Gotham Greens, an indoor farming startup, has raised $87 million in new funding to continue its expansion of high-tech greenhouses across the U.S.
The capital raise comes as the indoor agriculture space has seen a series of high-profile deals in recent months, including vertical farming giant Plenty raising $140 million in Series D financing and the purchase of AppHarvest by a SPAC that was expected to generate $475 million in proceeds.
Viraj Puri, co-founder and CEO of Gotham Greens, said the sector is well-positioned to grow amid climate-related challenges and other supply chain issues.
"Because we're in this highly-controlled environment, we're not reliant on outdoor weather conditions, so adverse rain, snow, hail, drought, things like that would not affect us being in a greenhouse," he said.
He said that the company's method of indoor farming can grow 95 percent more food on an acre of land while using water 95 percent more efficiently than outdoor agriculture. The latter is especially important as concerns mount over water scarcity worldwide.
"As water becomes a more scarce resource globally, we believe this form of farming is going to play a much more compelling role," Puri said.
The new capital will mostly support physical expansion. The company currently operates greenhouses in five states and has distribution in around 40 states. In addition to expanding operational capacity at existing facilities, diversifying channels, and launching new products, the money will support the construction of new "souped-up greenhouses," according to Puri.
Increasing the size of its physical footprint is key to Gotham Green's mission of creating a decentralized agriculture system, which Puri said can gain an advantage over traditional agriculture by growing closer to markets and shortening transportation times.
"Traditionally most fresh produce in this country is grown in a few counties in California and then has to be shipped across the country," he said. "Our concept has been to decentralize that supply chain by building high-tech, climate-controlled greenhouse facilities that enable us to grow consistent, reliable yields of fresh produce year-round."
Even with its technical advantages, indoor farming still only represents a small fraction of agricultural output. Leafy greens, for instance, are a $15 billion category in the U.S. and Canada, but currently, just about 1 percent are grown in indoor facilities.
"Really this funding is to accelerate that mission to continue to build greenhouses around the U.S.," Puri said.
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!
Emily Hosie, CEO of Rebelstork, explains the concept of Returns Recommerce, plus how her company raised $18M to address the industry-wide issue of returns.
