Siguler Guff Facilitates AeroFarms' Refinancing Amid Vertical Farming's Profitability Milestone

AeroFarms, a pioneering indoor vertical farming company, has successfully refinanced its debt with the support of Siguler Guff and Waterside Commercial Finance, signaling a robust turnaround from its 2023 bankruptcy. This financial restructuring, which includes an asset-based loan and unspecified equity financing from existing investors, aims to sustain operations in Danville, Va., and fund pre-construction activities for a second farm. The move underscores the company's commitment to revolutionizing local food production with its nutrient-rich microgreens, while also highlighting the potential for vertical farming to achieve profitability and sustainability on a global scale.

The refinancing deal, finalized in May, replaces AeroFarms' previous debt facility from Horizon Technology Finance with terms that feature a more favorable interest rate and interest-only payments. This strategic financial maneuver is part of a broader effort to streamline operations and focus on high-margin products, following a significant restructuring that saw the company emerge from bankruptcy under the leadership of CEO Molly Montgomery. Montgomery's decisive actions, including staff reductions and the closure of R&D facilities, have positioned AeroFarms for a profitable future, as evidenced by recent quarters.

Despite a challenging funding environment for vertical farming startups, with U.S. investments plummeting from $2.1 billion in 2021 to just $57 million in 2025, AeroFarms has managed to secure backing from prominent investors such as Grosvenor Food & AgTech, Ingka Investments, and Cibus Capital. This investor confidence reflects a belief in AeroFarms' ability to contribute meaningfully to the global fresh food supply chain by leveraging vertical farming's advantages, including reduced water usage and the ability to grow crops year-round, regardless of external weather conditions.

The company's success story is a beacon for the vertical farming industry, which has faced skepticism over its economic viability. AeroFarms' recent profitability and strategic refinancing demonstrate that with the right focus and financial support, vertical farming can indeed meet the dual challenges of sustainability and profitability. As the world grapples with the need for more sustainable agricultural practices, AeroFarms' progress offers a glimpse into the future of farming—one that is local, efficient, and environmentally friendly.