Vertical Oceans: Sustainable Shrimp Farming in City Towers

A New Approach to Sustainable Shrimp Farming

John Diener, serving as CEO of a company focused on aquaculture nutrition and genetics, frequently visited numerous shrimp farms as part of his professional duties. Over time, he grew increasingly concerned with the environmentally damaging practices prevalent in many of these operations. A pivotal moment occurred when his wife purchased frozen shrimp for dinner, leading him to recognize the potential impact of the industry on his family’s well-being.

This realization stemmed from the shrimp’s origin in a nation known for its use of antibiotics in shrimp cultivation. Determined to instigate change, Diener embarked on a mission to establish a novel model for seafood production.

Introducing Vertical Oceans

The outcome of this endeavor was Vertical Oceans, a startup dedicated to cultivating sustainable shrimp within expansive “aqua towers.” These towers are designed for placement within urban environments, potentially housed in structures resembling conventional buildings.

The towers facilitate shrimp incubation without the use of chemicals or antibiotics, and enable year-round production. Considering the global shrimp market is valued at $50 billion annually, the potential impact is significant.

Securing Seed Funding

Emerging from the IndieBio accelerator program, Vertical Oceans has successfully secured a $3.5 million seed round led by Khosla Ventures. This investment marks what appears to be the first instance of a major Silicon Valley fund directly investing in an aquaculture startup.

Khosla Ventures contributed $3 million to the round, with SOSV following their pro-rata share for the remaining $500,000.

Demonstrating Proof of Concept

To date, the startup has completed 10 harvests over the past six months from its pilot facility in Singapore. These harvests serve to validate the core biological principles and demonstrate the production of a high-quality product.

Competitive Landscape

Currently, two companies in Singapore – Universal Aquaculture and Apollo Aquaculture – operate vertical aquaculture systems. In the U.S., Tru Shrimp is developing a scalable indoor farming technology, though it isn’t specifically a vertical farming operation.

Product Quality and Scalability

According to Diener, “Our product replicates the taste of fresh, ocean-caught shrimp, a consistency that is challenging to achieve in recirculating aquaculture systems.”

The superior quality and freshness of the product allow for pricing comparable to fresh, wild-caught shrimp, rather than farmed, frozen varieties. This premium pricing structure effectively offsets the costs associated with vertical and urban farming.

Expanding Operations

The system is engineered to be adaptable to various locations, enabling vertical farming in urban centers, even those with harsh winters like Chicago. Vertical Oceans is currently expanding into a new facility near downtown Singapore to further refine and scale its technologies.

Experienced Leadership

Diener, alongside co-founder Enzo Acerbi, previously collaborated at an insect protein company, where they gained valuable experience in technology development and scaling within the agritech sector.