Ringgold, Va.-headquartered AeroFarms, an indoor vertical farming company re-emerging from bankruptcy, has refinanced its debt to support ongoing operations at its farm in Danville, Va., and additionally raised unspecified equity financing to further support existing operations and fund pre-construction activities at a second farm.

“Our vision is to provide local food production of nutritious microgreens to regions around the world, while preserving natural resources,” said AeroFarms CEO and Executive Chairman Molly Montgomery said. “We have recently demonstrated that vertical farming can indeed be sustainable, profitable, and produce fresh greens at scale.”

New York-based Siguler Guff joined with Wilmington, Del.-based Waterside Commercial Finance, a U.S. Department of Agriculture (USDA) guaranteed lender, to provide interim financing until the company receives an expected permanent, USDA-guaranteed loan this year. The asset-based loan provided by Siguler Guff was used to fully pay off the previous debt facility from Horizon Technology Finance, the company said. The new loan, which closed in May, provides a more favorable interest rate than the previous debt, interest-only terms and a carve-out for eligible equipment financing.

The equity funding came from existing investors, including Grosvenor Food & AgTech (GFA), Ikea subsidiary Ingka Investments, Cibus Capital, ACEG and others, amid sharply lower funding for vertical farming companies. According to Pitchbook data, U.S. indoor farming startups raised a mere $57 million across five deals in 2025, compared with $2.1 billion in 2021. Also, Plenty, a Silicon Valley-based startup backed by investors including Jeff Bezos and Eric Schmidt, filed for bankruptcy in March, while Bowery, shut down last November.

AeroFarms, which had raised nearly $250 million from investors, filed for Chapter 11 bankruptcy in June 2023 and emerged at the end of the year after restructuring, with Montgomery as CEO. She laid off half the staff and shut down R&D facilities in New Jersey and Abu Dhabi to focus on the company’s 140,000-square-foot production facility in Virginia, according to Fast Company. Under Montgomery, AeroFarms has sharpened its focus on higher-margin microgreens. It has been profitable in recent quarters.

“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.”

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