Insightful Fact: Alabama Futures Fund using investment as a source of hope for contributing to growing Alabama.
On Thursday evening at Harvest Market June 6th, 2019 Young Pioneers of Birmingham, in support of REV Birmingham host Alabama Futures Fund (AFF) managers Matt Hottle (IN) and Mickey Millsap (IN) of Redhawk. During that event they provided detailed overview of the origination of the fund, the fund objectives, and what it hopes to accomplish.
Here are the details to the best of ability to recall them:
The fund is made up of seven investors to include Redhawk, the City of Birmingham, Raymond J. Harbert, Charles Barkley, Protective Life Corporation, and a unnamed local utility company
The total fund size is $25 million that is planned to be given to 20 – 25 start up companies over the next 5 years with a investment range of $250K – $750k
per company. The AFF expects the companies they invest in will require another sizable round of funding from larger funds perhaps another $1.5m – $5m. I believe they said the fund has a limit of no more than $2 million to one company.
The hope is that the minimum projected valuation is of the company within the next 10 – 20 years will grow to at least $500 million to $1 billion.
Criteria for investment include: has a strong founding team that is coachable, market potential is large, current customers are healthy and many more of them are available, lead team is metrics focused, they are thoughtful, and must be headquarter and led from anywhere in Alabama
The following are reason sited for why entrepreneurs have been attracted to Alabama: we are very capital rich, we have a great tech and talent base, great values, and we are willing to share. Cost of living is lower compared to many other regions of the company, and we are friendly genuine people
The Alabama Futures Fund is in the process of building our a building that will house Redhawk under 3,000 square feet and the about three times that amount available for companies they have made an investment in. So far three investment have been made thus far.
AFF believes that if even 3 – 4 companies achieves billion dollar valuation that it will create an economic impact that could have last affest similar to what had is happening in Austin, TX
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