Birmingham-based seed-stage venture capital fund Alabama Futures Fund has made an investment in a firm that will relocate its headquarters to the Magic City.
AFF invested in Tampa-based Allison Fintech Co. Allison is a banking-as-a-service platform that enables banks to incorporate fintech products into their traditional payment remittance and banking service offerings. Allison’s BaaS offering uses software that connects non-bank financial services customers with participating banking partners and incorporates compliance tools, low-code workflow creation tools, and embedded finance functionality.
Financial details were not disclosed.
In connection with the investment from AFF, Allison is making the move to Birmingham while maintaining an office in Tampa and establishing a presence in Austin. These locations are meant to be the foundation of Allison's nationwide growth strategy.
“The commercial banking landscape has changed dramatically over the last five years with the emergence of decentralized financing, advanced payment processing and near-frictionless account transactions for both consumers and businesses," said Matt Hottle, partner at Redhawk. "Regulatory-compliant technology that fosters increased access, speed and efficiency has become a requirement for banks looking to expand their markets.”
AFF served as the lead investor for Allison’s current fundraising round following Allison’s graduation from the JP Morgan Techstars accelerator program in Miami.
"We are poised to deepen our foothold in the U.S. with the opening of our new headquarters in Birmingham, a city swiftly gaining momentum for its vibrant tech scene and welcoming business climate," said Brian Alvarez-Bailey, CEO of Allison. "Our expansion reflects not only our company's robust growth but also our unwavering commitment to our clients. We're extremely appreciative of the support from Alabama Futures Fund, Techstars and The Everywhere Fund, as these investments validate our vision and will catalyze our continuous innovation in the fintech landscape."
The choice of Birmingham for Allison's new headquarters highlights the city's growing stature as a technology and innovation hub.
The investment represents the seventeenth investment from AFF since the fund launched in the third quarter of 2018. AFF served as the lead investor on the round with participation from other United States-based investors. Redhawk Advisory serves as the investment manager of AFF and advised AFF on the Allison investment.
