Plenty, once hailed as the future of sustainable agriculture, has filed for bankruptcy after failing to secure enough capital to maintain operations. The vertical farming startup, backed by high-profile investors such as Amazon founder Jeff Bezos, SoftBank, and former Google CEO Eric Schmidt, could not overcome the financial turbulence it faced over the past three years.
Plenty’s downfall marks a dramatic turn for a company that once promised to revolutionize the global food system. The startup had raised more than $900 million in venture funding, but it burned through its reserves rapidly due to high operating costs, stalled projects, and an overall dip in investor interest in ag-tech.
A Grand Vision That Withered
Founded in 2014 in South San Francisco, Plenty aimed to reinvent farming by growing produce indoors using vertical structures and hydroponic systems. The founders, Matt Barnard and Nate Storey, believed they could build massive indoor farms near urban centers and cut down the supply chain by delivering fresh produce locally. They promised to use 95% less water and 99% less land compared to traditional farming.
Their mission resonated with the sustainability movement and climate advocates. Vertical farming, which involves stacking crops in controlled environments, seemed like a logical step in a world facing increasing food insecurity, urban sprawl, and unpredictable weather patterns. The idea attracted tech billionaires and venture capitalists who believed the agricultural sector was ripe for disruption.
At its peak, Plenty built and operated large vertical farms in South San Francisco and Compton, California. The Compton facility, which received a $400 million investment pledge in 2022, was supposed to be the company’s flagship—a high-tech, automated vertical farm that could churn out massive volumes of leafy greens and vegetables year-round. But by 2024, Plenty had halted construction on multiple projects and laid off over a third of its workforce.
Funding Drought and Strategic Missteps
Plenty’s financial troubles stem from a series of miscalculations and market realities. The startup relied heavily on venture capital to scale operations, but investors began pulling back in late 2022. Rising interest rates, economic uncertainty, and a slowdown in the tech sector triggered a broader “VC winter,” drying up funds for capital-intensive startups like Plenty.
Plenty’s business model also suffered from its overambitious scaling plans. Instead of solidifying one profitable location, the startup tried to expand aggressively. It signed deals and made partnerships before validating long-term profitability. The company underestimated the costs of running fully automated vertical farms, from climate control to LED lighting and robotics. Electricity bills alone consumed large portions of the operating budget.
Moreover, the startup struggled to compete with traditional agriculture on price. Although vertical farming offers freshness and consistency, conventional farming still dominates the industry due to its scale and lower production costs. Grocery retailers appreciated Plenty’s quality, but they hesitated to pay premiums for vertically farmed greens, especially when consumers did not consistently choose them over cheaper alternatives.
Bankruptcy and Restructuring Plan
On March 25, 2025, Plenty officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of California. The filing revealed that the company had over $150 million in liabilities and fewer assets. Plenty listed several major creditors, including equipment suppliers and construction firms involved in its halted expansion projects.
Plenty’s CEO Arama Kukutai, who took over in 2022, stated that the bankruptcy filing would allow the company to restructure, stabilize its finances, and explore opportunities for a potential acquisition or investment. He acknowledged the disappointment of investors, employees, and customers but emphasized that Plenty still held valuable technology and intellectual property.
“We built groundbreaking infrastructure and pioneered solutions that modern agriculture will rely on in the future,” Kukutai said in a press release. “However, the capital markets shifted faster than we could adjust. We intend to restructure in a way that preserves our core innovations and finds new stewards for our technology.”
What Went Wrong?
Several analysts believe Plenty’s demise signals a larger reckoning for vertical farming and other climate-tech startups. These companies entered the market with bold visions but underestimated the complexities of scaling hardware-heavy businesses. Many faced similar hurdles: expensive equipment, untested economics, and dependency on external capital to survive.
Plenty stood out in its category for the sheer volume of capital it attracted. Few ag-tech startups reached a valuation as high as Plenty’s at its peak. But instead of focusing on incremental growth and cost management, the startup pursued a Silicon Valley-style blitzscaling strategy. This approach worked for software but faltered in the high-burn world of food production.
Also, Plenty’s pitch relied heavily on consumer sentiment and sustainability branding. While many consumers expressed interest in eco-friendly produce, most still prioritized cost and availability. Supermarket chains liked the idea of locally grown leafy greens, but they demanded prices comparable to conventional products. Plenty never managed to meet those benchmarks while remaining profitable.
Additionally, internal reports from former employees revealed operational inefficiencies and unrealistic growth targets. Several engineers and agronomists left the company in late 2023, citing leadership disconnects and shifting priorities. Morale dropped as layoffs mounted, and promised bonuses and stock options lost their value.
The Future of Vertical Farming
Plenty’s bankruptcy does not mean vertical farming has no future. Several smaller startups and established players like Bowery Farming, AeroFarms, and Infarm continue to operate, albeit with more conservative strategies. These companies have narrowed their focus to high-margin crops and localized distribution, avoiding the scale-at-all-costs mindset.
Industry experts also believe that vertical farming can succeed in specific niches: premium herbs, microgreens, or pharmaceutical-grade botanicals. Others suggest collaboration with grocery giants or institutional buyers like airlines, hospitals, or fast-food chains can provide stable demand. Technology improvements—especially in LED efficiency and automation—may eventually reduce costs enough to make the model viable.
Governments and climate advocates still support indoor farming as a potential solution to environmental challenges. Controlled environment agriculture (CEA) can reduce pesticide use, limit water consumption, and localize food production, cutting emissions from long-haul transportation.
Lessons Learned
Plenty’s fall underscores a hard truth: vision alone does not build a sustainable business. The startup had the technology, capital, and public goodwill, but it lacked the discipline to translate its vision into operational success. Investors, too, must rethink their approach to hardware-based startups and demand clearer paths to profitability.
While Plenty may fade from the vertical farming scene, its legacy could live on through its patents, partnerships, and the hard lessons it leaves behind. Future founders in the ag-tech space will likely build more cautiously, focusing on efficiency and market validation rather than headlines and hypergrowth.