New York-based farming startup BrightFarms has raised $30.1m Series C funding to expand its presence in the US by introducing more commercial-scale fresh, healthy, local and sustainable produce.
The funding is led by equity firm Catalyst Investors and joined by existing investors WP Global Partners and NGEN Partners.
BrightFarms Chief Executive Officer Paul Lightfoot said: “Having the backing of Catalyst Investors further validates BrightFarms' innovative solution for providing consumers with fresh, local, sustainable produce at a commercial scale.
“This investment will enable us to dramatically expand our markets and provide more Americans with fresh, delicious, locally grown produce on a year-round basis.”
The startup currently offers baby greens and tomatoes at leading retailers such as Mariano's (Kroger), Giant Food (Ahold USA), Wegmans and ShopRite, from local greenhouses near Chicago, Washington DC, and Philadelphia.
It finances, builds, and operates local greenhouse farms in partnership with supermarkets, cities, capital sources, and vendors.
BrightFarms said that its greenhouses use 80% less water, 90% less land and 95% less shipping fuel than traditional suppliers.
The firm claims its produce to be pesticide-free and non-GMO.
Catalyst Investors partner and research director Tyler Newton said: “Produce grown in controlled environments will be a key part of the sustainable food chain of the future, requiring less land, water, energy and time for transportation than traditional agriculture. We look forward to helping BrightFarms lead the way."
BTIG was the sole placement agent on the transaction.
In August last year, BrightFarms broke ground on its Chicagoland Greenhouse in Rochelle, Illinois. The project was a partnership with Roundy's Supermarkets.