Scott’s Addition-based Babylon Micro-Farms sells indoor hydroponic farms that it manages remotely for customers. (Photo courtesy of Babylon Micro-Farms)
About a year after formally unveiling its latest indoor farming unit, Scott’s Addition-based Babylon Micro-Farms is looking to cultivate further growth with a sizable capital infusion.
The company, which sells or leases its hydroponic systems to other businesses and then uses its own in-house software to remotely manage the farms for clients, closed last month on an $8 million capital raise.
It plans to use the funds to expand partnerships with existing clients and bring aboard new customers. The money is earmarked for marketing efforts and continued production of its Galleri indoor farm system, as well as software updates to the company’s customer-side mobile app, among other initiatives.
“We have the foundation in place to meet the needs of our clients. It’s now about scaling our partnerships,” CEO and co-founder Alexander Olesen said.
The Galleri Micro-Farm is an automated indoor vertical farm that the company introduced in late May 2022. It builds on the lessons learned from the precursor systems the company has tried out since its founding in 2017.
“They’re easier to install and maintain,” Olesen said of the latest iteration. “The experience is better for us as a managing entity and for our customers.”
Alexander Olesen
The Galleri sells for about $15,000 per unit and the company also drives recurring revenue through subscriptions to its BabylonIQ software.
The greens grown in Babylon farms are served by hospitals, universities and corporate dining services. Clients include retailers Ikea and Neiman Marcus and food services company Aramark, according to a company news release.
The company operates more than 150 farms in 23 states and in four countries, according to a company spokesman. Babylon also operates a farm onboard the 6,800-passenger MSC World Europa cruise ship.
This latest capital raise was led by Venture South, along with Hull Street Capital, Virginia Venture Partners, New Theory Ventures and others. The company started to seek investors late last year and polished off the raise in March, with Olesen noting that economic uncertainty has made fundraising a challenge. He said the company wrapped up the round just before Silicon Valley Bank’s collapse.
“It’s always been hard and in this environment, it’s been brutal. We have solid fundamentals and an industry leading product and we’re out in the market selling, and I think people recognized that,” Olesen said.
Babylon was founded in Charlottesville by Olesen and Graham Smith. In 2021, the company moved to its current headquarters at 3409 Carlton St., where it also builds its indoor farming units. The company has 35 employees.
Babylon’s capital raise was first reported by TechCrunch.
Scott’s Addition-based Babylon Micro-Farms sells indoor hydroponic farms that it manages remotely for customers. (Photo courtesy of Babylon Micro-Farms)
About a year after formally unveiling its latest indoor farming unit, Scott’s Addition-based Babylon Micro-Farms is looking to cultivate further growth with a sizable capital infusion.
The company, which sells or leases its hydroponic systems to other businesses and then uses its own in-house software to remotely manage the farms for clients, closed last month on an $8 million capital raise.
It plans to use the funds to expand partnerships with existing clients and bring aboard new customers. The money is earmarked for marketing efforts and continued production of its Galleri indoor farm system, as well as software updates to the company’s customer-side mobile app, among other initiatives.
“We have the foundation in place to meet the needs of our clients. It’s now about scaling our partnerships,” CEO and co-founder Alexander Olesen said.
The Galleri Micro-Farm is an automated indoor vertical farm that the company introduced in late May 2022. It builds on the lessons learned from the precursor systems the company has tried out since its founding in 2017.
“They’re easier to install and maintain,” Olesen said of the latest iteration. “The experience is better for us as a managing entity and for our customers.”
Alexander Olesen
The Galleri sells for about $15,000 per unit and the company also drives recurring revenue through subscriptions to its BabylonIQ software.
The greens grown in Babylon farms are served by hospitals, universities and corporate dining services. Clients include retailers Ikea and Neiman Marcus and food services company Aramark, according to a company news release.
The company operates more than 150 farms in 23 states and in four countries, according to a company spokesman. Babylon also operates a farm onboard the 6,800-passenger MSC World Europa cruise ship.
This latest capital raise was led by Venture South, along with Hull Street Capital, Virginia Venture Partners, New Theory Ventures and others. The company started to seek investors late last year and polished off the raise in March, with Olesen noting that economic uncertainty has made fundraising a challenge. He said the company wrapped up the round just before Silicon Valley Bank’s collapse.
“It’s always been hard and in this environment, it’s been brutal. We have solid fundamentals and an industry leading product and we’re out in the market selling, and I think people recognized that,” Olesen said.
Babylon was founded in Charlottesville by Olesen and Graham Smith. In 2021, the company moved to its current headquarters at 3409 Carlton St., where it also builds its indoor farming units. The company has 35 employees.
Babylon’s capital raise was first reported by TechCrunch.
Richmond’s version of Pineapple Express. Love to see it
Thats pretty freakin awesome. I had no idea that they had such a wide reach. Also had no idea there were so many venture capital firms here in the Richmond area. I love these stories.