In 2022, global agtech VC funding reached $10.6 billion—the second strongest year on record despite market volatility, rising interest rates in the US, conflicts abroad, and continued COVID-19 impacts. A sweeping industry vertical that consists of more than 8,200 companies, sub-categories within agtech include ag biotech, precision ag, animal ag, agrifinance and ecommerce, and, finally, indoor farming.
PitchBook analysts say that ongoing supply chain challenges and food security concerns are major drivers of interest in the indoor farming space. Per data from the PitchBook Platform’s Emerging Spaces feature, 2022 concluded with $2.01 billion being invested into indoor farming startups across 158 deals. Now nearly a quarter into 2023, indoor farming companies have $88.95 million across 21 deals as of March 22.
In this blog post, we’re taking a closer look at the top 7 indoor farming startups by their latest deal size between 2022 and present. Before we dive into that, we’ll take a closer look at our definition of indoor farming, indoor farming’s key growth drivers, and the three distinct types of indoor farming startups.
Note that by clicking on a company or investor’s name in the list below, you’ll be directed to a PitchBook profile preview. Our profile previews give a cursory sense of the types of robust data—from a startup’s latest deal type and amount to a VC’s investments and exits—PitchBook clients can access with their subscription.
What is indoor farming?
Indoor farming is a method of growing agricultural products indoors, including produce, medicinals, and fungi. Using advanced technologies to regulate the environment, indoor farming unfolds within enclosed facilities—where tech, not nature, control factors conducive for growing and harvesting.
Also referred to as controlled environment agriculture (CEA), indoor farming typically happens on a large scale, wherein techniques like vertical farming, hydroponics, and aeroponics are employed to maximize space and resource efficiency. By controlling factors like light, nutrients, and humidity, indoor farming manipulates plant biology to optimize for desirable plant traits. Crunchier, greener lettuce? Indoor farming can create the environment for just that. 🥗
The indoor farming ecosystem includes software, hardware, infrastructure, and operators that are focused on commercial and consumer indoor ag.
What are the benefits of indoor farming?
According to PitchBook analysts, indoor agriculture provides a variety of benefits, including:
- Reducing the reliance on imports by creating a local produce supply
- More control over growing conditions and inputs
- Increased sustainability through less (or eliminated) reliance on water, fertilizer, herbicides, pesticides, and energy
- Shorter growing cycles
What types of indoor farming startups are there?
Indoor farming components
Companies in this space are developing precision technologies to optimize the growing environment, including lighting systems, monitoring sensors, irrigation, and environmental controls, as well as the software to manage grow operations. As an example, Seattle-based iUNU has developed a comprehensive greenhouse management platform that connects plants, facilities, and people through a single interface. Among other functionalities, iUNU’s platform allows farmers to better manage crop growth cycles and identify burgeoning crop maladies before the yield is affected.
Indoor farming systems
Startups within this sub-segment of indoor farming develop complete growing environments that span small consumer table-top solutions to massive commercial facilities. Most are turnkey, allowing their customers to step in and begin operations right away. New York’s Farmshelf, for example, is the developer of an automated hydroponic farm system designed to enable farm-grown produce at home or in restaurants.
Indoor growers
Indoor growing companies operate indoor farming facilities. Many growers build out proprietary components and systems to reduce costs and increase yields. Pure Harvest Smart Farms in Abu Dhabi produces genetically modified crops grown in modern glasshouses using a proprietary, semi-closed, climate-controlled growing system that automatically adjusts temperature, moisture, and more.
Top 7 indoor farming startups by latest deal size (2022-present)
*According to PitchBook data as of March 22, 2023; data is subject to change frequently
Plenty
- Latest deal: $400M, later-stage VC, Series E
- Latest deal date: January 2022
- Total raised to date: $941M
Headquartered in San Francisco, Plenty operates indoor vertical farms on a mission to bring fresh, clean produce to the people. The startup’s greens—including baby arugula, crispy lettuce, baby kale, and mizuna mix—are vertically farmed with no pesticides. Available through services like Instacart and good eggs, they come in a resealable pack and don’t need to be washed prior to consumption.
The company’s $400 million Series E venture funding round in January 2022 was led by One Madison Group and JS Capital Management, putting its pre-money valuation at $1.03 billion. Walmart, SoftBank Investment Advisers, Jeff Bezos, and five others also participated in the round.
Gotham Greens
- Latest deal: $310M, later-stage VC, Series E1
- Latest deal date: September 2022
- Total raised to date: $439.8M
Based in New York City, Gotham Greens produces greenhouse-grown veggies and herbs to provide a year-round, local supply of pesticide-free produce. The startup, founded in 2009, offers a range of leafy vegetables and herbs grown using integrated pest-management techniques, including biological controls wherein beneficial insects are used to prey on harmful pests.
Gotham Greens’ $310 million Series E1 venture funding round in September 2022 was led by Ares Management and BMO Capital Markets, putting its pre-money valuation at $670 million. The Silverman Group, Manna Tree Partners, and three others also participated.
Fluence Bioengineering
- Latest deal: $272M, M&A
- Latest deal date: May 2022
- Post valuation: $272M
Founded in 2013, Fluence Bioengineering is an Austin-based manufacturer of lighting solution products for commercial indoor farming operations. The company’s products provide environmentally and economically viable solutions to increase crop production while reducing the environmental impact, facilitating vertical farming, and offering light uniformity and canopy penetration.
Fluence Bioengineering, a subsidiary of Osram Licht, was acquired by The Netherland’s Signify for $272 million in May 2022.
GrowUp
- Latest deal: $135.2M, later-stage VC, Series A
- Latest deal date: February 2022
- Total raised to date: $144.4M
Headquartered in London, GrowUp operates year-round, controlled environment farms that produce restaurant-quality salads and bring down the cost of production. The company’s vertical farms are resilient to climate change and use on-site renewable energy, lightening their environmental footprint and creating a more resilient supply chain.
The British upstart’s $135.2 million Series A venture funding round in February 2022 was led by Generate. Other undisclosed investors also participated. Prior to their Series A round, GrowUp had raised capital through several accelerators and grants, crowdfunding campaigns, and angel investors before being acquired in 2019.
GoodLeaf Farms
- Latest deal: $111.83M, secondary—private
- Latest deal date: December 2022
- Total raised to date: $57.5M
GoodLeaf Farms, based in Guelph, Ontario in Canada, is the developer of a vertical farming technology that produces fresh leafy greens all year long. Founded in 2015, the company’s products include a spicy mustard medley, pea shoots, micro broccoli, and micro arugula.
TruLeaf, GoodLeaf Farms’ parent company, sold a stake in GoodLeaf to Toronto’s McCain Foods and LIOS Partners for $11.83 million in December 2022.
Absolute
- Latest deal: $100.4M, later-stage VC, Series B
- Latest deal date: May 2022
- Total raised to date: $116.3M
New Delhi-based Absolute operates large-scale indoor and semi-indoor vertical farms that cultivate fruits and veggies. The company leverages AI, data science, and IoT to enable farmers to grow crops without using synthetic enzymes or genetically modified organisms.
Absolute’s $100.4 million Series B venture funding round in May 2022 was led by Surge, an accelerator program of Sequoia Capital India based in Singapore, with Alpha Wave Global, Tiger Global Management, Sequoia Capital India, and Sequoia Capital Southeast Asia also participating.
Protix
- Latest deal: $56.7M, PE growth/expansion
- Latest deal date: February 2022
- Total raised to date: $126.2M
Dongen, Netherlands-based Protix produces insect proteins and lipids to feed animals and accelerate the transition to a food system in balance with nature. The company’s industrial-scale, high-quality insect proteins are a low-impact protein alternative that can be cultivated on a variety of food scraps, including meat, fish, and dairy products, serving as an insect protein for animal feed.
Founded in 2009, Protix’ $56.7 million PE growth/expansion round in February 2022 came from Good Investors, Aqua-Spark, Rabo Investments, and five others.
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