The vertical farming company, Plenty, has announced that it has filed for bankruptcy, as stated in a press release issued on Monday.

According to the company’s statement, Plenty has secured a commitment for $20.7 million in debtor-in-possession financing as part of its proposed restructuring plan. The company intends to continue operating its strawberry farm in Virginia and its plant science research and development (R&D) center in Wyoming.

It’s worth noting that debtor-in-possession financing refers to financing provided to companies that are undergoing Chapter 11 bankruptcy proceedings.

Since its inception in 2014, the South San Francisco-based company, Plenty, has raised approximately $1 billion in funding from various investors, including notable names such as SoftBank Investment Advisers, Walmart, Bezos Expeditions, and Jeff Bezos, who invested as an angel investor.

The company’s last known valuation was $1.9 billion, which was reported at the time of its $400 million Series E fundraise in January 2022, according to data from PitchBook.

The industry has experienced a significant number of bankruptcies in recent years. For instance, in November 2024, the agtech unicorn, Bowery Farming, was reported to be ceasing operations after raising over $700 million in funding and being valued at $2 billion in 2021. Additionally, in 2023, both AeroFarms and AppHarvest filed for bankruptcy protection. AeroFarms had raised more than $300 million from its backers before filing for bankruptcy and later exited bankruptcy protection with full funding in September 2023.

Similarly, AppHarvest raised over $700 million before going public in 2021 with a valuation of $1 billion, only to file for Chapter 11 protection in 2023.