A Tayside vertical farming specialist has received a cash injection of more than £42 million.
Intelligent Growth Solutions (IGS) operates from the James Hutton Institute in Invergowrie, Perthshire.
The company designs and builds vertical farms in food, pharmaceutical and fragrance markets around the world.
The Series B funding round was welcomed by First Minister Nicola Sturgeon who visited the IGS demonstration site at COP26.
She said: “It’s fantastic to see a Scottish company at the forefront of innovation in agritech and vertical farming attracting investment from across the world.
“With a great team behind it and support from Scottish Enterprise, IGS is expanding rapidly and now has nearly 150 staff.
“This investment will enable its next stage of global growth.
“The success of IGS shows the transition to net zero can create new opportunities for fair work and prosperity.”
Global sales for IGS
IGS was founded in 2013 with a vision to revolutionise the indoor growing market.
The company launched its first crop research centre at James Hutton in August 2018 and has since deployed to customers across four continents.
Its sales pipeline has quadrupled in the past 12 months.
IGS announced this investment as it showcases its technology at COP26 in Glasgow.
It has built a 5.4 metre high vertical farm open to all until November 12.
It is at the Sustainable Glasgow Landing on the north bank of the River Clyde.
Food production pioneers
IGS chief executive Officer David Farquhar said the funding round was over-subscribed.
He said: “There is growing realisation in all regions of the world that sustainable, deliverable and scalable food production is fundamental to the future of the planet and its people.
“The challenge to deliver this is more important than ever.
“An Agriculture 4.0 future must revolutionise crop production and the science behind it.
“With high levels of investor confidence in the future of indoor and vertical farming and the brilliant innovation taking place, this vision can become a certainty.”
Vertical farming investment
A conglomerate of new investors supports the £42.2m investment round.
These include Swiss-based COFRA AG, Cleveland Avenue LLC of Chicago, and Dundee’s DC Thomson, publisher of this newspaper.
Existing institutional investors Ospraie Ag Science, S2G Ventures, AgFunder and Scottish Enterprise as well as private shareholders and IGS staff contribute towards the investment.
COFRA’s Donald Brenninkmeijer and Ospraie’s Jason Mraz join the IGS board.
Mr Brenninkmeijer said: “There is an urgent need for sustainable, high-yield forms of food production.
“We’re excited to support IGS on its journey to resolve the dual challenge of food insecurity and environmental degradation through its vertical farming technology.
“IGS’s technology is unique, its growth plan solid and we are confident in its potential to rethink the future of agricultural food systems.”
Alistair Lang and Victoria McLaren of Thorntons Solicitors oversaw the funding round.