As the Techstars EnergyTech Accelerator begins its second cohort, there is a sense of great momentum and opportunity.
The program is a mentorship-driven accelerator designed to help develop startups that are building business models and technologies to enhance the future of energy. Focus areas include smart cities, “Internet of things,” industrial electrification, connectivity and electric transportation.
Nate Schmidt, managing director of the accelerator, said the cohort had a great first class, which fueled momentum for a second round of recruitment.
“We have a wide range of projects that these entrepreneurs are working on,” Schmidt said. “They all came from outside the state, so we’re bringing a lot of really fantastic talent into Birmingham, and I love the projects they’re working on. I love the entrepreneurs behind the projects. When I recruit, I’m looking for extraordinary founders, and ideas come second. This is an extraordinary group of founders.”
A previous cohort had three local startups, including Ashipa Electric, Con.Doit and TruSpin, but none are local this time around.
“We very much run a national and even international recruiting process. We select the best companies, and sometimes those are going to come from the region, and sometimes they’re not,” Schmidt said. “When you only have 10 companies in the class, it’s not a big enough sample size to really draw any conclusions other than these were the companies that we thought were extraordinary and that we wanted them here and they wanted to be here. All these companies are excited to travel to Birmingham. And we’re thrilled that they’re here.”
With 10 companies coming from larger innovation markets like Chicago, San Francisco, Boston and Montreal, among others, Schmidt said there is high potential for some of those companies to relocate their headquarters to Alabama or have an extended presence in Birmingham.
Last year, multiple out-of-town startups relocated or established a presence in the metro. Schmidt said he hopes that can be replicated with this year’s cohort, but it will depend on not only the Techstars program but other outside factors as well.
“I love it when people discover all the opportunities exist in Alabama and elect to ... continue to grow their company here. That, to me, is an outcome that is reliant on more things than just Techstars,” he said. “As people see what Alabama has to offer, see what our entrepreneurial and corporate partners and communities have to offer, (and) see what a great state that we have, (I hope) they stick around. I’m confident that some or many will, but at the end of the day, these companies will do what’s best for their company in the long term.”
Schmidt said expectations for the program and its cohort members are higher this year because of the success of the previous class. Leaders are looking for the companies to sell and further develop their products during the course.
Schmidt said he also has high expectations of local community members related to support, mentorship and guidance. Alabama Power is returning as a major partner of the program. Other supporters are on board as well, including Southern Research, Altec and the Department of Commerce.
