Indoor vertical farming startup Bowery Farming raises $300 million By Reuters
© Reuters. Indoor vertical farming startup Bowery Farming in Kearny, New Jersey, U.S. reveals its leafy inexperienced merchandise which can be shipped to over 800 shops, on this undated handout picture launched on Might 24, 2021. Bowery Farming/Handout by way of REUTERS
By Jane Lanhee Lee
(Reuters) – New York-based indoor vertical farming startup Bowery Farming mentioned on Tuesday it raised $300 million in its newest funding spherical, valuing the corporate at $2.3 billion because the pandemic make clear the significance of securing native meals provide.
Vertical farming grows its produce in stacked preparations in technologically managed environments, lowering the necessity for huge expanses of land and bringing mass manufacturing proper in to city areas.
Whereas the brand new trade has struggled to interrupt even previously, the drop in know-how prices, reminiscent of LED lights, is altering the economics and fueling investor curiosity.
In line with PitchBook knowledge, practically $1.9 billion of worldwide enterprise capital was invested in indoor farming in 2020, practically tripling funding in 2019.
Graphic: World VC Funding in Indoor Farming, https://graphics.reuters.com/AGRICULTURE-INDOORFARMING/FUNDING/xegpbdgzjpq/chart.png
Bowery’s newest funding spherical, led by Constancy Administration & Analysis Firm LLC, could be the biggest vertical farming deal on document, based mostly on earlier such offers listed by PitchBook.
The corporate’s leafy greens are bought in 850 grocery shops and it has two business farms in New Jersey and Maryland, and a 3rd approaching line this 12 months in Pennsylvania, mentioned Irving Fain, Bowery’s CEO and Founder. Fain mentioned the merchandise are the identical or decrease in worth than their natural rivals, however declined to say whether or not Bowery was promoting them at a revenue.
“The actual good thing about what we’re rising at Bowery is initially, it is fully pesticide free,” mentioned Fain, including that a big a part of the ability used for the farms is renewable with an intention to ultimately make it absolutely renewable.
He mentioned the brand new funds will likely be used to develop farms throughout the US, on the lookout for international enlargement alternatives, and growing new crops and know-how to develop issues like strawberries, tomatoes and carrots indoors and close to shoppers as properly.
Bowery’s traders embody GV, previously referred to as Google (NASDAQ:) Ventures, Basic Catalyst, GGV Capital and Temasek.
(This story corrects in sixth paragraph location of farm to New Jersey and never New York and will increase variety of shops to 850)
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