AeroFarms, a pioneering leader in indoor vertical farming and the top supplier of microgreens to the U.S. retail market, has taken significant steps to strengthen its financial position and accelerate growth. The company announced that it has successfully refinanced its debt to bolster ongoing operations at its Danville, Virginia farm, while also raising new equity financing to support its current activities and fund pre-construction work for a second farming facility.
This dual-financing achievement reflects AeroFarms’ commitment to expanding its innovative farming model, which combines cutting-edge technology, data science, and sustainable practices to deliver fresh, nutritious greens year-round, regardless of climate or geography.
“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 Support from Longtime Investors
The equity financing round was supported by AeroFarms’ existing investors, underscoring their continued confidence in the company’s growth trajectory. Participants included Grosvenor Food & AgTech (GFA), Ingka Investments, Cibus Capital, ACEG, and other backers. These partners have been instrumental in providing not just capital, but also strategic guidance, helping AeroFarms navigate the unique challenges of scaling vertical farming.
Stephan Dolezalek, Managing Partner of GFA, emphasized the transformative potential of AeroFarms’ model. “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,” he said. “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.”
GFA, known for its focus on food and agriculture technology investments, views AeroFarms as a critical innovator in addressing food security, sustainability, and supply chain efficiency.
Debt Refinancing to Boost Operational Stability
A significant component of AeroFarms’ recent financial progress came through the refinancing of its debt. The company secured an asset-based loan from Siguler Guff, a global multi-strategy investment firm with a strong track record in credit and special situations.
This financing arrangement fully paid off AeroFarms’ prior debt facility from Horizon Technology Finance. The new loan, finalized in May 2025, not only delivers a more favorable interest rate but also includes interest-only payment terms and a carve-out for eligible equipment financing. These terms are designed to improve the company’s cash flow and provide flexibility to invest in operational improvements.
Matthew Bernstein, Managing Director in Siguler Guff’s Credit and Special Situations Strategy, expressed optimism about the partnership. “We are excited to partner with AeroFarms in Danville, Virginia, to help them reach their full operational capacity,” he said. Bernstein added that Siguler Guff worked with one of the top USDA Guaranteed lenders in the industry to structure interim financing. This bridge funding is designed to carry AeroFarms until the anticipated closing of a permanent USDA-guaranteed loan later this year.
Role of Waterside Commercial Finance
Waterside Commercial Finance played a key role in the transaction, serving as AeroFarms’ exclusive USDA finance advisor. Using its proprietary “Bridge-to-USDA Program,” Waterside structured the financing to meet the company’s immediate needs while positioning it for a smooth transition to the long-term USDA-guaranteed loan.
The firm originated the financing opportunity, led the underwriting process, coordinated the bridge loan, and sourced the permanent USDA lender. This strategic involvement ensured that AeroFarms could secure the capital it needed without delays, enabling the Danville farm to maintain operations at full strength while laying the groundwork for expansion.
Sustainability and Market Impact
AeroFarms’ operations are built on the premise that vertical farming can transform the way food is grown and distributed. Using advanced aeroponic technology, the company grows microgreens indoors in a controlled environment without soil, using up to 95% less water than conventional farming. The process eliminates the need for pesticides and significantly reduces transportation emissions by producing food close to where it is consumed.
In recent years, AeroFarms has demonstrated that its model is not only environmentally friendly but also commercially viable. The Danville farm, which produces a variety of leafy greens for retail and foodservice customers, serves as a proof point for the scalability of vertical farming. The forthcoming second farm is expected to replicate and expand upon this success, bringing more local produce to market while supporting economic development in the surrounding community.
Global Vision, Local Roots
While AeroFarms’ technology and business model have global applications, the company remains committed to fostering strong ties with local communities. By situating farms near urban centers and regional markets, AeroFarms reduces the time from harvest to plate, delivering fresher products with a longer shelf life. This approach aligns with growing consumer demand for transparency, sustainability, and food quality.
The expansion to a second farm is not just a capacity increase—it is a strategic step toward fulfilling the company’s mission of enabling local food production worldwide. By demonstrating profitability at scale, AeroFarms aims to attract further investment and partnerships that can replicate its success in diverse climates and markets.
