Vertical farming pioneer AeroFarms has once again emerged from the brink of collapse following the acquisition by an affiliate of investment firm Palm Ventures.
AeroFarms announced Thursday that an affiliate within the single-family office investment firm, which operates in Austin, Texas, and Greenwich, Conn., bought the business for an undisclosed amount in April.
Gustavo Burger was named CEO of the company. He previously served in leadership roles at Kraft Heinz and Anheuser-Busch InBev.
“The partnership significantly reduces AeroFarms’ debt, prioritizes sustainable growth and long-term profitability, while deepening customer relationships, continuing to grow consumer-favorite microgreen varieties and preserving AeroFarms’ Certified B mission,” AeroFarms said.
Vertical farms struggling
It’s been a challenging few years for the vertical farming industry, with bankruptcies from major industry players in 2023, including AeroFarms and AppHarvest.
AeroFarms survived Chapter 11 bankruptcy with the support of investors, led by Grosvenor Food and AgTech (GFA). AeroFarms said in the fall of 2023 that its restructuring enabled the company to reach profitability through its operation in Danville, Va.
AppHarvest liquidated and shut down operations.
Vertical farming continues to face challenges, but the market is still growing, according to Mordor Intelligence. The world market was valued at $6.27 billion in 2025 and is projected to grow from $7.53 billion in 2026 to $12.11 billion by 2031, according to Mordor.
“The vertical farming market has become more selective following the closures and restructurings in 2024 and 2025, pushing capital toward operators with retailer links, institutional backing and greater control over operating economics,” according to the Mordor report. “The vertical farming market is now being assessed less by headline expansion and more by unit profitability, energy efficiency and the ability to combine crop revenue with environmental, social and governance (ESG) premiums, carbon-accounting benefits and public co-investment support.”
AeroFarms’ rough ride
AeroFarms appeared on track to bounce back from bankruptcy, announcing new partnerships with grocers like Harris Teeter and celebrating successful relationships with major national chains like Costco in 2025.
But by the end of the year, the vertical farming pioneer was again struggling to keep its doors open.
On Dec. 11, the company submitted a WARN (Worker Adjustment and Retraining Notification) letter to Virginia, announcing that its largest investor had withdrawn support from the company and that it would close the Danville Farm operation and lay off 173 employees.
A little over a week later, AeroFarms announced that it would continue its operation in Danville.
“Recently, AeroFarms was provided with sudden and unexpected notice that it would not be receiving the necessary funding it required to continue operations. Since that time, the company’s circumstances have evolved rapidly. An existing stakeholder has agreed to provide funding to AeroFarms, enabling the company to continue operations and explore strategic alternatives,” AeroFarms said.
Palm Ventures steps in
Palm Ventures’ investment in AeroFarms is par for the course for the firm that focuses on struggling companies.
The firm said its investment was “rooted in Palm Ventures’ conviction in the agribusinesses’ proprietary aeroponic platform, the company’s strong retail market share in a category with double-digit rates and the powerful consumer shift toward nutrient-dense, sustainably grown, clean-label foods that have the potential to offer functional nutrition to support lifestyles and weight management, accelerated by increasing use of GLP-1 medications among consumers.”
AeroFarms’ mission-driven business model is a good fit for the investment firm, according to Bradley Palmer, head of Palm Ventures.
“Consumers are choosing foods that naturally pack higher nutritional value into every bite. Gustavo Burger brings decades of world-class experience, and our job is to support his team as they deliver on that promise. AeroFarms is ready for what’s next,” Palmer said.
Burger added that AeroFarms operates the most advanced aeroponic farming platform in the industry and maintains partnerships with some of the biggest retailers.
“My focus is to build on that foundation with the operational rigor it deserves and create a business that performs as well as its products,” he said. “We are grateful to our employees, customers and the local Virginia community for their support in reaching this new chapter.”
