January 25, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

London-based controlled environment agriculture (CEA) technology and research startup Vertical Future has raised what is being acknowledged as the largest round to be closed in the European CEA industry. 

Pula Investments, environmentalist Gregory Nasmyth, Dyfan Investment, SFC Capital (the second-largest shareholder in the company), Nickleby Capital (representing certain UHNW family office), and other unnamed investors participated in a  £21 (US$29 million) Series A for the startup that believes – “A Vertical Future is one where global crop production is no longer at threat, humans are healthier, and there is a better balance between population growth and the natural world.”

This round brings the company’s valuation to £100 million (US$136 million). 

Co-founded in southeast London in 2016 by Jamie Burrows, a former life sciences consultant with Ernst & Young and a Ph.D. health economist, and Marie-Alexandrine Burrows, Vertical Future began with a small vertical farm and the formation of what the company calls Minicrops – which grew and delivered fresh produce to hundreds of customers six days per week.

With a vision to eliminate food inequalities and making populations healthier, Vertical Future builds vertical farming hardware and software technologies and offers operational support and consulting services. 

“Our indoor vertical farms offer a cost-effective way to dramatically increase output and productivity per cubic metre, enhance nutrient profiles, and improve flavor; all through an approach that is completely free from pesticides,” said Jamie Burrows, CEO, Vertical Future. 

Currently, the company has six farms and a manufacturing site in the UK, and has research and business partnerships in the U.S., Italy, France, Belgium, and Singapore. Its R&D program is actively working with the University of Cambridge, Loughborough University, and NIAB conducting a range of research projects that include exploration into how vertical farming can play a role in phytopharmaceuticals, and maximizing the yields and nutritional profiles of vertically grown food crops. 

Through vertically integrating its technological and manufacturing solutions, Vertical Future can enable growers to produce specific crops at scale, which enables the company to cut its cost of equipment production.

Vertical Future CEO Jamie Burrows commented, “Unlike others in the vertical farming sector whose technologies and ambitions are restricted to growing only premium-priced salad and microgreens for a premium domestic and restaurant market, we are aiming to feed everyday working families with fairly-priced, higher-quality produce. This is achieved through a combination of technology, scale, and data insights.”

Despite having a pipeline of projects across Europe, Vertical Future is focused on stabilizing CEA food production in the UK, stating that it is engaged in advanced discussions with several major UK retailers and logistics brands with the goal of accelerating growth.

This UK market alone is valued between £6-£8 billion pounds (US$8-US$10.8 billion), according to Burrows, representing appealing potential.

In 2019, 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) at the time. 

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 launched  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.

When these deals were announced, Tim Steiner, CEO of Ocado, said, “We believe that our investments today in vertical farming will allow us to address fundamental consumer concerns on freshness and sustainability and build on new technologies that will revolutionize the way customers access fresh produce.”

And with the capital secured through this round, Vertical Future has the funds to drive its own revolution in food production by accelerating the deployment of its farms, integrate specific manufacturing capabilities, and to expand its team to more than 60 individuals by the end of Q2 2022.

– 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. 

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