
In a bid to transform local food production through innovative indoor farming technologies, Oslo-based company Avisomo has secured €5 million in funding to enhance its fully automated vertical farming solutions. This financial boost, which includes a €1.6 million grant from Innovation Norway and €3.4 million from existing investors, will further the company’s efforts to optimize its modular farming systems. These systems aim to simplify cultivation while reducing dependency on traditional agricultural resources.
Founded in 2018 by Martin Molenaar and Jo-Andre Flaseth as a student project at the Norwegian University of Science and Technology, Avisomo has focused on scalable automation in vertical farming. Its "no-hands farming" concept is designed for large-scale operations, using soil-free cultivation methods that rely on hydroponic or aeroponic techniques. These methods allow plants to be grown in stacked layers, maximizing space efficiency while minimizing water consumption and eliminating the risks associated with soil-borne diseases. By integrating seamlessly into existing supply chains, the technology removes the need for specialized knowledge in plant cultivation, chemistry, or technical operations. The result is fresh, locally grown produce available year-round with an extended shelf life and significantly lower environmental impact.
One of the key advantages of vertical farming lies in its potential to reduce food waste. Traditional supply chains often lead to significant losses, with imported lettuce alone seeing wastage levels of up to 30% before it reaches consumers. By enabling local production, companies like Avisomo seek to address these inefficiencies while also cutting down emissions caused by long-haul transportation of fresh produce. Avisomo's approach offers a sustainable alternative to traditional agriculture, which is a major contributor to global warming and resource depletion. Farming currently emits more greenhouse gases than the entire transportation sector, consumes 70% of the world's freshwater, and leads to harmful fertilizer runoff. As the global population is expected to reach 10 billion by 2050, food production will need to increase significantly, making innovative methods like vertical farming crucial for reducing environmental impact while boosting food security.
According to Sverre H. Bjornstad, Director of Innovation Norway Innlandet, Avisomo’s approach is both innovative and strategically important for Norway’s agricultural landscape. The company's development of a fully automated facility for vertical hydroponic cultivation is expected to bolster the country’s food self-sufficiency. With its industrial pilot project in partnership with Norwegian retailer Coop set to launch in 2025, Avisomo aims to produce 100 tons of fresh lettuce annually, focusing on varieties that would otherwise be imported.
CEA in 2024: A Year of Hard Lessons and New Opportunities
Despite the promise of vertical farming, 2024 has been a challenging year for the sector. Several well-known companies, including SmallHold and Bowery Farming, faced economic difficulties, leading to closures and bankruptcies. The industry, long touted as a solution to global food production challenges, has struggled with the high costs of operations and lack of VC funding. Many ventures that initially garnered significant investment found themselves unable to sustain operations in the face of economic headwinds.
However, while some vertical farming initiatives have faltered, other controlled environment agriculture (CEA) methods have continued to gain traction. Energy-efficient greenhouses such as BrightFarms, Oishii, and Gotham Greens emerged as strong contenders in the field, demonstrating a more viable path forward. Unlike fully indoor vertical farms, these greenhouse models rely on natural sunlight to supplement artificial lighting, making them more energy-efficient and cost-effective. According to Agfunder, the sector as a whole remains active, with 93 investment deals recorded in 2023, totaling $680 million.
As Avisomo moves forward with its vision for automated vertical farming, its success will depend not only on technological innovation but also on its ability to navigate the economic challenges that have plagued the industry. If its model proves both financially and operationally sustainable, it could mark a significant step forward in making local, resource-efficient food production a reality. With Norway’s backing and a growing awareness of the need for resilient food systems, the company’s efforts may help shape the future of indoor agriculture even as the broader industry reevaluates its approach.
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