There’s a new startup in the vertical farming world founded on an unprecedented premise and backed by a giant corporation with deep pockets. Leaps by Bayer, the impact investment arm of Bayer AG and Temasek, a global investment company, announced the joint investment and formation of a new vertical farming company named Unfold.
While most people associate Bayer with pharmaceuticals and consumer health, the mega-corporation is as equally committed to crop sciences—with an emphasis on the science. For example, most startups in the vertical farming market are focused on the development of more efficient infrastructure. But Unfold, backed by the scientific expertise of Bayer AG, is looking to unlock the genetic potential of this unique indoor environment. The startup already has an agreement in place for rights to germplasm from Bayer’s extensive vegetable portfolio.
Unfold seeks to elevate the vertical farming industry through two main goals: 1) use world-class genetics to develop new fruit and vegetable seed varieties that will dramatically advance productivity, flavor and other consumer preferences, and 2) provide agronomic and market development advice to the industry and consumers, as well as participate in value sharing with its customers.
“Our unparalleled investment in seed and crop growth models best suited for vertical farming environments sets Unfold apart in an area that is currently unserved,” reads the startup’s website. “We have the knowledge and ability to re-imagine the entire growing and eating experience.”
Indoor vertical farming, which relies on artificial light to grow food in challenging environments, can improving yield for select fruits and vegetables, such as leafy greens, tomatoes, peppers, cucumbers and specialty crops. It also conserves natural resources, like water and land while reducing the cost and impact of transportation and packaging. Additionally, and perhaps most importantly, vertical farming can increase food security for a growing population, something that is especially important in areas without farmland and in times of crisis, such as the COVID-19 pandemic.
In recent years, the market for vertical farming has significantly increased. According to a market report from Fortune Business Insights, the global vertical farming market is expected to reach $12 billion by 2026, exhibiting a compound annual growth rate of 25% from the $2 billion the market brought in in 2018. While experts are still crunching the numbers to see how COVID-19 will affect this estimation, the fact that vertical farming can play a positive role during the pandemic gives it a step up.
Unfold raised $30 million in its initial funding round and entered into an agreement for certain rights to germplasm from Bayer’s portfolio. John Purcell was tapped to lead Unfold as the CEO. Purcell, who has a Ph.D. in Molecular and Cellular Biology from the University of Massachusetts in Amherst, led programs at Monsanto and Bayer that were designed to breed and cultivate fruits and vegetables sustainable for both farmers and consumers. His earlier work led to innovations and diverse technologies for global crops including corn, cotton and wheat.
“Unfold [will] focus on innovating vegetable seeds with the goal of lifting the vertical farming space to the next level of quality, efficiency and sustainability,” the company’s site says. “We believe in the future, and we believe vertical farming alleviates pressures on nature.”
Photo: Scientists from Bayer are working on innovative solutions to farmers that help them tackle tough agronomic challenges and become more productive and profitable. Credit: Bayer