Vertical farming startup Plenty filed for bankruptcy despite raising $1 billion from SoftBank, Walmart and Jeff Bezos

According to a press release issued on Monday, vertical farming company Plenty has declared bankruptcy. Despite securing nearly $1 billion from high-profile investors, including SoftBank Investment Advisers, Walmart, and Jeff Bezos through Bezos Expeditions and as an angel investor, the company has struggled to maintain financial stability.

Plenty, based in South San Francisco and established in 2014, has been a notable player in the agtech sector. According to Pitchbook data, the company was valued at $1.9 billion during a $400 million Series E funding round in January 2022. However, the broader industry has seen several high-profile bankruptcies recently, highlighting the sector’s challenges.

As part of its bankruptcy proceedings, Plenty has received a commitment for $20.7 million in debtor-in-possession financing. This type of financing is typical for firms undergoing Chapter 11 bankruptcy and allows companies to continue operations during restructuring. Plenty plans to maintain operations at its strawberry farm in Virginia and its plant science R&D center in Wyoming.

The agtech sector has faced significant upheavals, with other major players like Bowery Farming, AeroFarms, and AppHarvest also experiencing financial difficulties. Bowery Farming reportedly began shutting down operations in November 2024 after raising over $700 million and reaching a valuation of $2 billion in 2021.

AeroFarms and AppHarvest have both filed for bankruptcy protection in recent years, with AeroFarms exiting bankruptcy protection in September 2023 fully funded, while AppHarvest, after going public in 2021 at a $1 billion valuation, sought Chapter 11 protection in 2023.