Vertical Farming

Discover the vertical farming industry—where innovative agriculture and sustainability merge to transform urban food production.

Sustainable future of urban agriculture

Vertical farming is poised to change the way the global population is fed. With less expensive, organic, and disease-free crops, it preserves limited natural resources. Significant, rapid market growth proves the industry’s viability and profitability in the long-term perspective. And funding forecasts cement its place in the global economic arena.

Why it matters:

With such a huge potential of vertical farming, startups will swim in the sea of opportunities for market entry and growth:

  • Innovative solutions for vertical farm designs and tech
  • Crop selection and cultivation methods
  • Data-driven optimization
  • Automation and robotics

Between the lines:

Yet, founders need to learn how to navigate the potential industry challenges such as high startup costs, customer trust, and fundraising.

At Waveup, we’re experts in the vertical farming funding race, turning startup projects into profitable ventures

$3B+
Attracted in funding
600+
Companies propelled
80+
Sectors examined

What we do:

Our expert team helps raise vital funding, crafts compelling vertical farming pitch decks, builds robust business blueprints, and identifies prime M&A options.

Go deeper:

Investigate our vertical farming market research for current trends, insights, challenges, and tips to attract investors.

6.5x growth
The vertical farming market is expected to grow six times, hitting a whopping $32.6 billion by 2032.

 

95% less
Water is used by vertical farms in contrast to traditional ones.

Powered by tech advancements and rising demand for sustainable food production
4.4x more

Vertical farms grow 4.4x more tomatoes—44,000 vs. traditional 10,000 pounds per acre.

70% less

Carbon emissions are produced by vertical farms.

390 times

Vertical farms produce 390 times more in the same space as traditional farms.

VENTURE LANDSCAPE

In 2022, vertical farming funding soared 12x since 2018

Key verticals:

  • Infrastructure and equipment
  • R&D
  • Technology integration
  • Sustainable energy solutions

Leading vertical farming investors we worked with

Write to us to know more

Vertical farming startup roadblocks

Learn how to leapfrog industry obstacles.

High startup costs:

The initial costs of starting a vertical farm are really impressive.

Stats: a vertical farm with a growing area of 1000m2 will cost over $1M.

Why it matters

High startup costs make it difficult to:

  • Compete with traditional farms
  • Scale operations and expand business
  • Weather periods of economic downturns

What it takes:

To be on track, vertical farming startups should:

  • Pitch relevant investors interested in financing vertical farms
  • Collaborate with established players to share costs
  • Focus on growing high-value crops that are more expensive in the market

Tech challenges:

Artificial lighting and climate control systems are pivotal for operating a vertical farm.

Stats: lighting makes up nearly 38% of the costs to run a vertical farm.

Why it matters

If not managed properly, it may lead to:

  • Financial instability
  • Barriers to scaling
  • Inability to compete with traditional farming

What it takes:

Fixing this problem requires a complex approach consisting of:

  • Renewable energy integration
  • Energy-efficient tech usage
  • Smart energy management
  • Government partnerships, etc

Consumer acceptance:

Many consumers have no clue about the benefits vertical farming offers. And without proper understanding, they may claim paying more while getting the same.

Why it matters:

This is what farming startups get in case of limited audience acceptance:

  • Reduced demand
  • Hurdles in surpassing competitors
  • Problems with expanding business

What it takes:

To combat customer ignorance, vertical farming startups should:

  • Ensure education initiatives to highlight the environmental benefits of this industry
  • Organize events for customers to try vertically farmed products
  • Form partnerships with restaurants and retailers to broaden product accessibility

Cash flow obstacles:

Vertical farming is a capital-intensive field. And high upfront costs can make VCs hesitant to pour money into vertical farming projects.

Why it matters:

Lack of funding may lead to:

  • Limited growth and scalability potential
  • Sales lag
  • Financial instability
  • Business failure

What it takes:

If you don’t want this to be the case, focus on:

  • Showcasing clear financial viability
  • Cooperating with industry top dogs
  • Communicating social and environmental impact

FAQs

How attractive is the industry to potential agriculture investors?

The vertical farming industry is a relatively new, fast-growing sector, and it has become highly interesting for investors.

If you are a vertical farming startup, how easy is it to raise funding today?

It has become easier for a vertical farming startup to attract vital venture capital. It’s due to the growing investor interest, industry maturing, and government support.

How long does it take to create a pitch deck and financial model for a vertical farming startup?

Our expert team usually needs two or three weeks to create an insightful and visually rich vertical farming pitch deck and a robust financial model. Yet, there can be situations when we need around a month to finish everything. Thus, it’d be better to negotiate the timeline individually.

What are the key mistakes vertical farming startups make in their pitch decks?

Most vertical farming pitch decks lack a persuasive investment storyline and a clear market decision. Plus, the absence of a robust business strategy and proof of progress. Like this, venture capitalists don’t get the full picture and may shift their focus to a more promising and urgent project.

How competitive is the vertical farming market?

The vertical farming market is becoming more saturated and competitive due to growing demand and tech advancements.

What services do you provide for investors looking to invest or already investing in vertical farming?

We help investors evaluate vertical farming investment opportunities by conducting in-depth research and presenting valuable insights in a clear, visual format. Plus, we offer comprehensive fundraising services to vertical farming ventures and related companies in our portfolio.

Do you provide vertical farming M&A support?

Sure thing! Our team provides comprehensive M&A support within the vertical farming sector and beyond. Our pack of services includes searching for the most relevant deals, assessing their value, and ensuring smooth collaboration post-deal.

Do you make intros to vertical farming VCs?

Of course! We assist you in establishing connections with the ideal vertical farming venture capitalists. Initially, we evaluate your project based on the team structure, product, and the capital you intend to raise. Then, we steer you in collaborating with the VCs, ensuring a fruitful relationship both during and after the negotiation process.

Do you have available data or research to purchase on the vertical farming market?

Absolutely! We specialize in offering customized market intelligence in the vertical farming sector. This includes detailed industry analysis, competition assessment, and thorough market studies, all crafted to offer you a competitive advantage. Leveraging reliable data sources, we empower you to fully understand the nuances, potential, and competitive aspects of the vertical farming landscape.

Which growth stage of companies have you worked with in the past?

Our core proficiency lies in helping startups from the Seed to Series B growth stages within the vertical farming industry and beyond. However, we also support businesses in Pre-Seed and Series C+ growth stages and forge ties with established companies and investment funds.

Venturing into vertical farming? You're in the right place

Leverage Waveup's unmatched expertise in fundraising, M&A advisory, and growth hacking to take your project to the next level. Share your email, and let's discuss how we can help!

Form submitted successfully.

What help do you need? Please select at least one option

Unlock in-depth insights with our comprehensive industry report!

Unrivaled coverage

Dive deep into industry research with unparalleled depth and breadth

Data-backed decisions

Equip yourself with the analysis and forecasts essential for strategic planning

Pathway to future-proof insights

Understand today’s trends and anticipate tomorrow’s shifts to ensure your business stays ahead

What you get

  • Industry benchmarks: Compare vital financial ratios to gauge business risks effectively
  • Opportunity & threat analysis: Identify and navigate the challenges and prospects inherent in the industry
  • Holistic risk assessment: View the industry from every angle, eliminating blind spots and enhancing strategic decisions
  • Geographic insights: Explore business concentration and global trade nuances to spot unique opportunities
  • Industry competitors & barriers: Recognize key players and understand the challenges new entrants face
  • Credible data presentation: Showcase industry statistics, pain points, and success factors to establish your authority
  • Actionable insights: Transform extensive research into concise, actionable insights for a comprehensive market view
  • Five-year forecasts: Visualize the industry’s growth trajectory and stay prepared for the future