The initiative aims to establish scalable startups that address real-world problems in key industries such as agriculture, healthcare, fintech, and industrial systems.

The Innovate Alabama Venture Studio will concentrate on high-growth startups in sectors like AgTech, Fintech, medtech, and industrial systems.

By focusing on underserved markets across the state, the studio aims to foster innovation and drive economic growth.

This initiative is an extension of existing entrepreneurial efforts in Alabama, which generated nearly $72 million in economic impact and created over 607 jobs in the previous year.

Alabama has a history of successful startups, including Fleetio, a fleet management company valued as a unicorn, and Shipt, which was acquired by Target for $550 million.

Key supporters of the initiative, including Mary Beth Grant and Britney Summerville, believe the venture studio model aligns with Alabama's economic priorities and encourages local growth.

Alabama has officially launched its first state-backed venture studio, named the Innovate Alabama Venture Studio and Fund, through a collaboration between Innovate Alabama and Harmony Venture Labs.

Harmony Venture Labs, founded by prominent entrepreneur Shegun Otulana, will manage the studio and fund, focusing on transforming innovative ideas into viable businesses.

Otulana emphasized the importance of addressing gaps in capital and attention for startups in Alabama, aiming to foster a sustainable engine for innovation in the state.

The primary objective of the venture studio is to establish 10 new venture-backed startups in Alabama by 2028, with a goal of attracting at least $10 million in venture capital.

A public event at Sloss Tech on June 26, 2025, will feature discussions about the venture studio's impact and future plans.

Unlike traditional startup accelerators, the venture studio model focuses on incubating ideas and companies from inception, rather than working with established businesses.