Which VCs fund vertical farming?

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Vertical farming has attracted over $2.5 billion in venture capital funding since 2020, with deal sizes ranging from $5 million seed rounds to $400 million late-stage investments.

The sector features a concentrated group of specialized VCs who understand the complex technology requirements and lengthy development cycles. SoftBank Vision Fund leads with the largest investments, while strategic corporate players like Walmart and Driscoll's provide crucial retail partnerships alongside capital.

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Who are the top VCs currently funding vertical farming startups in 2024 and 2025?

SoftBank Vision Fund dominates vertical farming investments with their $140 million Series D and participation in Plenty's $400 million Series E round.

GV (formerly Google Ventures) led Bowery Farming's $90 million Series B, demonstrating tech giants' interest in controlled agriculture. S2G Ventures specializes in climate-focused investments and led Intelligent Growth Solutions' £5.4 million Series A for modular vertical farming technology.

AgFunder operates as both a VC and syndication platform, participating in deals across GoodLeaf Farms, Oishii's premium strawberry operations, and AeroFarms' leafy greens production. One Madison Group and JS Capital co-led Plenty's massive $400 million Series E in 2024, the largest vertical farming round to date.

Strategic corporate investors include Walmart (supply chain integration), Driscoll's (berry market expertise), and the Temasek-Bayer joint venture Unfold, which received $30 million for germplasm innovation. These corporate players provide not just capital but crucial market access and operational expertise.

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How much capital do these VCs typically invest and at what stages?

Vertical farming investment stages show clear patterns, with seed rounds typically ranging from $5-15 million and Series A rounds between $15-50 million.

SoftBank Vision Fund focuses exclusively on late-stage growth investments, with their Plenty investments representing $140 million (Series D) and $400 million (Series E) rounds. These mega-rounds require proven commercial traction and clear paths to profitability.

Mid-stage investors like GV and S2G Ventures typically lead Series B rounds in the $50-100 million range. S2G's portfolio approach targets Series A through C stages, with initial investments around £5.4 million that can scale to subsequent rounds in the tens of millions.

AgFunder operates across the entire spectrum from seed to Series B, typically investing $10-50 million per round through direct investments and syndicated deals. Their platform allows smaller agtech-focused funds to participate in larger rounds alongside institutional investors.

Corporate strategic investors like Walmart and Driscoll's focus on later-stage rounds where they can negotiate supply agreements and operational partnerships alongside their equity investments.

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What technologies and innovations are investors focusing on right now?

Investors prioritize energy-efficient LED systems, automated harvesting robotics, and AI-driven crop optimization platforms that can reduce operational costs by 30-40%.

Modular farming systems represent a key investment theme, with companies like Intelligent Growth Solutions developing "farming-in-a-box" solutions that can be deployed rapidly across multiple locations. These modular approaches reduce capital expenditure and enable faster scaling.

Advanced genetics and seed development attract significant investment, particularly through the Temasek-Bayer Unfold joint venture. This $30 million initiative focuses on developing crop varieties specifically optimized for controlled environment agriculture.

Energy management technologies command premium valuations, as electricity costs represent 25-30% of vertical farming operating expenses. Investors seek solutions integrating renewable energy sources, battery storage, and smart grid connectivity to reduce power costs.

Data analytics and crop monitoring systems using computer vision and IoT sensors enable predictive maintenance and yield optimization. These software-heavy solutions offer better margins and recurring revenue models that investors find attractive compared to hardware-intensive approaches.

Which geographies receive the most VC funding for vertical farming?

The United States dominates vertical farming VC activity with approximately 70% of global investment dollars, followed by Europe at 20% and Asia-Pacific at 10%.

California leads US investment activity, hosting companies like Plenty and attracting SoftBank's largest vertical farming investments. The state's combination of tech capital, agricultural expertise, and high food costs creates ideal conditions for vertical farming adoption.

New York represents the second-largest US hub, with Bowery Farming's $90 million Series B from GV highlighting the region's focus on urban agriculture serving dense metropolitan areas. The Northeast's year-round growing challenges and premium fresh produce markets support higher-margin vertical farming operations.

Europe sees concentrated activity in the UK, with Intelligent Growth Solutions raising £5.4 million from S2G Ventures for their Edinburgh-based operations. The UK's limited arable land and Brexit-related supply chain concerns drive investor interest in domestic food production capabilities.

Singapore emerges as the Asian leader through Temasek's strategic investments and government support for food security initiatives. The city-state's 30by30 goal to produce 30% of nutritional needs locally by 2030 creates strong policy tailwinds for vertical farming investments.

Have major corporate players invested in vertical farming companies?

Corporate strategic investors have deployed over $500 million in vertical farming since 2024, with Walmart, SoftBank, and Bayer leading the charge.

Walmart participated in Plenty's $400 million Series E round to secure long-term produce supply agreements and integrate vertical farming into their grocery operations. This partnership provides Plenty with guaranteed offtake agreements while giving Walmart locally-grown produce with predictable pricing.

SoftBank Vision Fund's investments exceed $540 million across multiple rounds in Plenty, representing their largest agtech investment to date. Their involvement signals confidence in vertical farming's scalability and potential for massive returns.

Bayer partnered with Temasek to launch Unfold, a $30 million joint venture focused on developing seeds optimized for vertical farming environments. This corporate venture combines Bayer's agricultural expertise with Temasek's investment capabilities and Asian market access.

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Driscoll's strategic investment in Plenty's Series D round leverages their berry market expertise while securing innovative strawberry production capabilities. This collaboration targets premium berry markets where vertical farming's controlled environment advantages justify higher production costs.

Which startups raised the largest funding rounds in 2024 and 2025?

Plenty Unlimited secured the largest vertical farming round in history with their $400 million Series E led by One Madison Group and JS Capital in 2024.

This mega-round enables Plenty to expand their Compton facility and develop new locations across the US. The company specializes in leafy greens and strawberries using proprietary LED technology and vertical growing systems that reportedly achieve 350 times higher yields per square foot than traditional farming.

Oishii raised $134 million in Series B funding to scale their premium strawberry production, targeting high-end restaurants and luxury grocery stores. Their unique selling proposition focuses on recreating the taste and texture of Japanese Omakase strawberries that retail for $15-20 per piece.

Bowery Farming completed a $300 million Series C round in 2021 that continues supporting their expansion through 2025. They operate commercial farms serving major grocery chains including Whole Foods and Walmart, focusing on leafy greens and herbs with 24/7 production cycles.

Intelligent Growth Solutions raised £5.4 million in Series A followed by £22.5 million in Series C, demonstrating European investors' confidence in modular vertical farming solutions. Their technology enables rapid deployment of farming facilities in shipping containers and warehouse spaces.

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What deal terms and conditions are typical in vertical farming VC investments?

Vertical farming VC deals typically involve 15-25% equity stakes for Series A rounds, with investors securing board seats and technology IP protection clauses.

Liquidation preferences range from 1x to 2x non-participating preferred stock, reflecting the capital-intensive nature and longer payback periods compared to software startups. Investors often negotiate anti-dilution provisions to protect against down rounds given the sector's volatility.

Board composition usually grants investors 2-3 seats on 5-7 member boards, with experienced agtech operators and former CPG executives preferred as independent directors. SoftBank and other major investors typically secure board observer rights even in rounds they don't lead.

Technology IP ownership requires careful structuring, with investors ensuring the company owns all proprietary growing methodologies, LED configurations, and automation software. Many deals include provisions preventing key personnel from starting competing ventures for 2-3 years post-departure.

Supply agreement contingencies often accompany strategic investor participation, with companies committing to exclusive or preferred supplier relationships. Walmart's investment in Plenty includes multi-year produce purchase commitments that provide revenue visibility but limit pricing flexibility.

What role do impact investors and climate funds play?

Climate-focused funds account for approximately 30% of vertical farming investment dollars, with S2G Ventures leading this category through their $1 billion climate solutions fund.

Generate Capital provides debt and equity financing specifically for vertical farming infrastructure projects, focusing on energy-efficient facilities that reduce agricultural carbon emissions. Their project finance approach enables faster scaling without diluting founder equity as heavily as traditional VC rounds.

Breakthrough Energy Ventures, backed by Bill Gates and other climate philanthropists, targets vertical farming companies that can demonstrate measurable reductions in agricultural water usage and land conversion. They prefer investments in companies with clear paths to replacing traditional greenhouse production.

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ESG-mandated institutional investors increasingly allocate capital to vertical farming through specialized funds like Finistere Ventures' $200 million fund focused on sustainable agriculture technologies. These investors accept longer return timelines in exchange for measurable environmental impact metrics.

What's the total global investment in vertical farming for 2024-2025?

Global vertical farming investment reached approximately $800 million in 2024, down from the $1.2 billion peak in 2021 but stabilizing around sustainable growth levels.

The 2025 investment pace suggests annual funding will reach $900 million to $1 billion, with larger average deal sizes offsetting fewer total transactions. This reflects market maturation and investor focus on proven business models rather than early-stage experimentation.

Compared to 2021-2023, when speculative investments drove inflated valuations, current funding levels represent more sustainable growth aligned with commercial adoption timelines. The three-year cumulative investment from 2022-2024 totaled $2.8 billion across approximately 150 deals globally.

Geographic distribution shows US investments comprising $560 million (70%) of 2024 funding, European investments at $160 million (20%), and Asia-Pacific at $80 million (10%). These proportions remain consistent with historical patterns since 2020.

Deal size evolution indicates Series A rounds averaging $25 million in 2024 versus $18 million in 2022, while Series B rounds average $75 million versus $55 million previously. This trend reflects higher capital requirements for commercial-scale facilities and increased investor confidence in proven business models.

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Which accelerators and incubators focus on vertical farming startups?

AgFunder operates the most prominent vertical farming accelerator program, having graduated over 40 companies since 2020 with collective valuations exceeding $500 million.

Y Combinator has backed several vertical farming startups including Iron Ox (robotic farming) and Freight Farms (shipping container farms), providing $250,000 initial funding plus access to their extensive alumni network and Silicon Valley connections.

Plug and Play Agriculture accelerator in California focuses specifically on agtech startups, with vertical farming companies representing approximately 25% of their portfolio. Their corporate partners include John Deere, Bayer, and major grocery chains seeking innovative suppliers.

SOSV's IndieBio program targets life sciences applications in agriculture, including several vertical farming companies developing proprietary genetics and biocontrol solutions. Their 4-month program provides $250,000 funding plus laboratory space and scientific expertise.

European programs include EIT Food's accelerator network across multiple countries, which has supported companies like Intelligent Growth Solutions through their early development phases. These programs focus particularly on sustainability metrics and EU regulatory compliance.

What trends do investors expect for vertical farming in 2026?

Investors anticipate consolidation among vertical farming companies in 2026, with stronger players acquiring distressed assets and struggling competitors at significant discounts.

Energy cost reduction through renewable integration represents the primary focus, with investors backing companies that can achieve 40-50% electricity cost reductions through solar installations and battery storage systems. Grid independence capabilities command premium valuations.

Crop diversification beyond leafy greens attracts increasing investment, particularly companies demonstrating commercial viability for strawberries, tomatoes, and eventually grains. Investors seek evidence of successful expansion beyond high-margin specialty crops.

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Automation advancement targets 80-90% reduction in labor costs through robotic harvesting and AI-driven crop management. Companies achieving full automation across planting, monitoring, and harvesting cycles will attract premium investment terms and valuations.

Geographic expansion focuses on food-insecure regions and areas with extreme weather challenges. Investors expect successful pilots in Middle Eastern and African markets to demonstrate vertical farming's global scalability beyond wealthy urban markets.

Which funded vertical farming companies have failed recently?

Plenty Unlimited filed for Chapter 11 bankruptcy in March 2025 despite raising over $540 million in VC funding, highlighting the sector's operational challenges and capital intensity.

The company's restructuring emerged from difficulties scaling beyond their Compton facility and achieving unit economics that justified their massive capital investments. High energy costs and longer-than-expected customer acquisition cycles contributed to cash flow problems despite strong investor backing.

AeroFarms suspended operations at their Newark facility in late 2024 after burning through approximately $200 million in funding over eight years. Investors cite unrealistic yield projections and failure to achieve sustainable gross margins as primary failure factors.

AppHarvest's bankruptcy in 2023, despite going public through a SPAC, demonstrated how public market scrutiny exposed fundamental profitability challenges that private investors had overlooked. The company's Kentucky facilities never achieved projected yields or cost targets.

Investor analysis reveals common failure patterns: underestimating ongoing energy costs, overestimating consumer willingness to pay premiums for vertically-farmed produce, and insufficient focus on operational efficiency versus technology innovation. These lessons inform current due diligence processes and investment criteria for 2025 deals.

Conclusion

Sources

1. Finistere Ventures - SoftBank leads $140M funding for Plenty
2. Plenty Unlimited - $400M Series E announcement
3. Business Insider - Bowery Farming $90M raise from Google
4. AgFunder News - IGS raises £5.4M Series A
5. Straits Times - Temasek $30M vertical farming investment
6. AgFunder News - Top 15 AgTech deals in 2024
7. Bloomberg - Plenty files for bankruptcy
8. AgFunder News - Oishii raises $134M Series B