BrightFarms Inc., located in New York City, announced the completion of a $4.3-million series-A equity-financing round. The round was led by NGEN Partners and included investments from Emil Capital Partners and BrightFarms founder Ted Caplow.
BrightFarms finances, builds and operates hydroponic greenhouse farms at supermarkets, eliminating time, distance and cost from the produce supply chain. The BrightFarms model provides supermarkets with produce that is tastier, safer and more environmentally sustainable, a company press release stated. Purchasing BrightFarms produce enables supermarkets to improve their profits while improving the planet.
The proceeds of the financing will allow BrightFarms to respond to strong demand from the supermarket industry to construct commercial greenhouses on site at supermarkets. In addition, BrightFarms will further invest in its capacity to provide its clients with a fanatical level of customer service.
"We are thrilled to be investors in BrightFarms," said Peter Grubstein, managing director of NGEN Partners. "The company will lower the costs of agriculture, transportation and water, the three major cost components of food production. They will disintermediate the supply chain and provide healthier and tastier food for the consumer."
Christian Haub, co-chief executive officer of the Tengelmann Group and chairman of Emil Capital Partners, said, "I am very excited for Emil Capital Partners to invest in BrightFarms, as we believe in the tremendous commercial potential of the company. BrightFarms' solution taps into increasing consumer demand for locally grown foods. The BrightFarms model also offers food retailers an attractive source of produce at competitive terms."
BrightFarms founder and Chairman Ted Caplow said, "I am delighted to join my partners in commercially deploying our vision of building-integrated agriculture. The upcoming BrightFarms projects at supermarkets build upon our prior rooftop greenhouses, extending the same principles that guided my original design for the Science Barge: local food production that is both high yield and ecologically sustainable."
BrightFarms Chief Executive Officer Paul Lightfoot stated, "We are fortunate to welcome world-class new investors NGEN Partners and Emil Capital Partners into the BrightFarms family. We look forward to benefiting from their work as we help improve the produce supply chain."