AeroFarms to close Virginia vertical farm as funding dries up

Company Overview - AeroFarms, a US-based vertical farming company, is at risk of going out of business after its main backer decided against further investment [1][3] - The company filed a WARN notice indicating plans to close its Ringgold indoor vertical farm in Danville, resulting in the termination of 173 jobs [1] Financial Situation - In September 2023, AeroFarms exited Chapter 11 bankruptcy proceedings, having received approval for an asset purchase agreement with existing investors Grosvenor Food & AgTech and Doha Venture Capital [2] - The largest investor of AeroFarms unexpectedly withdrew any further financial investment, prompting the company to seek new funding sources [3][4] Industry Context - Vertical farming is a capital-intensive industry primarily focused on leafy greens and herbs, with many companies being early-stage start-ups that require external financing [5] - The sector has seen several operators fail, as many are not generating profits and face challenges in securing funding [5] Challenges in Vertical Farming - The complexity of vertical farming arises from the integration of multiple technological innovations, including software, agronomy, and hardware automation [6] - The approach to vertical farming has often been overly focused on technology, neglecting the multifaceted nature of the business [6]