December 9, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

Houston-based vertical farming pioneer Dream Harvest Farming Company announced it has closed on $50 million in funding from Orion Energy Partners to be used to construct a state-of-the-art, wind energy-powered, 100,000-square foot indoor growing facility. 

Founded in 2015, Dream Harvest leverages an innovative approach to vertical farming using expertise in plant science, hydroponics, and bioengineering to sustainability achieve yields that are 400 times greater than outdoor agriculture.

“Our fundamental mission is to sustainably produce farmed foods that are consumed – not wasted – through centralized production, local distribution and a creative approach that resonates with today’s health-conscious consumers,” said Zain Shauk, co-founder and CEO, Dream Harvest.

Using only five percent of the water typically used in conventional crop production, and absolutely no pesticides (not even organic versions), the company has rapidly grown to have a presence in a number of grocery stores and restaurants across the U.S. south, including every Whole Foods store across four states.

As a “science first” farming company with a successful business model and attractive unit economics supported by a multi-year record of consistently increasing yields, Dream Harvest specialises in a variety of herbs, baby greens, kale, and other lettuce varieties, all sold under the Dream Harvest Farming Company brand. 

“Demand for our produce has far outpaced supply, an encouraging validation of our approach as well as positive news for our planet, which is facing the rising problem of food and resource waste,” said Shauk. “While we have the yields today to support our business, we are pleased to partner with Orion on this financing, which will enable us to greatly expand our production and increase access to our produce for many more consumers.”

Dream Harvest now holds proprietary formulas for managing more than 100 produce varieties throughout the growth cycle, along with extensive controls and procedures to guarantee food safety and quality. The company is also pursuing ongoing experimentation with approximately 20 additional produce varieties, and expects to expand distribution to more than 250 retail locations in 2022.

The funds gained through this investment will be allocated by the company to scale production in order to meet the significant demand being faced. To do this, Dream Harvest is planning the construction of a 100,000-square -foot indoor farming facility that will utilize state-of-the-art wind energy to grow produce that stays fresh on the shelf more than two weeks longer than its traditionally grown counterparts.

“We are very excited for our capital partnership with Dream Harvest to fund the next phase of their infrastructure buildout in support of the company’s well-established and innovative approach to vertical farming,” said Nazar Massouh, CEO and co-managing partner, Orion.

Orion, with offices in New York and Houston and more than $2.6 billion in AUM amassed since its founding in 2015, leverages a unique partnership approach summed up as – for entrepreneurs, by entrepreneurs – across creative credit, equity and growth capital solutions for middle market businesses to scale and deploy sustainable infrastructure. The group’s targeted sectors include energy efficiency, digital infrastructure, transportation and agriculture, social infrastructure, sustainable power generation, renewable fuels, waste and recycling, and water.  

Commenting on the investment, Massouh said, “Orion’s focus on sustainable infrastructure and deep experience in building large industrial facilities will be complementary to Dream Harvest’s impressive track record of being a reliable supplier to high caliber customers by achieving consistent yields, food safety, and operational efficiencies over the last five years. On behalf of the entire Orion team, I would like to thank Zain and his colleagues for selecting Orion to be their capital partner.”

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.