In 2025, as the startup world continues to adapt to challenging economic tides, the UK’s vertical farming pioneer, Vertical Future, finds itself on sale due to significant financial struggles. This article examines what went wrong with Vertical Future, the lessons founders can learn from the broader agritech industry in Europe, and actionable steps for entrepreneurs to safeguard their own ventures.
The Rise and Fall of Vertical Future
Vertical Future was founded in 2016 in London as a groundbreaking agritech company specializing in controlled-environment agriculture (CEA) technology. The firm aimed to revolutionize urban food production using vertical farming systems that grow crops in highly controlled indoor environments. Backed by £37 million from investors like SFC Capital and Pula Investments, Vertical Future grew its reputation and even ranked as the #1 global CEA technology company in the FoodTech500 rankings.
Financial Decline: Key Statistics
- Revenue Drop: Revenue plummeted from £6.7 million to £692,000 in 2024.
- Losses: Exceeded £10 million in the same year.
- Failed Scaling Efforts: Vertical Future had sought £60 million in funding to scale commercially and reduce costs through economies of scale, but financial instability undermined the effort.
Industry Challenges
The challenges faced by Vertical Future weren’t entirely unique, they reflected larger industry-wide struggles for vertical farming startups across Europe.
1. Rising Energy Costs
Operating vertical farms often relies on energy-intensive systems for lighting, climate control, and automation. With energy prices soaring in recent years, this model became financially untenable for many startups.
2. Macroeconomic Pressure
High production costs made vertical-farmed produce expensive for consumers during a period of suppressed spending power. Rising interest rates further limited growth opportunities for agritech businesses and restricted access to capital.
3. Wave of Failures
Vertical Future isn’t the only firm struggling. At least 14 other European agritech companies have declared bankruptcy since 2023, including major industry players like Infarm (which exited its core markets), Agricool (France), and The Jones Company (UK).
Lessons for Entrepreneurs: Learning from Vertical Future’s Mistakes
1. Focus on Economic Viability Before Scaling
Vertical Future’s attempt to scale quickly without solving fundamental cost challenges highlights the risk of premature scaling. Entrepreneurs must secure clear financial forecasts demonstrating profitability over time before seeking large-scale expansion funding.
2. Diversify Revenue Streams
Agritech startups can mitigate risk by diversifying their services. For instance, Vertical Future invested heavily in CEA systems for food production. A more diversified portfolio (e.g., incorporating pharmaceuticals or reforestation) might have cushioned it against market corrections.
3. Leverage AI Solutions
AI-driven tools like the F/MS AI Grant Finder and Application Writer can help startups find EU grants tailored to their unique needs. Imagine combining cutting-edge vertical farming systems with grant-supported innovations in sustainable energy, this could provide financial stability while advancing the tech.
4. Don’t Overlook Networking Opportunities
Vertical farming is a capital-intensive business model. Harnessing networks like PlayPal, the AI companion for entrepreneurs, can guide startup founders toward informed decisions by tapping into relevant data, connections, and expert advice.
How to Avoid Common Startup Failures
If you’re preparing to launch or scale a startup, especially in the agritech sector, take note of these specific mistakes to avoid:
Mistake #1: Over-reliance on External Funding
While outside investments are essential, they can come with constraints. Platforms like AI Startup Lawyer offer legal insights, ensuring you avoid damaging clauses in funding agreements, shareholder documents, and term sheets.
Mistake #2: Ignoring Market Feedback
Validate your ideas early using tools like the SANDBOX feature in the Fe/male Switch startup simulator. This gamified process allows you to identify and fix weaknesses in your product, audience targeting, and scaling strategy before committing significant resources.
Steps to Get Stronger: A How-To Guide
Step 1: Secure EU Funding
Leverage tools like the F/MS AI Grant Finder to identify grants that suit your business model. Use the integrated AI application writer to draft compelling grant proposals efficiently.
Step 2: Validate Before Scaling
Make problem validation your priority using resources like the SANDBOX Tower Blocks included in the Fe/male Switch startup simulator, where PlayPal acts as your AI guide and supports you in decision-making.
Step 3: Customize Solutions for Your Industry
Learn from failures in the agritech sector by diversifying offerings and integrating solutions such as affordable renewable energy sources or AI-powered farm management technologies.
Spotlight: PlayPal, Your AI Co-Founder
One of the most exciting innovations in the entrepreneurial space is PlayPal, an AI-driven conversation partner developed by Fe/male Switch. PlayPal’s user-friendly interface offers linguistic, mental health, and relationship advice while helping entrepreneurs make critical strategic decisions for their startup journey.
Whether you’re brainstorming ideas, refining your business strategy, or simply discussing creative innovations, PlayPal remembers your preferences and tailors its responses to help you succeed.
Final Thoughts: Opportunities in 2025
Vertical Future’s story serves as a cautionary tale but also highlights the immense opportunity within the agritech sector. By learning from their challenges, startups can position themselves for success by taking careful steps like validating ideas, leveraging AI tools like PlayPal, and securing grant funding through platforms like F/MS AI Grant Finder.
For those seeking tailored support, resources such as the Fe/male Switch startup simulator and PlayPal’s interactive guidance can turn dreams into actionable strategies. Mistakes are a part of entrepreneurship, but with the right tools, they can pave the path toward innovation and growth.
Key Takeaways:
- Agritech startups face high operational costs and economic pressures, be prepared.
- Validate your ideas before committing resources.
- Use AI tools like PlayPal to enhance decision-making and reduce errors.
- Diversify offerings and revenue streams to withstand financial downturns.
- Secure funding with help from AI grant-writing tools for long-term stability.
Adapt, innovate, and grow, you’ve got this!
FAQ
1. Why has Vertical Future been put up for sale?
Vertical Future faced significant financial losses, with its revenue plummeting from £6.7 million in 2023 to just £692,000 in 2024, and losses exceeding £10 million. This decline, coupled with mounting operational costs, led to the decision to list the company for sale. Read the full story on City AM
2. What is Vertical Future’s business model?
Vertical Future specializes in vertical farming technology, growing crops indoors in controlled environments. They aimed to reduce pesticide usage and support sustainable urban food production. However, their model faced economic challenges due to high operational costs.
3. Who invested in Vertical Future?
The company raised £37 million in funding from investors, including SFC Capital and Pula Investments.
4. What industry challenges did Vertical Future encounter?
Key challenges included rising energy costs, high interest rates, and suppressed consumer spending power. These pressures made the vertical farming model economically unsustainable for many companies in the sector. Learn about the industry’s struggles
5. Was Vertical Future unique in facing financial difficulties?
No, the vertical farming sector has seen multiple collapses, with at least 15 European startups going bankrupt since 2023, including well-known companies like Infarm and Agricool. Explore the sector-wide trends
6. How does energy consumption affect vertical farming?
Vertical farming relies on energy-intensive systems for lighting, climate control, and automation. Rising energy prices in recent years have severely impacted the economic viability of these operations.
7. What lessons can startups learn from Vertical Future’s story?
Startups should focus on achieving profitability at smaller scales before attempting to scale up. Diversifying revenue streams, leveraging AI tools, and securing grants can also help mitigate risks. Learn more about startup strategies
8. What recognition had Vertical Future received before its downfall?
Vertical Future was recognized as the #1 global CEA (Controlled-Environment Agriculture) technology company in the FoodTech500 rankings, showcasing its innovative contribution to agritech. Find more details on Agri-TechE
9. What impact has this failure had on the agritech sector?
The collapse of companies like Vertical Future has made investors more cautious about the vertical farming industry. This may lead to fewer large fundraising rounds until new technological advancements reduce operational costs.
10. How can agritech startups secure funding?
Agritech startups can use AI-driven tools like the F/MS AI Grant Finder to find and apply for EU grants, providing financial stability for tackling operational challenges.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch. The Fe/male Switch team is located in several countries, including the Netherlands and Malta.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 3,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
