AeroFarms raises equity financing for expansion and ongoing operations

Indoor vertical farming company AeroFarms has refinanced its debt to support the ongoing operations at its farm in Danville, Virginia, and has raised equity financing to further support existing operations and fund pre-construction activities for its expansion to a second farm.

“Our vision is to provide local food production of nutritious microgreens to regions around the world while preserving natural resources,” said Molly Montgomery, executive chair and CEO of AeroFarms. “We have recently demonstrated that vertical farming can indeed be sustainable, profitable and produce fresh greens at scale. I would like to extend my gratitude to our financial partners who believe in our vision and have provided financing to support our operation in Danville and commencement of pre-construction activities for expansion to a second farm.”

Equity was provided by existing investors, including Grosvenor Food & AgTech (GFA), Ingka Investments, Cibus Capital and ACEG, among others.  

“We believe AeroFarms can play a significant role in the global fresh food supply chain by providing nutritious greens at scale to local regions around the world,” said Stephan Dolezalek, managing partner of GFA. “AeroFarms has now proven the ability to deliver the transformative benefits of vertical farming through a viable, profitable business. To support these efforts, GFA, along with our investing partners, committed funding to support existing operations and enable the company to embark on its next phase of growth.” 

An asset-based loan provided by Siguler Guff was used to fully pay off the previous debt facility from Horizon Technology Finance, with additional funds to support ongoing operations at the Danville Farm. The new loan, which closed in May 2025, provides a more favorable interest rate than the previous debt, interest-only terms, and a carve-out for eligible equipment financing.

“We are excited to partner with AeroFarms in Danville, Virginia, to help them reach their full operational capacity,” said Matthew Bernstein, managing director in Siguler Guff’s Credit and Special Situations Strategy.

Siguler Guff joined with one of the top USDA-guaranteed lenders in the space to provide interim financing that will bridge the company until the permanent, USDA-guaranteed loan is expected to close later this year by that lender.

Waterside Commercial Finance served as the exclusive USDA finance adviser to AeroFarms, leveraging its proprietary Bridge-to-USDA Program to structure the transaction. Waterside originated the opportunity, led the underwriting process, coordinated the bridge loan and sourced the permanent USDA lender.