New investments in vertical farming to improve food quality and ensure security

  • 28 Dec 2021 11:30
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New investments in vertical farming to improve food quality and ensure security

Vertical farming has become the efficient way to grow quality vegetables, herbs, and crops in confined spaces and controlled environment. With a significant rise in popularity worldwide, startups and leading companies have been developing new technologies and techniques to grow variety of plants and crops. They aim to solve the issues of global warming and food security along with improving the quality of crops and plants. Investors are excited to unlock the potential of vertical farming and transform the food system. They have been investing in various ventures, technologies, and innovative startups.

With so much money funneling in, it will be interesting to see how the industry shapes in the coming years. According to new research report, the global vertical farming market is expected to reach $12.77 billion by 2026 and growing at a faster pace with 24.6% CAGR.

Following are some of the activities taking place across the industry:

Growing a variety of plants and providing automated care to reduce human labor is one of the prime objectives of companies. They have been raising funding to achieve the aim. iFarm, one of the vertical farming technology provider, raised $4 million in a seed funding round led by Gagarin Capital. Other investors include Matrix Capital, IMI.VC, Impulse VC, and others. This startup offers vertical farmers with software that automates care for plants such as cherry tomatoes, salad greens, and berries. The software includes computer vision and machine learning techniques to collect data throughout the network. It has been offering automated care to nearly 120 types of plants.

Max Chizhov, the Co-Founder and CEO, outlined that the new funding will be utilized for expansion of business into new regions. However, the software development remains the priority. He emphasized on their plans to add more crops, build new products, and expand research and development scope. Mikhail Taver, the GP of Gagarin Capital, highlighted that iFarm stand out among its competitors with its technology. Moreover, the company saw a huge potential in the vertical farming sector. There are issues such as global warming and sustainability and they have been addressed by iFarm.   

Latest trends, Collaborations and Launches:

The trend of investment into vertical farming continues with foundation of new company. Determining the opportunities in the sector, companies have been teaming up and launching a new firm to unlock the potential. Bayer’s investment unit Leaps by Bayer and Singapore-based investment firm Temasek launched Unfold. Both companies have jointly invested $30 million as an initial investment.

The newly launched company will focus on development of innovative vegetables to offer enhanced quality and sensory experience. Despite the tremendous potential, there is a lack of power of seeds along with digital solutions focused on this sector. John Purcell, the CEO of Unfold outlined in the blog post that the company’s aim is to highlight the value of vertical farming and become the major part of food ecosystem.

With an objective to take vertical farming to isolated parts of the region, two companies have collaborated and invested for development of facilities. Canada-based Elevate Farms and North Star Agriculture Corp. joined hands for bringing vertical farming technology to Northern Canada. Isolated parts of the region would be equipped with vertical farms. Both companies signed an agreement to invest nearly $10 million for installation of automated vertical farming facilities in Yukon and other Canadian territories.

The company aim to produce around a million pounds of leafy vegetables each year through new facilities. Its technique depends upon its patented LED technology, hydroponics, and automation for growing leafy vegetables and herbs. Elevate highlights that its technique utilizes less resources and human labor. The company aims to bring food security to isolated parts of Canada through installation of new facilities.

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Jack Andrews By, Jack Andrews
Jack Andrews - the founder of Sublime. I spent my love on every tech product. I hope my sharing about technology devices will bring the best information as well as up-to-date data in the market right now.
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