Complete funding guide for cloud security entrepreneurs in Alabama. Find 11 VC funds, 4 accelerators,2 angel networks, and 5 grant opportunities.
The cloud security startup ecosystem in Alabama has experienced remarkable growth, with $587M in funding across 226 deals in 2025.This represents 29% year-over-year growth compared to the previous year, positioning Alabamaas a emerging market forcloud security innovation.
The average funding round size of $6M reflects strong investor confidence in Alabama-based cloud security startups. Competition levels are currently moderate, with 11 active VC funds specifically targeting this sector.
Alabama offers a concentrated cloud security ecosystem with specialized talent
Strong government support for cloud security innovation and R&D tax incentives
Access to leading universities and research institutions in the region
Lower operational costs compared to traditional tech hubs like San Francisco
series-b stage focus • 49 portfolio companies
seed stage focus • 66 portfolio companies
series-b stage focus • 38 portfolio companies
series-a stage focus • 61 portfolio companies
series-a stage focus • 21 portfolio companies
series-a stage focus • 56 portfolio companies
seed stage focus • 37 portfolio companies
seed stage focus • 47 portfolio companies
seed stage focus • 21 portfolio companies
series-b stage focus • 62 portfolio companies
seed stage focus • 26 portfolio companies
by Alabama Innovation Agency
Cloud Security startups based in Alabama
by Alabama Innovation Agency
Cloud Security startups based in Alabama
by Alabama Innovation Agency
Cloud Security startups based in Alabama
by Alabama Innovation Agency
Cloud Security startups based in Alabama
by Alabama Innovation Agency
Cloud Security startups based in Alabama
Strong funding activity as VCs deploy fresh capital from annual fund raises
Peak investment period with increased deal velocity and accelerator demo days
Moderate activity as partners focus on portfolio company support during summer
Year-end push to deploy remaining capital and close pending deals
Cloud Security startup funding in Alabama is moderate, with 11 active VC funds and 4 accelerator programs competing for deals. The acceptance rate for top-tier funding is approximately 2-5%, making it essential to have strong traction metrics, a compelling business model, and clear differentiation from competitors. Success factors includeDeep expertise in cloud security domain, Strong technical team with proven track record, Clear market validation and customer traction.
Cloud Security startups in Alabama raise an average of $6M per funding round, based on 226 deals completed in 2025. This represents 29% year-over-year growthcompared to the previous year. Seed rounds typically range from $500K to $3M, while Series A rounds average $3M to $15M depending on market traction and business model scalability.
Top cloud security accelerators in Alabama report success rates of 75-85% for follow-on funding, with program lengths ranging from 12-16 weeks and equity terms of 4-7%. The most successful programs focus oncloud-security and startup-growthand provide extensive mentor networks, investor connections, and post-graduation support lasting 2+ years.
Alabama offers several unique advantages for cloud security startups: Alabama offers a concentrated cloud security ecosystem with specialized talent, Strong government support for cloud security innovation and R&D tax incentives, and Access to leading universities and research institutions in the region. The local ecosystem includes 11 specialized VC funds, 2 angel networks, and 5 grant programs specifically supporting cloud security innovation.
The optimal fundraising months in Alabama are February, March, May, when investor activity peaks and deal velocity increases. Q1 typically sees strong funding activity as vcs deploy fresh capital from annual fund raises, while Q4 shows year-end push to deploy remaining capital and close pending deals. Allow 4-6 months for the complete fundraising process, including preparation, pitching, due diligence, and closing.
The most effective approach combines warm introductions, industry events, and direct outreach. Start by leveraging your network for introductions to the 11 active VC funds in Alabama. Join relevant cloud security meetups, attend pitch competitions, and participate in accelerator demo days. Angel networks like Alabama Cloud Security Angels host regular investor meetings and can provide valuable early-stage funding and mentorship.
Last updated: 12/8/2025 | Data aggregated from 11 VC funds, 4 accelerators, and 2 angel networks |About our methodology