Velocity accelerator firms score $1.4 M in funding

Birmingham’s Velocity Accelerator Program is off to a prosperous start in more ways than one.

The new program, which launched last year and aimed to boost the profile of Birmingham’s startup scene and help entrepreneurs grow their businesses, wrapped up its first year in April with its Demo Day.

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Innovation Depot, the location of the Velocity Accelerator Program.

But perhaps the most exciting news for the young program is the funding. Of the nine teams that presented at Demo Day, four have received follow-on funding totaling $1.4 million – an amount that includes $150,000 from the Velocity Accelerator Fund.

Two of the companies that raised money, Planet Fundraiser and Glow, have also expanded into larger offices at Innovation Depot and plan to continue growing in Birmingham.

“The Velocity program is one of many examples highlighting the transformation taking shape in the greater Birmingham technology ecosystem,” Scott McGlaun, CIO of Blue Cross Blue Shield and current Chairman of the Board of Innovation Depot. “It is extremely encouraging to see first hand the support and involvement from corporate technology executives, successful entrepreneurs, accounting and law firms, venture capital experts, and the Innovation Depot.”

Two out-of-town companies that came to the Magic City for Velocity, Delect and LikelyAI, are still in Birmingham and are planning to continue growing their businesses in the Birmingham area, according to Innovation Depot CEO Laney.

“We continue to be very pleased with the results from the first cohort of our Velocity Accelerator Program,” said Laney. “We look forward to welcoming another group of 10 high-growth tech startups in January as we move forward with our goal of driving technology-based economic development in the Birmingham region.”

Currently, over 20 full-time and part-time jobs have been created by Velocity companies. Applications for the 2018 class are currently open and the deadline to apply is October 31. The program officially starts in January 2018.

“Our entire community is supportive of start-ups. Birmingham is one of the best cities for an entrepreneur to start his or her business, and the Velocity Accelerator program at Innovation Depot is ground zero,” McGlaun said.