Agritech firm Vertical Future put up for sale on insolvency marketplace after losses widen
One of Britain’s biggest vertical farming businesses has been put up for sale on an insolvency marketplace after reporting widening losses, City PM can reveal.
London-based Vertical Future, which has raised more than £37m in capital since it was founded in 2016, saw its losses surpass £10m in 2024 after turnover tumbled from £6.7m to just £692,000.
Vertical Future had hoped to raise as much as £60m in a fresh funding round in 2023 to help grow the business, according to the Standard. But now, the firm is seeking a quick sale to stave off collapse, claiming it “needs to scale in order for the unit economics of its systems and data science to have the greatest impact.”
The company began operations in 2016 with the construction of a small vertical farm in Deptford, South London to grow ‘minicrops’ such as herbs. It has since expanded to develop its own hardware and software solutions.
The firm last completed a £21m Series A funding round in early 2022, the largest of its kind for a vertical farming business, which valued it at £100m. It currently has 32 employees according to the insolvency advertisement.
Vertical farming market under pressure
The sale comes following a fleet of vertical farming collapses with firms struggling to turn a profit amid competition from low-margin, heavily-subsidised traditional farms.
In May, the Jones Food Company, which had been behind the UK’s biggest vertical farm, plunged into administration after failing to find new investors, while US-based Aerofarms filed for bankruptcy in 2023. French rival Agricool also went into receivership that year, while Infarm closed its operations in Europe, leading to 500 staff redundancies.
Vertical Future CEO Jamie Burrows previously insisted his business was not headed in the same direction.
“A lot of the bigger [vertical farming] companies that raised ridiculous sums of money were going to encounter difficulties because they didn’t really have the right approach to technology…they tried to scale too quickly with the wrong tech,” he told the Standard in 2023.
“[But] It’s a really interesting time for us, with some really big projects. We’re in very good cash position, we’re a very different business and we manufacture most of our own systems.”
In a statement shared with City PM Vertical Future said: “Vertical Future can confirm that it has engaged advisors to explore strategic options for the business, including a potential sale.
“Like others in the vertical farming sector, we have faced significant headwinds in a difficult capital environment.
“The board continues to work hard to support customers and partners while considering the best path forward. We will update stakeholders in due course.”