Indoor agriculture company Gotham Greens has raised $87 million in new equity and debt capital, according to a press release from the company. The fundraise includes Gotham Greens’ recent Series D round, which was led by Manna Tree with participation from The Silverman Group and existing investors, and brings the company’s total funding to $130 million.
Gotham Greens operates a network of high-tech greenhouses across the U.S. These controlled-environment farms use hydroponics as well as a good deal of automation software to grow leafy greens and herbs.
In today’s press release, Gotham Greens said it planned to use the new funds to expand to increase the operational capacity of its farms, develop new products, and expand to more locations around the U.S. The company currently operates its high-tech greenhouses in Brooklyn, Queens, and other areas of the country. Those locations collectively serve over 40 states, according to Gotham Greens.
The newest additions to those farming locations include facilities in Providence, Rhode Island, as well as Chicago, Denver, and Baltimore, all of which Gotham Greens opened this year. The company said that through these new locations it has doubled its capacity.
This latest fundraise comes at a time when controlled-environment ag companies are seeing more investment dollars flow their way than ever before, particularly when it comes to large-scale commercial farms like those of Gotham Greens. In August, AppHarvest raised $28 million for its own high-tech greenhouse network, news that was quickly followed by Plenty’s $140 million fundraise and BrightFarms’ $100 million Series E round.
These investment dollars aren’t too surprising when you consider the many flaws in the food supply chain highlighted by the pandemic-induced disruptions earlier this year. Demand for more locally grown food is up, and it is expected to last long after COVID-19 is under control.
At the same time, traditional agriculture’s environmental impact contributes to both climate change and global food security, according to the United Nations. Controlled-environment farms such as those of Gotham Greens, Plenty, and others are one solution to helping stave off some of the more catastrophic consequences of climate change by altering the way we produce and get our food.