A soilless growing method that suspends crops in the air with a sprinkler or misting system used to spray the exposed roots with a nutrient-rich solution.

A soilless growing method that places crops' roots directly in containers filled with nutrient-enriched water.

A soilless growing method that combines aquaculture with hydroponics. A crop's roots are placed directly in containers of nutrient-enriched water connected to fish farming tanks, allowing crops to absorb a continuous supply of nutrients from the waste produced by the fish.

Startups that produce and sell modular growing systems that can be placed within containers (e.g. small containers, shipping containers) and buildings or rooms. The containers can be located in a variety of places, such as retail stores, parking lots, and kitchens.

Bringing fresh produce closer to consumers with efficient, advanced technology.

Vertical Farming

Overview

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    Vertical farming, a key subsector of the indoor farming industry, refers to the process of growing crops in vertically stacked beds or shelves inside controlled-environment buildings or containers. The process uses artificial lights and soilless growing techniques to simulate a crop’s optimal growing environment and control the desired outcome in terms of yield, texture, size, and other characteristics.
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The US vertical farming market is estimated to reach USD 0.8 billion–1.9 billion by 2026

Market Sizing

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        US VF players including Plenty Unlimited, Bowery Farming, AeroFarms, 80 Acres Farms, and Infarm have seen demand for their products increase amidst the Covid-19 outbreak.
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        LettUs Grow has ramped up the development of two vertical farm modules so it can supply fresh produce to vulnerable communities in Bristol, England, during the pandemic.
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        Berlin-based Infarm raised USD 170 million in September 2020 to fund global expansion, as demand for its modular vertical growing system increases
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COVID19-IMPACT

Market Mapping

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  <p>
    Hydroponic farm operators account for nearly half of our list of disruptors and total funding in the range USD 1.4 - 1.6 billion.  These companies follow a soilless growing method that places crops’ roots directly in containers filled with nutrient-enriched water without the need for fish farming tanks (as in aquaponics) or air sprinklers (as in aeroponics). Due to ease of use, lower costs, and higher ROI, hydroponic farms are the most popular growing system in the vertical farming industry.
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    In contrast, less than 10% of our disruptors operate aquaponic or aeroponic growing systems to vertically produce crops. The average funding per start-up in these segments ranges between USD 35 - 60 million.
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The Disruptors

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    <b>Hydroponic farm operators are the highest funded</b>
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    Plenty Unlimited, Bowery Farming, and Infarm are the top three vertical farming (VF) players in terms of funding with a combined haul of over USD 1.4 billion. These three players are hydroponic vertical farming operators that produce similar products—primarily leafy greens, microgreens, and herbs—and compete on price, volume, location, and efficiency. 
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    Small and independent farmers and less well-funded VF startups tend to operate vertical farms in shipping containers so they can position crops near a point of sale to capitalize on freshness and reduce distribution costs. Given the high cost of purchasing a shipping container facility, often over USD 100,000 per unit, independent farmers cannot easily compete with large VF operators or easily attract mainstream consumers. 
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Disruptor Funding History

The Incumbents

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    <b>Supermarket giants show interest in on-site vertical farms&nbsp;</b>
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    The vertical farming industry has not significantly attracted the attention of large conventional vegetable producers such as Bonipak Produce, Tanimura &amp; Antle, and Duda Farm Fresh Foods. Tanimura &amp; Antle has meanwhile only developed a hydroponics greenhouse in Livingston, California to accommodate consumer demand for fresh and locally-grown foods. However, the industry is seeing large supermarket chains partnering with startups to either set up vertical farms at stores or source vertically-grown produce for their customers. For instance, Kroger, Sobeys, and Publix partnered with startups to set up on-site vertical farms and source fresh produce for consumers. Companies like McCain Foods also invested in startups to support the development of vertical farming technologies.
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Vertical Farming

Vertical Farming

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