In July of this year, Japan’s wealthiest individual, Masayoshi Son, through the SoftBank Vision Fund, made a $200 million investment in Plenty, an agricultural technology startup based in South San Francisco, California. This move marked one of the largest venture capital investments in the agtech sector and signaled a growing interest in sustainable food production.
The initial meeting between Sun and Plenty’s founder, Matt Barnard, was expected to last only 15 minutes. However, the discussion extended beyond 45 minutes, leaving Sun deeply impressed. Just two weeks later, the deal was finalized. What made Plenty stand out? According to Sun, it was the company's potential to revolutionize urban food systems by increasing crop yields in densely populated areas, improving food quality, and reducing environmental impact.
Plenty specializes in indoor vertical farming, using towering structures to grow vegetables and fruits rather than relying on traditional farmland. When Sun first saw the planting towers being unloaded from a truck, he was initially puzzled by their unique design. But as the presentation unfolded, he became convinced of the company’s vision.
With a clear mission to scale from Silicon Valley to major cities worldwide—such as Beijing, Tokyo, and Dubai—Plenty aims to establish over 500 vertical farms within 30 days. These farms use less than 1% of the land and water required by conventional agriculture, rely solely on synthetic fertilizers, and eliminate the need for pesticides. The result is fresh, high-quality produce that can be delivered directly to consumers.
The rise of vertical farming has sparked a global trend. In 2015, agtech startups received $4.6 billion in funding, followed by $3.2 billion in 2016. By the first half of 2017 alone, early-stage agtech funding reached nearly $4.4 billion. Vertical farms, in particular, saw a massive surge, raising $198 million during the same period—a 560% increase from the previous year. Analysts predict that by 2022, the vertical agriculture market could exceed $6 billion.
While the concept of vertical farming isn’t new—Professor Dickson Despommier at Columbia University first proposed it in 1999—it has gained momentum in recent years. He envisioned a future where cities could sustain themselves without relying on traditional farming methods. Although vertical farms won’t replace outdoor agriculture, they offer a promising solution to food security, climate change, and resource scarcity.
Plenty, founded in 2014, has already demonstrated remarkable efficiency, producing 350 times more crops per square foot than traditional farming. However, not all vertical farms have been successful. Companies like FarmedHere in Chicago, once a leader in the field, had to shut down due to high operational costs, particularly related to LED lighting. While lighting costs have dropped significantly over the years, other challenges remain.
Location plays a critical role in the success of vertical farms. As Andy Yu of GGV Capital explains, “Sales by sales†is key. If you can’t sell your product, there’s no point in growing it. The second challenge is proximity to the consumer or demand side, which helps reduce supply chain inefficiencies. And third, the site must support the infrastructure needed for large-scale operations, including power, ventilation, and sanitation.
Cost analysis reveals that electricity and equipment make up the majority of expenses. In Japan, electricity accounts for 20–25% of production costs, while equipment depreciation takes up 30–35%. Labor and other inputs add to the total. However, in countries like China, where labor and land costs are lower, vertical farming could become more viable.
As the industry matures, price will be a decisive factor. While vertical farm products are currently pricier than conventional produce, some companies are aiming to compete with mainstream retailers like Walmart and Amazon. For now, vertical farming is still in its early stages, but with continued innovation and scaling, it may soon become a staple in urban food systems.
Masayoshi Son’s bet on Plenty reflects a broader shift in how we think about food. Whether it’s organic, local, or grown indoors, the future of agriculture is likely to be more efficient, sustainable, and tech-driven. And as more investors and entrepreneurs enter the space, the competition will only intensify. But for now, the dream of a smarter, greener food system continues to grow.
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