Freight Farms announced the first close of its $2 million equity placement which occurred in mid November. Twelve investors subscribed to $1.2 million or 61% of the offering.
Freight Farms uses modified shipping containers for high yield crop production. Units are outfitted with advanced climate technology that creates optimal growing conditions needed to maximize the harvest. According to the company, the system delivers high quality production at a low cost of operation and uses a fraction of the energy compared to traditional and greenhouse production. Most importantly, it is designed to grow fresh food in urban centers as its installation does not require redevelopment, it can also be stacked to scale-up production without using a larger footprint. According to the Wall Street Journal, the company sells each unit for $60,000 and had revenues amounting to $500,000 since its launch in 2013. The company is currently selling the turnkey containers to grow leafy green, “Vine Veggie” and “Fresh Fungi” are in the works.
There seem to be an increasing number of companies offering solutions to feed an ever growing population of urban locavore. PodPonics which raised $100,000 last June has been developing a similar idea since 2010 and Green City Growers, a MassChallenge alumni looking to expand outside of Boston, transforms unused space such as rooftops into urban organic farms.
Freight Farms, headquartered in Boston MA, was founded in 2013 by Brad McNamara and Jonathan Friedman. The Board of directors includes Reenie McCarthy who is related with the Morningside Group a family office making private equity and venture capital investments.
Status: First close
Company: Freight Farms
Amount offered: $1,954,576
Amount placed: $1,204,576
First Sale: 11/19/13