The Vertical Farming Crunch: Why Many Startups Failed Despite Bold Promises

Vertical farming raised billions but many startups failed or scaled back. AeroFarms, Plenty, Infarm all faced financial difficulties. The problem: energy costs for lighting and climate control make vertical farming 3-5x more expensive than traditional farming for most crops. The survivors are focusing on high-value crops (herbs, microgreens, berries) where premium pricing justifies the cost. The original vision (feeding cities from skyscrapers) remains unrealized.