Key Takeaways:
- Rift Labs announces a $4.5 million investment partnership with Norselab to expand its LED technology for indoor agriculture.
- The funding includes $1.5 million in cash and $3.0 million through secondary shares, with additional participation from Karbon Invest.
- Rift Labs’ dynamic LED technology offers energy-efficient, adaptable light solutions for vertical farms and industrial greenhouses.
- The horticultural lighting market is expected to grow significantly, positioning Rift Labs as a key player in the industry.
- Strategic partnership with Eksfin enhances financing opportunities for international buyers of Rift Labs’ solutions.
Rift Labs, a leader in dynamic LED lighting solutions, has announced a $4.5 million investment partnership with Norselab, aimed at strengthening its role in the indoor agriculture sector. The funding round, led by Norselab, includes $1.5 million in cash and $3.0 million through the acquisition of secondary shares. Existing shareholder Karbon Invest also participated by converting a shareholder loan.
“This partnership with Norselab is very exciting and will allow us to take our Photosynthetic offering to the next level,” said Halvard Aagaard, CEO of Rift Labs. “We are witnessing substantial interest globally in our technology, with commercial contracts already secured for large-scale plant production in both vertical farms and industrial greenhouses.”
Why Norselab Invested in Rift Labs
The decision by Norselab to invest in Rift Labs is part of a broader vision to address global food production challenges. “We need a radical shift in how we produce food, and we are convinced that Rift Labs can take a leading position in controlled-environment agriculture in the years ahead,” said Yngve Tvedt, CIO of Norselab.
Rift Labs’ proprietary LED lighting system, initially developed for the cinema industry, has been adapted for agriculture, providing energy-efficient, dynamic light conditions optimized for plant growth. The system allows for precise manipulation of light conditions, offering growers greater flexibility, better yields, and reduced energy costs of up to 10-25% compared to competitors.
Strategic Financing with Eksfin
The company has also formed a partnership with Export Finance Norway (Eksfin), a Norwegian governmental institution that offers financial solutions and risk-sharing guarantees. This collaboration will provide international buyers of Rift Labs’ LED solutions with long-term financing options, further supporting the company’s global expansion.
Seizing Opportunities in a Growing Market
The global horticultural lighting market is projected to grow from $3.7 billion in 2023 to $10.4 billion by 2028, driven by the increasing demand for sustainable and energy-efficient lighting solutions in indoor agriculture. Rift Labs is well positioned to capitalize on this growth, leveraging its patented LED technology to become a leader in the market.
“Our technology allows growers to adapt their light conditions dynamically, leading to more efficient operations and improved plant growth,” added Aagaard. “With this investment and our continued innovation, we aim to set new standards in the industry.”
Rift Labs Latest News
Photosynthetic Revealed at VertiFarm in Dortmund (2022/09/28)
Rift Labs has launched Photosynthetic, a new brand offering advanced lighting solutions for Controlled Environment Agriculture (CEA). The company aims to improve yield, reduce production costs, and help growers achieve profitability. The company offers self-contained R&D labs, customized lighting solutions, and cloud-based farming management software. Photosynthetic targets vertical farms, industrial greenhouses, and other growers, but also caters to plant science professionals, universities, research institutions, and pharmaceutical and cosmetics industries. The company has raised approximately $5M in funding since June 2021.
Nets a $1.7M Funding to Grow in Vertical Farming (2022/08/15)
Rift Labs has raised $1.7M in funding to expand its vertical farming and controlled environment agriculture solutions. The funding was led by Karbon Invest, with participation from existing shareholders. Rift Labs is working on the Hydroponics Lab system, which uses advanced dynamic LED lighting for plant growth. The market for vertical farming is expected to grow significantly, with a CAGR of over 25%. Bulk Industrier, founded by Peder Naerbø, is investing in the company to create synergies between greenhouse and vertical farming production.
