Birmingham, state of Alabama lead energy tech revolution

2 companies from recent Techstars Alabama cohort will move to Birmingham

Alabama strengthened its reputation as a global hub of energy technology innovation when nine startups revealed their growth plans during Techstars Alabama EnergyTech Accelerator‘s Demo Day 2021 in December at Red Mountain Theatre in Birmingham.

The startups pitched their strategies at the conclusion of a 13-week cohort in the Magic City that was sponsored by Alabama Power Company and other agencies.

Of the nine companies, seven plan to move to or maintain a presence in Birmingham.

Moduly, originally based in Montreal, and HData, originally based in Joliet, Illinois, are moving to the Magic City.

Five companies — Accelerate Wind, Birdstop, Flux Hybrids, Khepra and Noteworthy AI — will maintain a presence in Birmingham to conduct pilots, create second offices or plan for expansion.

HData, founded in 2018, is an early-stage regulatory technology startup. The company’s platform uses regulatory data to automate compliance and business intelligence for electric utilities, gas companies and oil pipelines.

Hudson Hollister, HData founder and CEO, announced the company’s relocation to Birmingham — and a strategic partnership with Alabama Power — at Demo Day on Dec. 7.

“Because of Alabama Power and Techstars, Birmingham, Alabama, is the best place in the world to build an early-stage company focused on utilities,” Hollister said.

The nine Techstars startups arrived in Birmingham in September from across the United States and Canada to develop their companies with help from 120 corporate and community mentors across the state, including entrepreneurs Shegun Otulana and Jim Cavale and chef Chris Hastings.

“They’ve been exposed to our Southern hospitality — our region, our culture, everything we have to offer,” Birmingham Mayor Randall Woodfin said. “Every single one of them, regardless of where their success story takes them, will get to share that their journey started in Birmingham.”

The Techstars Alabama EnergyTech Accelerator is the only Techstars accelerator in the United States focused on energy. Through its corporate accelerators, Techstars develops partnerships with corporations to add industry expertise through mentorships, business development opportunities and access to resources. Alabama Power is Techstars’ first electric utility partner.

“In the energy and technology space, this is a great new frontier,” said Tony Smoke, Alabama Power’s senior vice president of marketing and economic development. “We’ve got a lot of opportunities with our universities and with our existing industries partnering together to us e this technology to our advantage. It gives us the opportunity to stay in the game.”

The Alabama EnergyTech Accelerator has been one of the most successful in the history of Techstars, having raised more than $30 million in capital for the first class in 2019. Out of that first class, four companies are now raising seed-series B funding and four companies have committed to maintaining a presence in Alabama.

“It really speaks well of the trajectory of innovation and entrepreneurship in our state and in this particular Birmingham region,” Alabama Department of Commerce Secretary Greg Canfield said. “We’re at a collision point of technology, energy and advanced manufacturing all coming together in one important moment. To have Techstars pulling together this class is all a sign post that the state of Alabama is going to continue to take a leadership role as it relates to innovation, technology and entrepreneurship.”

The accelerator is supported by Alabama Power, the Economic Development Partnership of Alabama, the Alabama Department of Commerce, Altec, PowerSouth, the University of Alabama and Southern Research.

The companies invited to participate in the accelerator specialize in technologies and business models to enhance the future of energy, including artificial intelligence for the power grid, renewable energy, consumer sustainability and weather prediction.

“I have never felt so supported before as an entrepreneur or as a founder,” Hollister said. “The accelerator put me together with colleagues who are in the same stage, have the same challenges, the same insecurities and the same passion in other directions in energy as I do. Because of that companionship and camaraderie, we’ve been able to work much faster and become much more effective than we ever could operating on our own.”

“The Techstars Alabama EnergyTech Accelerator has connected us to a vibrant startup ecosystem here in Birmingham,” said HData co-founder Yuval Lubowich, a two-time alum of Techstars accelerator programs. “Thanks to Alabama Power’s support and the accelerator’s hard work, there is no better place to transform the way energy companies generate and use their regulatory data. We look forward to joining that ecosystem, building a world-class team here and growing the future of regulatory data as a Birmingham company.”

HData will deliver its Data Hub solution to provide instant peer comparisons and financial insights from regulatory data to all Alabama Power offices. Throughout 2022, Alabama Power and HData will work closely together to design HData Insights, the next generation of energy regulatory business intelligence, to bring smart dashboards and predictive analytics to inform financial management and regulatory compliance.

Alabama Power participated in HData’s $3 million seed funding round, led by Hyde Park Venture Partners and Firebrand VC, alongside other local and national investors.

For more information about the Techstars Alabama EnergyTech Accelerator, visit techstars.com/accelerators/alabama-power.

– This story combines two Alabama News Center reports and was edited by the Iron City Ink staff.