Part 5/11:
High operational costs: Fully indoor, closed-loop systems rely on artificial lighting, heating, and resource input, often making them more expensive than traditional farming.
Dependence on energy and resources: Unlike open-field farming or greenhouses that utilize free natural sunlight and rainwater, indoor vertical farms consume significant energy, especially in regions with rising energy prices.
Poorly chosen crops and rapid scaling: Many startups focused on low-value or technically challenging crops or expanded prematurely without proven profitability, leading to financial instability.
Capital intensity: Large-scale indoor farms require heavy upfront investment, which many companies couldn’t sustain without quick returns.