April 18, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Jackson Hole, Wyoming-based Vertical Harvest has closed on $8.35 million raised through a Series A to support a new model of civic infrastructure that involved the construction of vertical indoor farms co-located with affordable housing that will create jobs for the underemployed. 

This funding round was an international affair, being led by Swedish food innovation-focused venture capital fund Nicoya AB; and including Toronto, Canada-based Raiven Capital, plant-based food pioneer and founder of Oatly, Björn Öste; and Mike Krupka, partner, Bain Capital Partners.

Under the terms of the funding, Björn Öste, Paul Dugsin, co-founder and general partner of Raiven Capital, and Christopher Slim, the CEO of Nicoya, will be joining the Vertical Harvest Board, along with Vertical Harvest CEO Nona Yehia and Gingee Prince, chief impact officer of Enhanced Capital.

Using food as a medium for meaningful change, Vertical Harvest is a hydroponic, vertical farming company that not only is dedicated to the sustainable production of healthy foods, but also operates an inclusive employment model.

Driving its mission to energize local food economies, Vertical Harvests’ farms are designed for accessibility and are staffed through hiring systems developed for people with disabilities. Along the way, the company partners with civic leaders and local developers to co-locate its farms with affordable housing developments, bolstering local green energy initiatives, re-connecting people with local fresh, flavorful foods, and keeping money in-community.

“We are changing the world by focusing on creating beautiful buildings in urban environments that provide community renewal, jobs and life training for people who are employment-challenged and nutritious food that is local, fresh and better tasting,” said Nona Yehia, CEO and co-founder, Vertical Harvest. “We will do this all while generating good returns for our shareholders.”

By co-locating its farms near affordable housing, parking, and retail and community spaces, Vertical Harvest stated that its competitive advantage lies with its Grow Well model, a customized employment program for people with intellectual and/or physical disabilities that removes barriers, changes lives, and fosters independence in alignment with the priorities of civic leaders in the U.S. and abroad.

Commenting on this unique public/private model, Öste said, “I am truly excited about the opportunity to build a great company that will not only be a large, highly profitable enterprise but one that will also change the way people think about food and jobs for the underserved in urban settings.”

The startup’s first farm is a state-of-the-art, three-story hydroponic operation located in Jackson Hole, Wyoming, and the company plans to break ground on a second location in Westbrook, Maine, in the Spring of 2022.

“Vertical hydroponic farming in urban areas will revolutionize the farming industry in the coming decades,” said Christopher Slim, CEO, Nicoya “Nona and Vertical Harvest will play an important part in this transformation.”

Alongside the company’s social mission, Vertical Harvest ensures each farm is a scalable CEA (Controlled Environment Agriculture) operation that can multiply productivity on very small urban parcels of land using 85 percent less water compared to traditional agriculture – all while being protected from weather variables and pests. 

“Vertical Harvest’s business plan and social impact were already worthy of investment,” said Paul Dugsin, general partner, Raiven Capital. “We are inspired by the team, as well as impressed with the R+D efforts that set the company apart in the controlled environment agtech space. The use of AI to optimize decision making — seed to sale — are value-enhancing.”

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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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