included the Magic City Classic Business Pitch, Innovation Power Hours, App Build & Pitch Competition, Innovate Alabama Hackathon, Tech Pathways, App Development Workshops and Summer Internship Program, Build Your Own Idea Workshop and Entrepreneurship Training Programs, Blacks in Tech and Tech Training Bootcamps.

Finally, the Summer Host Community Programming in 2024 successfully matched over 400 students with 10 FuelAL host communities across the state of Alabama. This program introduced a mentorship component, connecting interns with community leaders and offering opportunities for professional development, social events and service opportunities.

In 2025, FuelAL will be launching a school year pilot in Tuscaloosa, where 45 students will have the opportunity to participate in leadership training, social networking and community engagement.

These programs contributed a total of 12,000 hours of training and 1,250 hours of mentorship in 2024, equipping participants with essential skills and fostering meaningful connections. Additionally, 25 partners engaged in project development across the state, providing program participants with an array of experiences and expertise. In 2025, the HBCU Innovation Experience will continue to address the growing demand for enhanced tech and entrepreneurial training for HBCU students, faculty, staff and communities across the state.

Photo credit: Innovate Alabama 16 | INNOVATE ALABAMA ANNUAL REPORT 2024

Impact Statements from Participants Access to Resources “The Innovate Alabama Network funding will significantly enhance LaunchBox at Athens State University’s ability to support entrepreneurial growth and innovation within our community. With this funding, we will achieve three key milestones that will expand our resources and programs, empowering aspiring entrepreneurs and small business owners to turn their innovative ideas into thriving businesses. Our initiatives not only contribute to the economic development of the area but also support the creation of new jobs and services, driving positive change and ensuring the community remains vibrant and resilient.”

– Athens State University, Innovate Alabama Network recipient

“Innovate Alabama has significantly amplified CARA’s impact, enabling us to more than double our reach and effectiveness. By providing crucial support in the form of collaborative networks, funding opportunities, and innovative resources, Innovate Alabama has empowered us to scale our efforts.

This partnership has enhanced our ability to connect businesses with the capital and tools they need to grow, allowing us to serve twice as many businesses and entrepreneurs. As a result, CARA has been able to drive greater job creation, business expansion, and regional economic development, further solidifying our role as a key catalyst for economic growth in the region.”

– CARA, Tax credit recipient

Photo credits: Innovate Alabama 17 | INNOVATE ALABAMA ANNUAL REPORT 2024

“InvestAL scrutinized our business just like any other venture capitalist would, prior to their investment in us. So now, being able to go to New York and other major fundraising hubs and say our state program does the same level of due diligence that a venture capitalist or an investment banker does, is very validating. Similarly, National Institutes of Health provided deep scrutiny when they provided funding for the development of the Kalm Patch in 2 separate grants that have been awarded. Having InvestAL’s approval just adds yet one more level of validation to help us check all those boxes.”

– Chris Seibert, CEO of KALM Therapeutics, InvestAL recipient

Talent Development “Sloss Tech was really important for me. Getting more informed about people connected in this technology world, meeting mentors working on startups themselves and winning this competition were thrilling to me.”

– Julian Woods, University of Alabama student Co-founder, TappedIn Winner, Sloss Tech 2024 Student Pitch Competition Emerging Innovation Scholars (BIG Ideas) participant

“Interning at BBT Connects has been an eye-opening experience for me, as it highlighted the critical need for data and AI skills in government and organizational settings. It has made me realize how these skills can aid in predicting and making better decisions. As someone planning to major in cybersecurity engineering, this internship has equipped me with new skills and problem-solving abilities that will be helpful in securing networks. My experience with the Data Scholars program has been invaluable, not only in connecting me with an industry internship but also in providing opportunities to learn from professors and speakers about post-high school prospects and ongoing skills development.”

– Irene, Alabama Data Scholars participant

Lifestyle & Recreation “People from Alabama have long known that our state is filled with natural beauty and has something for every outdoor enthusiast, and now we’ll have a comprehensive inventory of all of Alabama’s outdoor recreation assets, along with the SEEK AL website that will serve as a central hub for outdoor recreation in the state.”

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– Chris Blankenship, Commissioner, Alabama Department of Conservation and Natural Resources, Chair, Innovate Alabama Council on Outdoor Recreation

Innovate Alabama Elevates Talent at Sloss Tech Through Sloss Tech’s Next in Tech initiative, Innovate Alabama is fostering the growth of the next generation of tech innovators and entrepreneurs in Alabama.

As a proud sponsor of the Next in Tech program, Innovate Alabama provided college and university students from all regions of the state with the opportunity to attend the Sloss Tech conference and engage in specialized student programming at no cost on June 27 and 28, 2024. This initiative ignited a vibrant tech energy throughout downtown Birmingham’s two-block event area.

During the conference, Innovate Alabama hosted a range of programming focused on four talent development initiatives: entrepreneurship, community building, skill development and networking.

In addition, the organization held Sloss Tech’s first-ever Student Pitch Competition, engaging students from across the state, including two current HBCU Innovation Experience participants, Alabama A&M student Georgianna Wright and Talladega College student Jevon Tatum and one Emerging Innovation Scholars

(BIG Ideas) participant Julian Woods, a student at The University of Alabama. Other students attended Sloss Tech as part of FuelAL, a statewide program of Innovate Alabama and the Economic Development Partnership of Alabama (EDPA) and the QuantHub Alabama Data Scholars Internship Program.

At the Next in Tech Ice Cream Social, had the chance to connect with emerging talent. Top companies like Protective Life, NASCAR and Result Group attended the event to scout for talent.

Protective Life Director of Talent Acquisition Eric Hess said, “It’s wonderful to see companies from all over the country come and attend this event and be a part of something special. Sloss Tech is one of a kind and we’re fortunate and grateful to be out here to showcase and support the overall community of Birmingham as well as share what we’re looking for from a talent perspective.”

NASCAR’s Brandon Thompson said, “NASCAR is becoming increasingly more driven by technology and sustainability, so the great part about Sloss Tech is that we have direct access to this emerging talent.”

Bade Schnurr of tech recruiting firm Result Group said, “The more that we can retain tech talent or bring them back, the more we can grow our ecosystem and continue to build Birmingham and Alabama as a tech hub.”

A significant moment of the event was the keynote address by Shegun Otulana, a visionary Alabama entrepreneur, founder of Harmony Venture Labs and Innovate Alabama commission member. Having sold his company Therapy Brands for $1.2 billion, Otulana shared invaluable insights with young talent in the audience on taking risks, finding your passion and surrounding yourself with a network of mentors.

Photo credit: Innovate Alabama 19 | INNOVATE ALABAMA ANNUAL REPORT 2024

Otulana’s journey and wisdom served as a powerful reminder of the potential within Alabama and the limitless opportunities awaiting the next generation of tech leaders and innovators in the state.

State of Innovation Day The future of innovation in Alabama took center stage on December 10, 2024, during Innovate Alabama’s annual State of Innovation Day at Regions Field in Birmingham. Sponsored by Alabama Power, Protective Life and Blue Cross Blue Shield, the event was a mix of fireside chats, panel discussions and groundbreaking conversations that highlighted Alabama’s incredible strides toward becoming a tech and innovation powerhouse.

that are helping them build the skills they need to succeed in the tech and entrepreneurship fields.

The day’s excitement culminated with the announcement of Innovate Alabama’s Innovator of the Year, awarded to Dr. Todd Greer, Executive Director of Innovation Portal.

“This recognition is such a great honor,” said Greer. “Over the past three years, through the development of Innovate Alabama, I have witnessed so much growth in our state Kicking off the day, Bill Poole, Chair of Innovate as we impact countless lives, gain national recognition Alabama’s Board of Directors, took the stage to reflect on and make our state better for future generations. I the remarkable progress Alabama has made in fostering a am delighted to serve alongside so many incredible thriving entrepreneurial ecosystem. “Innovate Alabama is partners and founders from across this great state.” fueling the state’s economy presently and in the future by investing in and supporting the companies and individuals The Founder Fest Showcase wrapped up the event involved in leading us all,” Poole said, setting the tone for with awards for six Alabama-based entrepreneurs who an afternoon filled with big ideas and bold steps forward. had competed in the Founder Fest Pitch Blitz earlier in the day. These entrepreneurs were honored for their Innovate Alabama CEO Cynthia Crutchfield followed, innovative products, ideas and pitches. The evening celebrating the organization’s accomplishments in 2024 also included an opportunity for Alabama’s most and casting a vision for the year ahead. “2024 was a promising startups to present their ideas and innovations landmark year for Innovate Alabama, much like our first to investors, partners and the broader community. The year. We started the year saying, ‘more in ’24,’ and energy was palpable as entrepreneurs networked, while we don’t yet know what the new year will hold, exchanged ideas and formed connections that are it has to be more, so get ready,” Crutchfield shared, likely to shape Alabama’s future business landscape. hinting at the exciting initiatives planned for 2025.

Two of the most anticipated segments of the day included a spotlight on Jesse Draper, founding partner of Halogen Ventures and a fireside chat featuring InvestAL recipient and Alabama native Dr. Lonnie Johnson, founder of Johnson Energy Storage and inventor of the Super Soaker. Jesse announced Innovate Alabama’s InvestAL investment into Halogen, ultimately leading to Halogen Ventures’ $10 million investment in Alabama founders.

Innovate Alabama’s commitment to nurturing the next generation of leaders and innovators was clear in the Helping Innovators Grow Roots Panel, moderated by Senator Bobby Singleton, Innovate Alabama board member. Featuring six standout students from Innovate Alabama’s Talent Development programs, the panel highlighted the incredible potential of Alabama’s youth and the programs 20 | INNOVATE ALABAMA ANNUAL REPORT 2024

Photo credit: Innovate Alabama

Fast Company Festival Since its inception, Innovate Alabama has made significant strides in attracting and retaining innovators across the state. The Fast Company Innovation Festival provided a prime platform to celebrate and showcase the state’s progress. Innovate Alabama leaders walked away from the festival with a renewed sense of purpose and mission, fresh ideas for making big ideas come to life and increased excitement about building on Alabama’s unstoppable innovation momentum.

Innovate Alabama started the week off with a bang, showcasing three Alabama founders on a panel discussing Alabama’s leadership in the future of innovation. Britney Summerville, Innovate Alabama board member and founder of Birmingham Bound; Shegun Otulana, founder and CEO of Harmony Venture Labs; and Tamar Blue, founder and CEO of MentalHappy, shared how Alabama’s unique strengths played a role in their abilities to thrive as entrepreneurs.

Held in September 2024, The Fast Company Innovation Festival presented a unique opportunity for Innovate Alabama ecosystem members. Innovate Alabama seized the chance to lead the charge in elevating new Alabama companies, while reinforcing the work that is being done across the state to help innovators thrive. Fast Company, a leading media brand for thought leaders, business influencers and millennial and Gen Z readers, serves as a critical convener for thought leaders from across the nation. The festival provided a space for collaboration and networking among ecosystem partners, amplifying the work being done across Alabama to help innovators thrive.

One ecosystem partner, Carter Wells, Vice President for Economic Development at HudsonAlpha in Huntsville, was interviewed on Fast Company’s The New Way We Work podcast. The episode, titled “Innovating for impact: how this Alabama-based tech institute fuels biosciences discovery,” highlights what it takes to build a true ecosystem of innovation and how Alabama is a prime example of the success. The festival served as a catalyst for amplifying the remarkable innovation happening in Alabama. Innovate Alabama leaders spent the week learning about cutting-edge approaches to supporting entrepreneurship and they will work to implement them to further strengthen the state’s innovation ecosystem.

Tiffany Whitlow and Del Smith, PhD, co-founders of Acclinate, kept the momentum going by being recognized as a 2024 Fast Company Best Workplace for Innovators.

Whitlow accepted the honor, reinforcing that Alabama is a great place to live and work as an innovator.

To close out the week, Alabama-based Storyteller Overland and SEEK Alabama joined forces to demonstrate what Alabamians know well: The state is a beautiful place to live and explore. With terrain ranging from mountains to sandy beaches, Alabama has an outdoor offering for every person to enjoy. And, as innovators continue to look for the right places to put down roots, the ability to create a life one loves outside of the office will increasingly make Alabama the right place for many.

Photo credit: Innovate Alabama 21 | INNOVATE ALABAMA ANNUAL REPORT 2024

Innovate Alabama Staff

Chief Executive Officer, Innovate Alabama

Program Director, HBCU Engagement

Executive Director, Outdoor Recreation Programs

External Affairs Director

Cynthia Crutchfield

Shannon Allen

T.C. McLemore

Hope Brasell

Program Director, Tax Credits

Executive Director, SSBCI

Executive Assistant

Kelly McNair

Charlie Pond

Program Director, Access to Capital

22 | INNOVATE ALABAMA ANNUAL REPORT 2024

Mary Beth Grant

Roslynn Stone

Photo credits: Innovate Alabama

Events: Sloss Tech June 26 – June 27, 2025 Fast Company Innovation Festival September 15 – September 18, 2025

Talent Pilot Programs: Alabama Cybersecurity Fellowship Alabama Creating Entrepreneurial Opportunities (CEO) Alabama Veteran Workforce Network Development

Connect with us: info@innovatealabama.org @InnovateAlabama linkedin.com/company/innovate-alabama/ @InnovateAlabama facebook.com/innovatealabama/