HUNTSVILLE — With the MidCity District of Huntsville becoming a hotspot for rip-roaring fun and good food, we shouldn’t forget it was also designed to be a hub for high technology start-ups and entrepreneurship.
Enter gener8tor, MidCity’s first technology/business accelerator and capital investment firm. While awaiting a permanent home in MidCity in 2023-2024, temporary space at UAH’s Invention to Innovation Center is enabling gener8tor to pump some gas into Huntsville’s start-up business engines.
Gener8tor launched its first accelerator in Alabama in 2020 and has eight programs running in the state. In North Alabama, gener8tor has partnered with MidCity developer RCP Properties to run the accelerator. The firm has just announced a partnership with the HudsonAlpha Institute of Biotechnology to provide acceleration programs for its tech start-ups.
“One way start-up companies can take advantage of our accelerator right now is to apply for an opportunity to pitch investors and partners at any of our upcoming trade shows or conferences,” said Haley Medved Kendrick, senior managing director for gener8tor Investment Accelerators. “One such show within driving distance of Huntsville is the Onramp Healthcare conference in Birmingham in August.
To attend the shows, companies need to apply to gener8tor, Kendrick said.
“We have been able to bring in some early-stage companies we don’t invest in, but we help get them get ready for investment opportunities,” she said. “We run that program twice a year – one in Huntsville and one in the Shoals.
“For later-stage companies, we have an investment accelerator with $100,000 investments for each company that gets into the program, and we are recruiting for both of those programs now.”
To prepare start-up companies for investment, gener8tor helps the companies tidy up their pitch decks and executive summaries and acquire any documentation needed for investors.
Gener8tor’s proprietary platform brings together startup founders, investors, and corporations, with job seekers, universities, and more. There are more than 75 programs designed to accelerate growth among young startups.
Kendrick said cohort sizes are small to provide a tailored approach with their programs. Gener8tor works with each company on setting and changing goals, as well as helping create sales and building connections with investors.
“We make about 100 one-on-one mentor introductions and about 100 one-on-one investor connections for the companies gener8tor accepts,” Kendrick said. “We are making real investments in these companies, so we really do our due diligence in deciding which are the best investable companies capable of a multimillion-dollar exit.”
After the initial start-up application opening in September, Kendrick said there is an eligibility check followed by three rounds of interviews. Gener8tor makes the process rigorous because of the significant investment it may make. In so doing, entrepreneurs must be willing to make growing their startup a fulltime job.
Gener8tor doesn’t demand startups be technology companies. But they must be venture backable, which means a defined market size and accelerated growth rates.
That generally eliminates consulting agencies, nonprofit organizations, and brick-and-mortar type businesses because of the overhead. Since the money goes a long way in terms of rapid scalability, the startups tend to be tech companies.
In fact, gener8tor’s largest exit was Pretty Litter, a hybrid technology cat litter company. The product is a lightweight litter that changes color if a cat has identifiable health issues such as diabetes or kidney infections.
“They sold Pretty Litter to Mars for about $1 billion this year,” said Kendrick. “They were one of gener8tor’s biggest exits. So, while a successful business does not have to be a technology company, it is usually something innovative that grows quickly and has a big exit.”
Kendrick said, between its community partnerships with RCP Properties and HudsonAlpha, there will be program opportunities for startups in September.
“We expect, based on this year’s applications, to come out with 10 to 15 new companies in our accelerator next year,” she said.
To apply, fill out and submit the gener8tor application here.
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