Urban agriculture company BrightFarms has raised $4.9 million in Series B financing from NGEN Partners, Emil Capital Partners and several individual investors, bringing the company's total VC backing to over $9 million. BrightFarms previously raised a $4.3 million Series A round at a valuation of $12 million in 2011. The new capital will enable the company to build commercial-scale greenhouses to meet the increasing demand from the supermarket industry for locally grown produce.
BrightFarms, which grows local produce nationwide, also finances, builds and operates local greenhouse farms, eliminating time, distance and costs from the food supply chain. The company signs long-term purchase agreements with supermarkets that feature fixed prices and minimum volume commitments. Its growing method uses less land and water than conventional agriculture.