Rise Gardens Secures $9M Series A to Revolutionize Indoor Farming

Rise Gardens Secures $9 Million to Expand Indoor Hydroponic Systems

With a growing number of individuals adopting plant-based lifestyles and prioritizing sustainable food sources, Rise Gardens empowers individuals to cultivate their own produce conveniently within their homes.

Series A Funding and Company Growth

The Chicago-based company, specializing in indoor, smart hydroponic systems, successfully completed an oversubscribed Series A funding round, securing $9 million. This investment was spearheaded by TELUS Ventures, alongside participation from existing investors True Ventures and the Amazon Alexa Fund, as well as new investor Listen Ventures. Since its inception in 2017, Rise Gardens has accumulated a total of $13 million in venture funding, as reported by founder and CEO Hank Adams to TechCrunch.

From Prototype to Product

Although the company was founded in 2017, Adams, leveraging his experience in sports technology, dedicated several years to refining prototypes before the initial product launch in 2019. Rise Gardens’ IoT-enabled systems are engineered for year-round cultivation of vegetables, herbs, and microgreens.

Consumers can begin their gardening journey with an initial investment of approximately $300, selecting from three distinct system tiers.

Simplifying the Gardening Experience

Adams emphasizes the inherent satisfaction in growing one's own food, but acknowledges the need for support to prevent the hobby from becoming overwhelming or burdensome. Consequently, Rise Gardens provides a companion mobile application that monitors water levels and plant development, proactively notifying users when watering, fertilization, or general plant care is required.

“Consumers are increasingly focused on the origins and quality of their food,” he stated. “The recent global pandemic further amplified this trend, prompting more people to explore home gardening.”

Significant Sales Growth and Impact

Indeed, consumer interest surged, resulting in Rise Gardens exceeding seven-figure sales in 2020, with complete sell-outs occurring three times throughout the year. Customers collectively purchased nearly 100,000 plants and harvested 50,000.

The company estimates that its systems have contributed to preventing over 2,000 pounds of food waste and conserving 250,000 gallons of water since its launch in 2019.

Competitive Landscape

The concept of indoor farming is well-established, with existing players such as AeroGarden and AeroGrow (acquired by Scotts-Miracle Gro last November), and Click & Grow. Rise Gardens joins a new wave of startups in this space, including Gardyn.

Differentiation Through Design and Flexibility

However, Rise Gardens distinguishes itself through the use of powder-coated metals and glass in its garden construction, creating a visually appealing focal point within a room. The company also prioritizes user experimentation and customization.

“We aimed for a system that would remain engaging over time, recognizing that individuals may become disinterested once a hobby is mastered,” Adams explained. “Users can upgrade their systems by swapping tray lids for denser planting, adding microgreens kits, or incorporating plant supports for tomatoes and peppers. Trellises for vine-growing snap peas are also available.”

Future Plans and Expansion

The Series A funding will be allocated to product development, inventory management, manufacturing enhancements, expansion into new markets, and strengthening the team, particularly in customer service and marketing. Currently employing around 25 individuals, Rise Gardens intends to add another eight team members this year.

Furthermore, Rise Gardens’ products will soon be available on Amazon – marking its first sales channel beyond its direct website. The company is also extending its reach into schools, introducing a “version 2.0” of its school garden program.

Investor Confidence

Rich Osborn, president and managing partner of TELUS Ventures, highlighted Adams and his team’s expertise, data proficiency, and collaboration with Amazon as key factors in their investment decision, as shared with TechCrunch.

He emphasized the strong consumer demand for these products, as well as the significant sustainability and social benefits associated with such investments.

The Future of Food Growth

Nishan Majarian, interim president of TELUS Agriculture and global managing director of agribusiness, envisions a future where food production encompasses a spectrum of methods, with crop management occurring at the individual plant level.

“Following the acquisition of Climate Corp. by Monsanto, there has been substantial investment in agriculture, seeking the next billion-dollar success story,” Majarian added. “Agrifood represents the last largely fragmented supply chain. The unique characteristics of each crop and market create localized, complex environments – a fertile ground, if you will – for startups that can secure capital to address these challenges and achieve scalability.”