Bowery Farming, a well-known agtech company based in New York, is facing challenges and has decided to shut down its operations. According to reports from PitchBook, internal documents and several employees have confirmed the news.
Bowery Farming was recognized for its innovative vertical farms that were capable of growing various crops such as lettuces, herbs, and berries. The company had successfully raised over $700 million in funding from notable investors like First Round Capital, General Catalyst, and GV. In fact, its latest funding round in 2021 valued the company at more than $2 billion.
Unfortunately, the agtech industry, particularly vertical farming, has proven to be quite challenging. Both AeroFarms and AppHarvest, two other players in the vertical farming space, have also faced financial difficulties. AeroFarms, despite raising over $300 million in funding, had to file for bankruptcy protection. However, in September 2023, the company successfully emerged from bankruptcy fully funded. On the other hand, AppHarvest, which raised more than $700 million and went public in 2021 at a $1 billion valuation, filed for Chapter 11 protection in 2023.
This trend in the vertical farming sector indicates the complexities and uncertainties that come with such innovative agricultural practices. While these companies have shown promise and potential, the financial challenges they have encountered highlight the need for sustainable business models and strategies in the agtech industry.
As Bowery Farming prepares to wind down its operations, it serves as a reminder of the volatile nature of the startup ecosystem, especially in cutting-edge sectors like agtech. The closure of Bowery Farming raises questions about the future of vertical farming and the long-term viability of such ventures in the agricultural landscape.
TechCrunch has reached out to Bowery Farming for more details on the situation, and further updates on the company’s closure are awaited.
