What are the best vertical farming startups?

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Vertical farming has reached a critical inflection point in 2025, with the sector consolidating around proven players who combine robust automation, strategic partnerships, and sustainable unit economics.

The industry attracted $582.5 million in VC funding during 2024, recovering from the 2023 downturn, and is projected to reach nearly $1 billion in funding by end of 2025. Major players like 80 Acres Farms, Oishii, and Eden Green Technology are scaling operations while breakthrough technologies in robotics, genetics, and modular systems promise to reshape the competitive landscape in 2026.

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Which vertical farming startups lead globally in 2025, and what sets them apart?

Eight companies dominate the global vertical farming landscape, each with distinct competitive advantages that have attracted substantial institutional capital and strategic partnerships.

80 Acres Farms leads in commercial-scale operations with $115 million in total funding and a strategic focus on large-format facilities. The company doubled its production capacity in 2025 by acquiring three new facilities across Georgia, Texas, and Colorado, plus absorbing Kalera's intellectual property and assets during that company's restructuring.

Oishii has carved out the premium indoor berry segment with $150 million in Series B funding raised in November 2024. Their Japanese horticulture techniques produce strawberries that retail for $50+ per pound, targeting high-end restaurants and specialty grocers. The company's differentiation lies in recreating specific Japanese cultivars that cannot be grown outdoors in North America.

Eden Green Technology raised the largest single growth round at $300 million in 2024, focusing on hybrid greenhouse-vertical systems that combine the cost advantages of greenhouse growing with the space efficiency of vertical farms. Their model targets B2B retail customers and institutional food service.

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Intelligent Growth Solutions (IGS) from the UK has secured over £50 million in 2024-2025 funding for their modular "farm-in-a-box" approach. Their systems integrate robotics and sensors into standardized towers that can be deployed rapidly across different facilities, making them attractive to franchise-style expansion models.

Which startups raised the most capital in 2024-2025, and who were the lead investors?

The largest individual funding commitment was the Planet Farms-Swiss Life joint venture worth €200 million announced in April 2025, followed by Eden Green's $300 million growth round and Oishii's $150 million Series B.

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Which startups have backing from major agriculture, tech, or retail corporations?

Strategic corporate partnerships have become crucial differentiators, providing both capital and market access that pure venture funding cannot offer.

Google Ventures led Bowery Farming's $90 million Series B, bringing both capital and potential integration with Google's AI and cloud infrastructure capabilities. This partnership positions Bowery to leverage advanced machine learning for crop optimization and predictive analytics.

Bayer and Temasek created a $30 million joint venture called Unfold, specifically focused on developing crop genetics optimized for controlled environment agriculture. This represents the first major seed company investment in CEA-specific germplasm development, potentially solving one of the industry's core challenges around crop varieties designed for indoor growing.

Walmart maintains an equity stake and supply chain integration with Plenty Unlimited, though specific investment amounts remain undisclosed. This partnership provides Plenty with guaranteed offtake agreements and insights into retail demand patterns.

Driscoll's has formed a strategic berry market partnership with Oishii, leveraging the global berry leader's distribution network and market knowledge while maintaining Oishii's premium positioning. Amazon notably has no major disclosed equity stakes in vertical farming startups, despite speculation about potential investments.

How much total investment flowed into vertical farming in 2024-2025, and what's the 2026 forecast?

Total venture capital funding reached $582.5 million in 2024, representing a significant recovery from the 2023 downturn when many agtech sectors saw reduced investment activity.

First-half 2025 deals, including the Planet Farms joint venture, Zordi's Series B, and continued investment in established players, suggest year-end funding will reach $900 million to $1 billion. This represents selective investment focused on proven business models rather than the broader experimental funding of earlier years.

Market research projects the overall vertical farming market size (including both capital expenditures and operational expenses) to grow from approximately $6.2 billion in 2025 to $13.7 billion by 2029, representing a compound annual growth rate of 19.7%. This broader market growth supports continued VC funding levels of $1 billion+ annually through 2026 as successful companies scale operations and new entrants focus on specialized niches.

The funding concentration reflects market maturation, with investors prioritizing companies demonstrating unit economics, operational efficiency, and clear paths to profitability over pure growth metrics.

Which companies achieved the biggest R&D breakthroughs in 2025, and what innovations will reshape 2026?

Three breakthrough categories emerged in 2025: robotics foundation models, no-hands modular systems, and crop genetics specifically designed for controlled environments.

Zordi developed an AI-driven berry-harvesting platform that uses computer vision and robotic manipulation to autonomously harvest delicate fruits without damage. Their Series B funding from Khosla Ventures specifically targets scaling this technology across multiple crop types, potentially reducing labor costs by 60-70% for harvesting operations.

Avisomo's container-scale hydroponic systems achieved true hands-free operation with remote monitoring capabilities. Their €5 million Pre-Series A funding, backed by Innovation Norway, focuses on deploying these systems in harsh climates where traditional agriculture faces significant challenges.

The Unfold joint venture between Bayer and Temasek represents the most significant advancement in crop genetics, developing the first commercial seed varieties specifically bred for indoor growing conditions. These varieties optimize for factors like compact growth, consistent flavor profiles, and compatibility with LED light spectrums.

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Expected 2026 impact includes autonomous harvesting systems increasing per-square-foot yields by 2x-3x, plug-and-play modular farms reducing deployment time from months to weeks, and tailored seed lines lowering operational costs by approximately 30% through optimized resource utilization.

Which startups received awards, grants, or formal recognition for sustainability and innovation?

Government recognition and grant funding have become important validation mechanisms, particularly for startups targeting sustainability metrics and food security objectives.

USDA Urban Agriculture Grants provided multi-million-dollar awards to several controlled environment agriculture innovators, though specific recipient details remain proprietary. These grants typically focus on projects demonstrating measurable improvements in water usage, energy efficiency, and local food access.

EU Horizon Europe funding supported R&D collaborations involving IGS and AeroFarms, specifically targeting automation technologies and energy optimization. These grants often require partnerships between startups and academic institutions, accelerating technology transfer.

Innovation Norway provided €1.6 million in grant funding plus additional equity investment for Avisomo's Pre-Series A round. This combination of grant and equity funding reflects government priorities around climate adaptation and food security in Nordic regions.

Singapore's 30x30 Express Grants supported Unfold and other local hydroponic ventures as part of the nation's goal to produce 30% of nutritional needs locally by 2030. These grants typically focus on tropical crop varieties and high-humidity growing conditions.

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What are the most promising emerging companies that launched in 2024-2025?

New market entrants are focusing on specialized niches rather than competing directly with established leafy greens and herb producers.

Which startups show clear signs of successful scaling through facilities, expansion, or major clients?

Scaling indicators in 2025 focus on facility acquisition, geographic expansion, and securing institutional supply contracts rather than just raising capital.

80 Acres Farms demonstrated the most aggressive scaling by acquiring three new facilities across Georgia, Texas, and Colorado, effectively doubling their production capacity. The company also absorbed Kalera's intellectual property and customer contracts during Kalera's 2025 restructuring, creating immediate economies of scale.

Infarm expanded their distributed micro-farm network across 40+ countries through supermarket partnerships. Their model places small growing units directly in retail locations, reducing transportation costs and providing ultra-fresh produce. This scaling approach requires less capital per unit but demands sophisticated logistics and maintenance networks.

Eden Green launched their second US regional facility and signed multiple institutional supply deals with food service companies. Their hybrid greenhouse-vertical model allows faster scaling than pure vertical farms because of lower per-square-foot construction costs.

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Plenty Unlimited established a $680 million joint venture with UAE's Mawarid Holdings to build vertical farms in the Gulf region, representing one of the largest international expansion commitments in the sector's history.

What are the primary geographic innovation hubs for vertical farming in 2025?

North America continues to dominate with approximately 70% of global venture capital funding in 2024, concentrated in specific regional clusters that provide ecosystem advantages.

California leads US innovation with companies like Plenty and Iron Ox benefiting from proximity to Silicon Valley's AI and robotics expertise plus access to high-value crop markets. New Jersey has emerged as the East Coast hub, hosting Oishii and the restarted AeroFarms operations, with advantages including proximity to major population centers and relatively affordable industrial real estate.

Europe captures roughly 20% of global funding, with the UK leading through companies like IGS that benefit from strong government support for agricultural innovation. Germany maintains significance through Infarm's distributed model, while Sweden hosts SweGreen and benefits from expertise in energy-efficient systems and cold climate agriculture.

Asia-Pacific represents approximately 10% of funding but shows rapid growth, particularly in Singapore where government initiatives support companies like Unfold. Japan provides unique expertise in precision horticulture that companies like Oishii leverage for premium crop development.

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Which technologies define the most advanced startups, and who leads each category?

Five core technology categories separate industry leaders from followers, with different companies achieving dominance in specific areas.

Are there signs of industry consolidation through M&A, mergers, or strategic partnerships?

The vertical farming sector experienced significant consolidation activity in 2024-2025, driven by financial pressures on weaker players and strategic positioning by market leaders.

The most significant M&A transaction was 80 Acres Farms' acquisition of Kalera's intellectual property and facility assets in 2025. Kalera, once valued at over $400 million, faced financial difficulties that forced asset sales. 80 Acres gained access to Kalera's proprietary growing systems, customer contracts, and facility infrastructure at a significant discount to replacement cost.

Strategic joint ventures emerged as an alternative to pure acquisitions. The Planet Farms-Swiss Life €200 million partnership combines agricultural expertise with real estate infrastructure management. Similarly, Plenty's $680 million joint venture with UAE's Mawarid Holdings provides access to Middle Eastern markets while sharing development costs and risks.

Partnership activity accelerated through Infarm's supermarket integration agreements and the Bayer/Temasek Unfold seed development joint venture. These partnerships allow companies to access complementary capabilities without dilutive equity transactions.

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Industry observers expect continued consolidation in 2026 as companies with proven unit economics acquire distressed assets and weaker players face funding difficulties in a more selective investment environment.

Which startups offer the strongest exit opportunities for investors?

Exit opportunities vary significantly by company maturity, with different pathways emerging for established players versus high-growth startups.

AeroFarms has discussed potential IPO plans following their post-bankruptcy restructuring and $4.98 million seed funding restart. Their renewed focus on profitable operations and streamlined cost structure could support a 2026 public listing, though market conditions will determine timing.

Strategic acquisitions represent the most likely near-term exits, as evidenced by 80 Acres' purchase of Kalera assets. Companies with proven technology platforms and strong intellectual property portfolios attract interest from larger agricultural corporations, food companies, and real estate investors seeking exposure to controlled environment agriculture.

Revenue-based exits through rapid growth characterize companies like Plenty and Bowery, both projected to exceed $200 million in annual revenues by 2025. These companies may pursue later-stage private equity transactions or strategic sales to major food retailers looking to vertically integrate their fresh produce supply chains.

The strongest exit candidates combine demonstrated unit economics, scalable technology platforms, and strategic partnerships that provide multiple exit pathways. Investors should prioritize companies with clear paths to profitability and defensible competitive advantages rather than pure growth metrics.

Conclusion

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