Finance

Indoor vertical farming startup Bowery Farming raises $300 million By Reuters

3/3
© Reuters. Indoor vertical farming startup Bowery Farming in Kearny, New Jersey, U.S. shows its leafy green products that are shipped to over 800 stores, in this undated handout photo released on May 24, 2021. Bowery Farming/Handout via REUTERS

2/3

By Jane Lanhee Lee

(Reuters) – New York-based indoor vertical farming startup Bowery Farming said on Tuesday it raised $300 million in its latest funding round, valuing the company at $2.3 billion as the pandemic shed light on the importance of securing local food supply.

Vertical farming grows its produce in stacked arrangements in technologically controlled environments, reducing the need for vast expanses of land and bringing mass production right in to urban areas.

While the new industry has struggled to break even in the past, the drop in technology costs, such as LED lights, is changing the economics and fueling investor interest.

According to PitchBook data, nearly $1.9 billion of global venture capital was invested in indoor farming in 2020, nearly tripling investment in 2019. (Graphic: Global VC Funding in Indoor Farming , https://graphics.reuters.com/AGRICULTURE-INDOORFARMING/FUNDING/xegpbdgzjpq/chart.png)

Bowery’s latest funding round, led by Fidelity Management & Research Company LLC, would be the largest vertical farming deal on record, based on previous such deals listed by PitchBook.

The company’s leafy greens are sold in over 800 grocery stores and it has two commercial farms in New York and Maryland, and a third coming on line this year in Pennsylvania, said Irving Fain, Bowery’s CEO and Founder. Fain said the products are the same or lower in price than their organic rivals, but declined to say whether Bowery was selling them at a profit.

“The real benefit of what we’re growing at Bowery is first of all, it’s completely pesticide free,” said Fain, adding that a large part of the power used for the farms is renewable with an aim to eventually make it fully renewable.

He said the new funds will be used to expand farms across the United States, looking for global expansion opportunities, and developing new crops and technology to grow things like strawberries, tomatoes and carrots indoors and near consumers as well.

Bowery’s investors include GV, formerly known as Google (NASDAQ:) Ventures, General Catalyst, GGV Capital and Temasek.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button