Alabama looks for tech to ignite future economy

“Gary Tauss, chief executive of Huntsville’s BizTech, said even though his incubator is not as narrowly focused as Lea and Mason are calling for, BizTech companies do have an emphasis on high-tech commercial enterprises.

While Alabama may have the strength of its university system and the two-year colleges to draw on, what it is lacking is access to venture capital and angel capital to get upstarts going and see them through the early stages, experts say.

Tauss said in the fourth quarter of last year, there were 744 venture capital investments made across the United States. Alabama’s total? Just one.

 He said for every 60 new products or ideas that are commercially viable, only 25 will have a business plan to make them fundable. Of those 25, only 10 will make it to the business incubator stage. Of those 10, only about two will become companies that continue on and live apart from the incubator.

Tauss said Alabama is doing a number of things right. There are 21 incubators in the state, though he suggested too many of them are general incubators rather than having a more narrow focus on a particular industry. Efforts like Alabama Launchpad, a business competition, and a new statewide angel capital network organization are useful, he said.”

By Michael Tomberlin — The Birmingham News

To read the full article: http://www.edpa.org/docs/news/BN081311.pdf