Indoor vertical farms: the new bet of startups and their business aspects

agricultural activity has always played a prominent role in the Brazilian economy. However, among several highs related to traditional agriculture, the high cost is highlighted by food as one of the main difficulties viewed by production systems. This can be reversed through technology, or, as it has been called: Urban Agriculture.

Startups have been betting that agtechs can be the solution to the country's supply and food safety, as they influence the increased productivity from the exclusive use of technology, which it is calculated, calculated and supply all the needs of the cultivated product. Thus, any space in the city can become a farm, unlike how it happens in the field. In vertical farms, foods are grown on shelves arranged on each other.

This alternative method of agricultural cultivation intended for closed spaces has become a worldwide trend, already present in large metropolises such as Paris, Dubai and New York. Recently, thanks to startups, this technology began to gain strength in Brazil, which already has 21 vertical farms operations.

Thus, indoor farms are breaking innovation barriers as they use technology to digitally monitor and rigorously control environments, ensuring that food cultivation throughout the year, avoiding adversity that may interfere with growth and production as it is usually verified in traditional agriculture.

Investment in Agtechs is high, even with the deceleration of the financial market: in the third quarter of 2022, technological agriculture companies captured US $ 2.8 billion. This is due to the imminent risk of garden scarcity and plants cultivated in a traditional way, taking into consideration the obstacles of location, weather and possible loss of crops in view of this.

The performance of modern agriculture usually takes place in B2B format, that is, in a business model made between companies, through which one sells its product and/or service to the other. Given this, modern agriculture arises from the entrepreneur's view and has special relevance in the economic aspect, even reflecting tax field, as taxation can be attenuated to the entrepreneur, facilitating the implementation of his business.