Vertical Future, the Automated Vertical Farming Startup, Hits Insolvency After $13M Loss

By Agroempresario.com

Vertical Future, a UK-based startup specializing in automated vertical farming, has entered an insolvency market after posting pre-tax losses exceeding £10 million (approximately $13.2 million). The company, founded in 2016, made headlines for pioneering hands-free farming infrastructure and recently developing grow systems for space, but now faces significant financial challenges.

According to an official statement, “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.” The company has promised to update stakeholders on future developments.

From Leafy Greens to Automated Infrastructure

Vertical Future began as a grower of leafy greens in vertical farms. The startup pivoted to designing and manufacturing vertical farming infrastructure, emphasizing “hands-free automation from seed to harvest.” Over 90% of their system components were designed and built in-house, supported by DIANA, a proprietary SaaS platform that manages the growing process.

Their innovation and growth caught attention in the industry. Forward Fooding ranked Vertical Future as the “#1 Controlled Environment Agriculture (CEA) company” in its 2025 FoodTech500 list and 33rd overall. The company also received a £1.5 million ($2 million) grant from the UK Space Agency to advance their grow systems for space applications.

Funding Struggles and Sector Challenges

Despite these milestones, Vertical Future struggled to secure further funding amid a challenging capital environment for indoor agriculture startups. The company raised approximately £37 million ($49 million) from investors including SFC Capital, Pula Investments, and various angel backers. However, sustained losses have led to their current insolvency status.

Vertical Future joins a growing list of indoor agriculture companies that have faced financial difficulties recently, including InFarm (which entered administration in 2023), Freight Farms (which ceased operations in April before new ownership), Fifth Season, Bowery, and Plenty. The sector’s high capital intensity and significant energy demands contribute to these challenges.

Eduardo Clemente, investor at Grow Up Farms via Generate Capital, commented to AgFunderNews, “It’s typically fairly capital intensive and requires significant energy. To reach reasonable payback, you need high volumes produced at costs competitive with the mass market.”

Bright Spots in Vertical Farming

While some startups falter, others are expanding. US-based Oishii raised $150 million in Series B funding last year and opened a research and development center in Japan focused on indoor farming. Square Roots, specializing in container vertical farming, has also expanded to Japan, integrating indoor technology with traditional farming methods.

UK startup Grow Up Farms continues to progress, leveraging a model based on 100% renewable energy to reduce operating costs and environmental impact.