Added by on 2016-11-09

Indoor farms can require significant investment to launch. But how much and how do you calculate these startup costs? Join us for a closer look at the numbers as we explore capital investments and some of the financing strategies that are making these projects possible. 0:00 How much liquid cash do you need on hand to start a Dunkin Donuts? 8:06 What are the items we need to consider when we are starting our capital budget? 9:30 Why we include cash reserves in our capital startup budget 11:49 Why we choose to grow with ZipGrow vertical plane production 13:50 Introduction to the system we are pricing today 17:46 Facility requirements 21:50 Why HVAC can be so tricky 24:25 Post harvest processing equipment 28:27 Cash flow reserves during the startup phase. How and why to bring operational expenses into the capital budget 32:19 The bottom line number for this system 33:16 In comparison to a typical Dunkin Donuts franchise 36:05 What are the most common approaches to financing an indoor farm, plus how to qualify for a bank loan 36:15 Venture capital for indoor farming? 40:43 Why equipment financing strategies are easier to qualify 43:27 Why we don’t recommend financing more than 50% of your capital budget 46:18 Wrapup and audience questions More info on these events: Related PostsInvesting in Indoor Farming (Replay) | Let’s Talk Indoor Farming!LED’s, HVAC, & Breakthrough Innovations | Let’s Talk Indoor Farming!Internal Rate of Return for Indoor Growers | Let’s Talk Indoor Farming!The Evolution of Indoor Farming | Let’s Talk Indoor Farming!Economics of Indoor Growing (Live) | Let’s Talk Indoor Farming!Vertical Farming, Plant Factory Market Shares, Strategies, and Forecasts, Worldwide, 2014 to 2020

Leave a Reply

Your email address will not be published. Required fields are marked *




  • Luke Hill 9 months ago

    Great Video guys. Thank you for sharing your expertise. Question; have aeroponics been considered in the business model?

  • Munawar Cheema 9 months ago

    Nate seems like a really likeable guy

  • Tim Enchanter 9 months ago

    Awesome info! Thanks so much!

  • jack wren 9 months ago

    Very informative video, thank you. I have many questions but main two are, can you really sell lettuce at $7 per lbs, if so who too? Is that 160k in starting cash flow financed or personal savings?

  • Precision Air 9 months ago

    Thanks for providing all of this information, it has been extremely helpful! After looking over the numbers I an curious, with these calculations I show the total annual expenses to be $214,500 before factoring in environmental costs (area of operation, etc) as well as rent. If we take the 1800 sq ft farm and we pay… $15 sq ft in rent, that is an additional $27,000 expense. With these numbers we show an annual gross income of 218,000(21,800*10) on 10 harvests. This does not cover our opex. Are you projecting more than 10 harvests annual in this system (lettuce) or how do we show profit at these numbers? If we scale larger do we show better opex and therefor better profitability? Thanks so much!


  • Mario Postini 9 months ago

    I also think it is very hard to get people to think about lettuce. We are talking about lettuce at $7 per pound, when lettuce from the salinas valley is much much cheaper. In areas where cheap food rules how do you frame the conversation?

  • Mario Postini 9 months ago

    Dr. Nate it's good to see you back in plaid.

  • gabriel escobar 9 months ago

    hi Dr Storey,I was wondering what do you think of growing fish and prawns in the same system,is it possible and is it a good idea if they are separated within the same system,thanks !

  • Jesus Alfredo DR 9 months ago

    Great video. Thank you guys for sharing this info!

  • Nathan Sitzman 9 months ago

    really appreciate all the information yall are sharing. keep up the great work.