Vertical Future Raises $5M in Funding, Plans Two Vertical Farming Sites in London

November 6, 2019

By Lynda Kiernan

This year the UK has been the center of more indoor and vertical farming projects that have been securing increasingly high-profile rounds earning larger capital commitments.

London-based food tech company Vertical Future announced it has raised US$5 million in initial funding led by impact investor Earthworm Capital, and supported by corporate finance advisor Acceleris Capital, Amberley Advisory, and Gateley.

“We are elated to announce our raise today and further our mission to change the future of our cities across the UK – starting in London,” said Jamie Burrows, founder and CEO, Vertical Future.

Founded in 2016 on the central theme of “health economics – resource scarcity”, and with a long-term goal of better urban health, Vertical Future uses a combination of LED lighting, software, and sensors to create a high degree of precision and control to ethically and sustainably produce micro-greens and micro-veggies.

After years operating at a proof-of-concept level, Vertical Future is now ready to advance its 10-year growth strategy – to achieve a 25-fold increase in crop output capacity through the addition of two new “Ethical Plant Factories” to be located in London Fields and Mayfair – in addition to the company’s existing site in Deptford.

“This is our first major move in this sector, building on three years of hard work and proof of concept,” said Lord Nigel Crisp, former head of the NHS and non-executive board member, Vertical Future. “Sustainable food will be one of society’s biggest challenges in future years and we are at the forefront of the effort for better, long-lasting solutions.”

This increase in capacity will be paired with a team expansion, including roles dedicated to the in-house development of growing technologies, robotics, and process management. It also will enable a 10-fold increase, from 100 to more than 1,000, in B2B restaurant and food brand customers which already include Tom’s Kitchen, Mindful Chef, Chop’d, Kaleido, Lahpet, and Quaglino’s.

“We are delighted to complete this transaction with Jamie and the team at Vertical Future,” said Simon Thorn, CEO, Acceleris. “We believe that we have secured an excellent investment partner in Earthworm and we look forward to supporting the Company’s growth over the coming years. The team have attracted an impressive customer base so far and we see plenty of areas for growth.”

Britannia

The announcement of Vertical Farming’s funding and project plans follow a couple of major UK investments in the space of vertical farming and protected agriculture in recent months.

In June of this year, Britain’s Ocado, the world’s largest online grocery retailer, made its first venture into vertical farming with a pair of agreements representing a total investment of £17 million (US$22 million).

Together with the Netherlands-based Priva Holding BV, a leading horticulture-focused provider of technology solutions, services, and automation systems, and U.S.-based 80 Acres Farms, a top indoor vertical farming company operating multiple farms producing tomatoes, cucumbers, peppers, leafy greens, and fruits such as strawberries, Ocado is launching Infinite Acres, a provider of integrated tech solutions for the indoor vertical production of the highest quality produce on a year-round basis.

Ocado also announced its acquisition of a 58 percent stake in UK-based Jones Food Company (JFC), the largest operating vertical farm in Europe.

Located in an industrial park in Scunthorpe, England, JFC’s facility hydroponically produces 10 varieties of leafy green herbs including coriander, basil, dill, chives, and mint.

More recently, in early October Greencoat Capital announced a groundbreaking $148 million low-carbon and sustainable greenhouse project in the UK that is being funded by a collection of major UK pension funds.

Located on farmland in Trowse in Norwich, and Ingham in Suffolk, the greenhouses, which were developed by Oasthouse Ventures, will be warmed by residual heat captured from nearby water recycling facilities owned by Anglian Water.

Closed loop heat pumps (the largest ever deployed in the UK) will be powered by a new Combined Heat and Power (CHP) with waste heat from the CHP further heating the greenhouses. The CO2 generated by the CHP will then be transferred to the greenhouses to further accelerate plant growth, and will recapture a significant proportion of the carbon.

Britain consumes 500,000 tons of tomatoes per year, however, only 20 percent of this amount is produced domestically. The investments being made in this project will enable these two greenhouses to produce 20 tons of tomatoes per day, or 12 percent of the tomatoes grown in the UK.

For Vertical Future, its business will adhere to “hyper local” food production, meaning that its vertical farms will supply a much smaller and more concentrated urban area, instead of a nationwide distribution model.

“FoodTech can improve the sustainability of our food by transforming the way it is produced, increasing health-benefits and decreasing our carbon ‘foodprint’, and nowhere is this more essential than in urban areas,” said Burrows.

“Vertical farming offers huge potential in solving one of the biggest issues of our time – how to feed a growing population sustainably,” said Ben Prior, CEO, Earthworm. “We are really impressed with Jamie’s vision and work ethic, and the team at Vertical Future has a very special business poised for growth.”

 

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.

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