Scott Massey is the Founder and CEO of Heliponix, an organization that provides consumers with the GroPod, an aeroponic appliance that can yield a full head of leafy greens on a daily basis, or sizable harvests of dwarf varieties of larger plants. Join Harry Duran, host of Vertical Farming Podcast, as he and Scott discuss the business model of GroPods, challenges Scott had to overcome as an entrepreneur and pivots Scott had to make in order to scale and sustain his business amidst a global pandemic.
Special thanks to our Season 1 Sponsor
IGS – https://intelligentgrowthsolutions.com/
Key Takeaways
00:01 – Scott expounds on his education and background, how he got involved in AgTech and hydroponics and the origin story of GroPod, his rotary-aeroponics appliance
15:41 – Scott speaks to the importance of understanding consumer habits and breaks down his business model
25:32 – Scott talks about the vital role that form, function, design and aesthetic play in vertical farming
31:51 – Scott dissects the impact the global pandemic has had on his business, his thoughts on scaling up and sustainability
38:27 – Challenges and obstacles Scott has had to overcome as an entrepreneur
46:08 – Scott talks about what excites him the most about the future of AgTech and a tough question he had to ask himself recently
50:18 – Scott speaks to what the future holds for GroPod
54:53 – Harry thanks Scott for joining the show and let’s listeners know where they can follow and connect with Scott and GroPod
Tweetables:
Links Mentioned:
GroPodOfficial YouTube Channel
Intelligent Growth Solutions
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Mentioned in this episode:
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Speaker:We are now in this advanced IoT automation age. Why can't we make the point
Speaker:of consumption the point
Speaker:Welcome to the Vertical Farming Podcast, weekly conversations
Speaker:with fascinating CEOs, founders, and agtech
Speaker:visionaries. Join us every week as we dive deep into the
Speaker:world of vertical farming with your host, Harry Duran.
Speaker:Vertical Farming Podcast, welcome back, episode 10. If you're new to the show, this
Speaker:is the podcast where we interview fascinating CEOs and
Speaker:founders of some of the leading vertical farming companies from around the world.
Speaker:In case you missed last week's episode, I had a great conversation
Speaker:with Andrew Carter of Smallhold, diving deep into the world of
Speaker:fungi, specifically mushrooms. If you haven't listened to it, I
Speaker:highly recommend you check it out, episode 9. This week I have the
Speaker:privilege of speaking with Scott Massey. Scott is the founder and
Speaker:CEO of Heliponics, an organization that provides consumers
Speaker:with the GrowPod. It's an aeroponic appliance that can yield a full
Speaker:head of leafy greens on a daily basis, or sizable harvests of
Speaker:dwarf varieties of larger We discussed the business model of
Speaker:GrowPods, challenges Scott has had to overcome as an entrepreneur,
Speaker:and pivots Scott made in order to scale and sustain his business
Speaker:amidst what's happening with the global pandemic. It's fascinating
Speaker:for me to have a discussion with Scott as he is a first-time CEO,
Speaker:and we talk about some of the challenges of growing the company and some of
Speaker:the things he's had to learn along the way. One of the new reviews we
Speaker:received recently was from Dr. EVS. He or
Speaker:she says, from Sweden, a new podcast addressing a rising
Speaker:industry, a nice balance of facts and people. Thank you so much for
Speaker:that kind review. If you're enjoying this episode or past
Speaker:episodes, I'd love it if you leave a rating and review at
Speaker:ratethispodcast.com/vfp.
Speaker:Okay, so let's get into this conversation with Scott. So Scott
Speaker:Massey, co-founder and CEO of GrowPod, thank you for
Speaker:joining us on the Vertical Farming Podcast. Thank you for having me. Huge fan of
Speaker:the show. Thank you so much. I know we were connected
Speaker:through, uh, was it— no, I'm trying to remember now. Who was it that connected
Speaker:us through email? I want to say it was Herb Kliegerman at iGrow
Speaker:News. Yes, that's right. He's— yeah, he's a great guy.
Speaker:Yeah. And so I thought it would be helpful, as always, this
Speaker:show has grown out of my interest and fascination with all things vertical
Speaker:farming, so just finding out what people are doing in the space has been
Speaker:fascinating and interesting. And one of the episodes we have coming up with
Speaker:is with Virginia Amory of Beta Hatch, and she's doing insect farming. So it's
Speaker:just when you just think about the idea of vertical farming, it's not a
Speaker:one-size-fits-all, and it's something I'm sure that you've seen as well. So
Speaker:maybe just start with your interest in vertical
Speaker:farming. You know, can you trace that back to a specific time when that happened
Speaker:for you? Yeah, it was kind of a series of events that I think
Speaker:ultimately brought me to the private industry side, because I originally began in the
Speaker:research realm. I was a student at Purdue University. I
Speaker:graduated in 2017, that spring semester.
Speaker:But for those 4 years beginning in 2013, I studied mechanical
Speaker:engineering technology with an entrepreneurship minor. I worked actually
Speaker:in the oil industry for 2 of those years as an intern working on
Speaker:fluid control systems and really just optimization of
Speaker:mechanical designs of large industrial equipment. And the
Speaker:purpose of this equipment was to get liquids from point point A to point B,
Speaker:regardless if it was kerosene, diesel, biofuels, it just moved the liquid.
Speaker:And, you know, that translated really well into hydroponics, particularly
Speaker:my junior year at Purdue University. Dr. Cary Mitchell,
Speaker:which is a renowned lighting horticultural expert within the indoor
Speaker:agriculture space, he was awarded
Speaker:several grants from USDA, NASA, one of the agencies among
Speaker:others, to further research isolated spectrum of
Speaker:light and its effect using plants. So the full
Speaker:spectrum, kind of like the fluorescent light bulbs ahead of us that appear white, that
Speaker:is the entire visible spectrum or most of it. And so what we were
Speaker:doing was specifically isolating individual wavelengths and
Speaker:analyzing how that affected photosynthetic rates by monitoring the amount
Speaker:of CO2 going into the chamber and oxygen leaving it. So
Speaker:if you ever heard of the McCree curve, or sometimes what's used to
Speaker:describe PAR, photosynthetic active radiation, or kind of the
Speaker:ideal wavelengths of light that plants need. We were essentially
Speaker:challenging kind of those statutes and understanding how
Speaker:wavelength and intensity affects plant growth and using those
Speaker:insights to ultimately contribute towards the decisions on lighting
Speaker:and irrigation and other aspects of growth chambers on the space
Speaker:station and actual— in human colonies that will in
Speaker:our lifetime be established on the moon and Mars, which is a really,
Speaker:really exciting thing to think about. in the future. But I wanted to
Speaker:find a way to apply vertical farming now on the short term.
Speaker:And that's basically the hand I had dealt with me. I was a student,
Speaker:I was at Purdue, I had maybe $5,000
Speaker:in my bank account at most earned from my internship. I was
Speaker:not primed to start a business by any means. But what I did gain
Speaker:from that research study was just a complete fascination, much
Speaker:like your own experience in reading the chapter in the book, in Abundance, about this,
Speaker:it's really opened my eyes to the industry. And I started applying to
Speaker:a lot of vertical farms. And I didn't hear back, or I would get
Speaker:responses that, you know, we're not really looking to hire, you know, structural
Speaker:mechanical engineers just yet. The industry is just early.
Speaker:Bottom line, there wasn't a whole lot of activity happening at that time in
Speaker:2016, '17. And I was also 21 years old
Speaker:too. So, I saw the likelihood of me just starting up a vertical
Speaker:farm out of nowhere as being close to zero or even getting
Speaker:funding for that. And that's when I think my kind of
Speaker:recognition of the limitations in the industry started becoming really apparent. I
Speaker:started thinking, okay, these guys aren't hiring, so the
Speaker:business probably isn't super successful yet.
Speaker:What are the limitations? And those more often than not came down to be
Speaker:yields, power efficiency, and maintenance. If you can
Speaker:resolve those 3 things, which pretty much defines your overhead,
Speaker:you know, profitability of your system, then that will tell you what works and
Speaker:doesn't. And so what we had came up with as students— when I
Speaker:say we, my co-founder Ivan Ball, who was my coworker on the study, he was
Speaker:the electrical computer engineer— we devised a system called rotary
Speaker:aeroponics that allowed us to increase our yields while reducing
Speaker:power consumption. And instead of thinking, what's the biggest
Speaker:form factor that this could be viable in? What's the biggest factory that we
Speaker:could get the best economies of scale? We instead asked ourselves,
Speaker:what's the smallest this can be and still be viable? So pausing
Speaker:there for a second, can you talk a little bit about the thought process? Because
Speaker:I think a lot of people initially coming into space and seeing the opportunities
Speaker:that exist at the industrial level
Speaker:and That possibility for growth for a small company is
Speaker:really exciting. I'm wondering what was going through your mind when you're thinking
Speaker:about almost like the opposite, about how do we make this smaller? One
Speaker:analogy I love, I love to make because it's, it's got
Speaker:similarities out the wazoo if you, if you really dig into it, is the
Speaker:ice industry. The ice historically, prior to like
Speaker:1900 roughly, when refrigeration was invented in the Industrial
Speaker:Revolution, you got ice once a year when it was cold enough outside.
Speaker:Climate dependency. And to me, that's not too different from the
Speaker:way agriculture is now. Of course, you can find Mediterranean climates that have those ideal
Speaker:climates year-round, but we are dependent on climate. Climate
Speaker:decides how much food there is. Climate decides how much food we can distribute.
Speaker:We are really slaves to climate. And the big breakthrough in the
Speaker:ice industry was refrigeration, but they put it in these massive warehouses, the
Speaker:bigger the better, bigger economies of scale. And what happens? They send
Speaker:out a perishable good. It melts along the way. People had ice
Speaker:chests. That was the precursor to the refrigerator, a box I would
Speaker:put a perishable good in to try and limit the perishability of the other
Speaker:things I put in the box. It was kind of this redundant cycle.
Speaker:There was a lot of people that thought, could it be a household level? There
Speaker:was a lot of people that said, no, that will never work. It's too expensive.
Speaker:It's too complicated. It's not feasible. All of those
Speaker:arguments at first were valid. They were absolutely Right. The first refrigerators were
Speaker:$20,000, adjusting for inflation. If you
Speaker:looked at the existing supply chain, why do I need a $20,000 machine when I
Speaker:could get a block of ice for a dollar? The economics don't make sense. But
Speaker:where did you get your ice this week? Did you go to the ice factory
Speaker:or did you go to the refrigerator? To me, all of the reasons why there
Speaker:were people who were skeptical about the in-home decentralized model,
Speaker:it's very easy to apply these over. I mean, You're simulating a
Speaker:climate. You're making it cold enough for water to freeze, right? And that was
Speaker:cutting edge in that industrial revolution, but we're in a biological age now.
Speaker:These LED lighting is so efficient. We can dial in the
Speaker:fertilization exactly what the nutrition needs to be. We can really
Speaker:eliminate a lot of these variables. So the technology of
Speaker:hydroponics is inherently portable. And when I make my— this next
Speaker:comment, I want to first lead with, I have immense respect for the vertical farms
Speaker:in the world. They're doing a lot of cutting-edge research that, you know, my
Speaker:introduction to the technology wouldn't have been possible had, you know, the work of
Speaker:others been done before us. But if you put it in a
Speaker:stationary facility, you limit its potential to scale. That was
Speaker:my observation on the industry. If we are now in this
Speaker:advanced IoT automation age, we have technologies
Speaker:that can replicate these environments decentralized without a skilled operator,
Speaker:present, why can't that be an appliance? Why
Speaker:can't we make the point of consumption the point of production? And I think just
Speaker:thinking about those points logically, if you can't tell, I like
Speaker:appliances. My hometown, I'm in Evansville, Indiana. At one point, this
Speaker:was known as the refrigerator capital of the USA. Whirlpool
Speaker:had its plant here, employed, I think, over 50,000 people at its
Speaker:peak. Louisville's only a few miles away. And that had
Speaker:GE's appliance manufacturing capital. So that obviously
Speaker:played a heavy influence on this. But I also, you know, as a young
Speaker:person realized it's a lot easier to build one small thing than to try and
Speaker:convince someone to give me funding for one big thing. And when it came
Speaker:down to getting funding, that was another critical aspect too.
Speaker:You know, I was young and had no capital to start the business. Well,
Speaker:universities have pitch competitions and they're amazing.
Speaker:They are the best thing I think a young person can ever engage in. It's
Speaker:like Shark Tank. You go up there, you give a pitch. Yeah, there needs to
Speaker:be some showmanship. You need to be able to woo people. I mean, if you're
Speaker:not making the audience interested, what are you doing? You're boring them. So
Speaker:we would compete at university-level pitch competitions to get grants, and
Speaker:these would be small, $5,000 to $10,000, sometimes even $20,000
Speaker:grants. But, you know, if you make that your job for a year as a
Speaker:young person when you're exclusively eligible, A lot of times these students are
Speaker:only for students. I mean, you can get like up to
Speaker:$100,000 in a year if you're aggressive enough and go after these different
Speaker:universities. So that's what we did. And we had to bring
Speaker:the prototype with us. You find that at these events, talking about
Speaker:something, that's great. Can you show it? That's better. So
Speaker:walking in with a prototype, no matter how crude it looks, but just to
Speaker:demonstrate the base functionality, it would win competition.
Speaker:So it had to be portable on that nature. Really, we
Speaker:just kind of adapted to the situation that we were in and, and
Speaker:developed a method that was able to obtain the resources that we identified as being
Speaker:critical for us to pay for patents and other foundational
Speaker:expenses that have much longer returns on investments.
Speaker:That's fascinating. And I think it sort of turns the model a little
Speaker:bit on its ear. When you think about startup companies, they initially think that I
Speaker:have to create an MVP, and then I have to go after angel investors, and
Speaker:I have to raise my first round. And, and the beauty of what you do
Speaker:is sort of boots on the ground. You know, you have to put a little
Speaker:bit more elbow grease in than a typical startup founder, but, you know, the
Speaker:beauty of that, of that approach is that everything that you— all the grants that
Speaker:you collect, you know, at the end of the day or at the end of
Speaker:the year, you're still left with full control of the company, which I think is,
Speaker:is something that's very important and something a lot of founders overlook.
Speaker:Absolutely. And a lot of founders, what I find is they put
Speaker:preconceived notations that entirely Artificially,
Speaker:it's self-manufactured why they can't be successful. You
Speaker:ask them, why aren't you moving prototype development along? Why don't you at the
Speaker:very least have one pilot customer? I mean, you can afford to put the
Speaker:prototype in a house and not charge them and just ask, do you
Speaker:like this? Is it terrible? These aren't horribly
Speaker:complicated things. I mean, even if it's your own home and your parents, I mean,
Speaker:that's at least at a minimum a starting point. Point to learn. But
Speaker:there's this strange misconception, and I'm not sure if it's this kind of
Speaker:social media era where we see the Facebooks of the world become, you know,
Speaker:unicorns almost overnight when they have those funding rounds. But companies
Speaker:like that had years of hardship where they had to refine their prototype before
Speaker:it was ever possible to do that. I firmly believe that no
Speaker:amount of capital will resolve fundamental flaws in business models.
Speaker:Those need to be and have addressed before you talk to those
Speaker:investors, because it creates expectations of liquidity events and
Speaker:profitability that if you're anything but delivering on those
Speaker:deadlines, I mean, you have failed your fiduciary commitment to the
Speaker:investors who bought into that company. That's a great comment.
Speaker:The way we actually were able to move to sales without having to raise that
Speaker:round. Now, I will say we're incredibly fortunate. The Purdue Research
Speaker:Foundation did make multiple investments into our company in the form of a
Speaker:convertible note. The first was a $25,000, and then second was a
Speaker:$50,000 later through their agriculture venture fund. But those
Speaker:were structured very similar as the other pitch competitions.
Speaker:But what I found out, and this might have been the most useful asset we
Speaker:had at the time— well, number one, I was broke. So paying for the
Speaker:prototypes, that was me. I was working night shifts delivering newspapers
Speaker:for the Exponent, which is the newspaper on Well, while I was
Speaker:working that 1 AM to 4 AM shift, I got to be pretty good friends
Speaker:with the managing editor of the newspaper. Every time we won, I made
Speaker:sure our article was in there. I didn't care if someone else wrote— they
Speaker:authored it. I don't care. That's not what I'm worried about. I just want the
Speaker:exposure. Please include mention of this accomplishment. And you'll
Speaker:find out the press copies each other like crazy. If you get one
Speaker:newspaper, you've pretty much got 5 or 10 because they just replicate it. That's great.
Speaker:And people start emailing you saying, hey, I know this is an early product. You
Speaker:educated them. They read the article. It's exciting. There's an experience happening,
Speaker:a bigger disruption. They feel like they're taking part in a revolution. People will start
Speaker:emailing you out of the blue and say, when this is ready, I want one.
Speaker:And we already had a list of 20, 30 customers before we
Speaker:graduated of just the people emailing me from that constant
Speaker:exposure. I didn't realize it at the time, but looking back on it,
Speaker:That was everything because then I was able— once we finally
Speaker:had an MVP working in our lab, I called these people up and it was
Speaker:just revenue. Give me a $500 deposit. It was a
Speaker:$2,000 appliance. Don't get me wrong, it's high priced at low
Speaker:volumes like this. It's very much a luxury appliance, but they put $500 down in
Speaker:deposit. You know, we built the trust in the publications. They knew we were
Speaker:legit. They were okay putting money into a business that had no cash flow history.
Speaker:Then I went and got a loan from Evansville
Speaker:Vectran. Actually, it's our utility company. They had a nonprofit
Speaker:that focuses on giving loans to innovative companies that would
Speaker:create high-growth jobs in the area. And so we were able to
Speaker:get a loan after that to finance the remaining inventory.
Speaker:And then we built everything ourselves in a garage and delivered the
Speaker:product to the consumers, collected the remaining $1,500 balance. And paid
Speaker:off the loan before interest was due. Only after we actually had
Speaker:paying users of the technology, we were able to listen what sucked, what was
Speaker:great, what was left to be desired on it. That
Speaker:feedback then set us up in discussions with investors. It was
Speaker:so much easier. I mean, you just speak to uncertainties unless
Speaker:you have actually put it in consumers' hands. So that's
Speaker:kind of how we started. And then from there, we were able to raise some
Speaker:capital. But basically that whole year of 2017
Speaker:was spent just competing at pitch competitions and refining the MVP to where
Speaker:it just worked, right? You can grow plants once, that's
Speaker:not really hard. Can you grow it 3 times in a row, 4 times in
Speaker:a row? Can you manage pathogen outbreaks? That's hard. Being able
Speaker:to get at least that replicatable success that you could do
Speaker:outside the lab, that was kind of the 2017 focus.
Speaker:August 2018 was then executing on those unit deliverables
Speaker:to those super early beta early adopters. So
Speaker:that's really how it started. Yeah, those early adopters are so important
Speaker:in any business. They're almost like helping you fund the business
Speaker:because they're taking a chance on you because it's something— it's a lot what we
Speaker:see in like the Indiegogo model and people— there's a
Speaker:bit of a roll of the dice because you're saying there's a chance that this
Speaker:product A, as promised, may not be delivered at all. And
Speaker:B, if it is delivered, then it may not be what was
Speaker:advertised. And, you know, I took a chance, but I think there's something to
Speaker:be said for those folks early on who believe in you and believe in your
Speaker:vision and are willing to take a chance on you because they can help validate
Speaker:and also give you that productive feedback that you mentioned on what's working
Speaker:and what's not, and which I think is so valuable, especially in those early cycles.
Speaker:I mean, I'm an engineer. So I think in functions, right?
Speaker:And to me, it seems obvious. Does the function improve the growing performance?
Speaker:Therefore, it improves the overall experience for the consumer. But until you
Speaker:understand that consumers buy emotions, not functions, you
Speaker:can just spin your wheels in place all day. So being able to actually ask,
Speaker:well, why did you buy this? You don't even know who I am. In fact,
Speaker:I had a funny story. There was one guy that lived in a neighborhood in
Speaker:Indianapolis. It's a little rougher. And I get there to deliver the device out of
Speaker:the back of my car. I didn't have a delivery vehicle. I had a very
Speaker:sorry-looking trailer on the back, dented up. And, you
Speaker:know, I pull this, you know, big appliance out. I actually called my
Speaker:co-founder and said, if you don't hear from me in an hour, call someone.
Speaker:And I knock on this guy's door and this guy's like, who are you? I'm
Speaker:like, oh, I'm Scott. I got your GrowPod. He's like, great. Just put it right
Speaker:there on my porch. Just put it there. I'm like, sir, Early adopter, white
Speaker:glove delivery experience. I'll do everything. I don't want it. Just put it on the
Speaker:porch. Like, huh, okay, well, I'm not gonna fight you, but
Speaker:here's my card. He sees the card and goes, oh, founder. I just thought you're
Speaker:an intern. And, uh, the guy tells me, let me tell you why
Speaker:I bought this. I'm diabetic and my doctor said I need
Speaker:to start eating better or I'm probably gonna die sooner.
Speaker:Pick one. And he had family members that were vegans. that were also— I don't
Speaker:know if they were diabetic, but indicated that there were similar health things going on,
Speaker:and that since they switched to mostly plant-based diet, they were a lot
Speaker:healthier. So this individual wasn't looking at it from the gardening
Speaker:experience or the better tasting food. It was
Speaker:borderline a medically influenced— I'll say it, it was a medically influenced
Speaker:decision to have higher quality food. When you start looking at this as an
Speaker:ROI as to investing into your health, It's a really
Speaker:immediate sell to the individual, and I think that's a
Speaker:really important branding consideration to take into account as
Speaker:volumes are small and productions are low and things are more expensive in their
Speaker:earlier stage. So can you talk a little bit about the model you
Speaker:decided on when trying to figure out what exactly the unit was going to
Speaker:be able to grow? You know, there's variations of what you can grow, and
Speaker:obviously the listener can see the examples on the website and see the video that
Speaker:you've created there as well. But how were you thinking about how much variety
Speaker:you were going to allow Given the constraints that you had and the space that
Speaker:you had to work with? Us, you know, we oftentimes use the phrase
Speaker:Keurig or Nespresso for food, kind of describe the
Speaker:platform. And that's the goal— have a platform and a
Speaker:database, an encyclopedia of different types of crops that you
Speaker:don't even know what they taste like. You're not in this climate, you've never even
Speaker:had these plants in your estate before, and now you can have it in your
Speaker:kitchen grown autonomously. So We knew early on that
Speaker:a big aspect of the value proposition was varieties, and keeping
Speaker:ourselves as open-ended and configurable as possible was
Speaker:critical. And there's actually lots of instances of that in agriculture. If you look
Speaker:back to like the John Deere plow or the very first tractors that were unveiled
Speaker:in the field, having variable spacing tire tracks to
Speaker:accommodate different types of crops was a huge, huge aspect
Speaker:for farmers because Really, the only thing you can do is just listen to the
Speaker:individuals. And I would hear everything. I would hear expats that maybe came from
Speaker:Korea and they wanted bok choy and specific types of herbs that they missed from
Speaker:their diet. Multiple instances of like that. Some people wanted ornamental
Speaker:flowers, things like marigolds, to get primed for their gardens. So we just learned
Speaker:early on that the system needed to be configurable, that we could ask the
Speaker:user, what do you want to grow? And then build our offering around
Speaker:that. But really our main limitations are what we can't grow. We don't do
Speaker:trees, so anything that takes a really long time, I mean,
Speaker:you can, but it probably isn't feasible or financially
Speaker:viable to do so whatsoever. Anything with a woody stem gets
Speaker:tricky. Vine crops or anything that's just massive and isn't
Speaker:compact doesn't really do well. So what grows in a greenhouse is
Speaker:usually a good indication as to what can grow well inside of a grow pod.
Speaker:And did you Did you find that you were looking to partner
Speaker:with either the folks who were creating the seeds or
Speaker:working on new variations of hybrids? You know, there's a new generation of
Speaker:crops that are being created that can actually— are made to fit in, you know,
Speaker:smaller batches of tomatoes, for example, cherry tomatoes that are more
Speaker:closely dense together. So did you have to go out and see what was
Speaker:happening in the world of small produce, I guess, so to speak? You know,
Speaker:now, yes. That's something we're very much so focusing on
Speaker:now. And that's, I got to tell you, an exciting area as a whole, because
Speaker:what is possible to grow in a greenhouse today will be very
Speaker:different 4 years from now. I'm not sure if it might even have been on
Speaker:one of your podcasts. Someone said, you know, we've had, what, 10,000,
Speaker:12,000 years to perfect agriculture in the soil. And it's like the last
Speaker:15 to 30 years we've been going indoors. There's— we haven't
Speaker:even scratched the surface of what's possible as far as selective breeding on
Speaker:crops. But early on, no, I wasn't. In fact, I'll tell you on
Speaker:some of the mistakes I made, you're gonna laugh. You're gonna think, wow, this is
Speaker:an engineering mistake. When we started supplying the seed pods initially,
Speaker:I gave people links to Amazon accounts to buy their fertilizer and
Speaker:said, hey, here's your vendor, buy it from them. And everyone's like, whoa, whoa,
Speaker:what is this? Another purchase? And I was like, yeah, it's cheaper
Speaker:there. If I buy it, I'm small volumes, I'm just gonna put them in small
Speaker:bottles, raise the price to get my margin, and then send it to you.
Speaker:Is that what you want? The answer was yes. The answer was, I want
Speaker:one box, and I don't want anything outside of this one box,
Speaker:and I don't want to have to even know what's really in the box. I
Speaker:don't want to know about macro and micronutrients. I don't want to know about
Speaker:calcium. I don't want to know about any of that stuff. I just want it
Speaker:to work. And that's when I realized this is a really unique
Speaker:experience because by enabling a non-expert on the technology,
Speaker:you're also making them dependent on your subscription offering. The likelihood
Speaker:of them branching out from that when they don't know how to is essentially
Speaker:zero. So it took those learning experiences to learn what my
Speaker:customers wanted to start then looking at the varieties. And then
Speaker:eventually, you know, we learned that a huge value proposition was getting seeds that they
Speaker:would have never had access to, some of those cutting-edge varieties that
Speaker:the general public as a whole doesn't have access to, that you sometimes need
Speaker:special relationships and licenses to even access some of those
Speaker:varieties. So it's been a learning experience for us, and it's, it's really
Speaker:exciting to see what direction that's moving towards. That's fascinating.
Speaker:It just speaks to what we were touching on earlier, the fact that you're getting
Speaker:this feedback and you think you have a preconceived notion about what it is that
Speaker:they want, and in your mind you thought you were doing something beneficial for them.
Speaker:But it also speaks to something we see, for example, on our podcast
Speaker:production side, like people want a done-for-you service. Like, they want to
Speaker:know like all the different aspects of it. They want to know what's
Speaker:involved, but they don't want to do it. So it sounds like a lot like
Speaker:for these folks, the whole allure of an
Speaker:offering like this is the fact that, to that gentleman's
Speaker:point, literally like he felt like if he— even if he left it on the
Speaker:porch, he could just plug it in and it would just do its thing, which
Speaker:is, which is I imagine the expectation for a lot of folks and the selling
Speaker:point too, because sort of like know that they don't have to Continuously
Speaker:maintain it, which is something that, you know, not everyone— most people do not
Speaker:have the green thumb, right? Yeah, and, and this is actually another reason why
Speaker:we go direct to consumer. If the value proposition of indoor agriculture is
Speaker:better tasting, more nutritious food, has, you know, essentially no
Speaker:supply chain to get there, then we need to be hearing consumers'
Speaker:feedback on that to actually validate those claims. Are they actually saying, yeah,
Speaker:this tastes better, I would like to buy more of this? Again, I have a
Speaker:lot of respect for vertical farms, but I would also make the comment that
Speaker:grocers are the primary beneficiary in most vertical farming
Speaker:models. Unless that grocer is just selling lettuce off the
Speaker:shelf, which hasn't really been seen yet,
Speaker:or to the best of my knowledge, I could be wrong. I hope I'm wrong.
Speaker:Unless that happens, the grocer is going to do what's predictably in their best
Speaker:interest and just let the produce sit on the shelf a little bit longer. It's
Speaker:just lettuce that lasts longer, has, you know, longer shelf life.
Speaker:Until that consumer knows it's coming from a vertical farm,
Speaker:there's a severe disconnect between the two. You know, one company
Speaker:that I think is interesting is Infarm. You know, they've been expanding pretty quickly.
Speaker:I haven't actually met any of the founders in that company. They're based in Europe.
Speaker:But in just the past year, they've— you know, I'm just kind of
Speaker:saying what I've read in these articles. None of this has been validated, but it
Speaker:looks like they've raised upwards of hundreds of millions of dollars, yet they're also
Speaker:scaling with major food retailers. Now, Infarm's not
Speaker:the first company to do remotely deployed container growing system.
Speaker:There's been a few of those companies out there. Now, what they do differently though
Speaker:is the consumers can see it, and it's, it's like a rotisserie chicken.
Speaker:Rotisserie chickens are sold at a loss in grocery stores, but you hear it
Speaker:sizzling. Oh yeah. You see it. Oh, the smell. You can taste
Speaker:it before you've even eaten it, and suddenly you're buying twice as much food as
Speaker:you came in to get before because you're hungry. It induces that just,
Speaker:you know, human reaction. It's really innate in us. Watching a plant
Speaker:grow, something beautiful happens in that, how an individual can
Speaker:associate themselves to it. And I think companies that understand
Speaker:that well are like IKEA. You know, there's examples of IKEA
Speaker:giving people crates and they're like, how much is this worth? Like, I don't know,
Speaker:a dollar? Yeah. And then they give them a few wood slats, a hammer and
Speaker:nails, they make it themselves, and suddenly it's a $5 crate. When you
Speaker:imprint your mark on it, you have that maker
Speaker:experience. You really drive the value of it being custom
Speaker:to you. Yeah. And I had a conversation with Andrew
Speaker:Carter of Smallhold, and they're doing mushrooms, and they're doing the displays
Speaker:in the retail stores and in the units and in the restaurants. And, you know,
Speaker:they're beautiful and they're nice to look at, and They're definitely like a selling
Speaker:point, because people come in and they see that and they're just like— it also
Speaker:educates people as well. And I think, you know, obviously, there's a huge window on
Speaker:your unit as well. So can you talk a little bit about how you started
Speaker:thinking about form and function and design and aesthetics
Speaker:as well? Because it seems to be an important part of the product. Thank you.
Speaker:Thank you for asking that. Because that's a conversation I think that does not happen
Speaker:enough in this space. There's a whole suite
Speaker:There's countertop models, which are
Speaker:largely decorative, but, you know, there is instances of them producing enough
Speaker:that it could be considered maybe useful in some circumstances.
Speaker:But when you don't control the environment around it, you're not regulating humidity,
Speaker:temperature, and other factors, you're going to get limited yields, and you're also going to
Speaker:be subject to low humidities in the winter. Like, that's going to
Speaker:adversely affect your plant growth. So being able to actually have a
Speaker:sealed environment, that is a huge distinction of a
Speaker:self-contained device. Can it regulate climate inside of its chamber?
Speaker:Check. That kind of separates, in my mind, systems that can
Speaker:operate uninterrupted throughout the year from the ones who cannot. Now, the
Speaker:ones that actually have the self-contained environmental control
Speaker:function, look at refrigerators. Perfect example.
Speaker:There's the under-the-counter model, so it's going to abide by the footprint of a dishwasher.
Speaker:It's going to fit under, meaning it's 34.5 inches tall, typically a
Speaker:24-inch width and depth. You're going to see some variability in
Speaker:that in different markets, just like how Europeans would have a different outlet size. They're
Speaker:going to have different counter heights and depths. But still, you know, it's
Speaker:constant throughout Europe. These things, like, once you understand these standards,
Speaker:they're unchanging. For whatever reason, I can't really understand it, there's a
Speaker:lot of people who've gone really close to those dimensions. But
Speaker:not exactly there. For whatever reason, there's been a disconnect
Speaker:with the appliance industry. Well, I say for whatever reason, it's difficult,
Speaker:you know, working with those sort of manufacturing supply chains. A lot of it's
Speaker:in Asia, especially right now. It's, you know, July 23rd, there's a
Speaker:pandemic ongoing, and that's disrupted many businesses,
Speaker:ourselves included, in some of our supply chain dependencies. But what we wanted to
Speaker:do was make it like an appliance. You already
Speaker:referred Yeah. And think of like a Thermador wine cooler. It's
Speaker:beautiful stainless steel, it's sleek, it matches the kick
Speaker:plate, it's uninterrupted, it's continuous, it's, it's just
Speaker:seamless in your kitchen. It matches the stove, right?
Speaker:That's the commonality here. You grow your food, then what? You prepare it on
Speaker:what appliance? And then maybe that food gets stored in a
Speaker:refrigerator or something, whatever it is, you know, there's a continuation in the
Speaker:kitchen where it It needs to look cohesive. And I mean, that's a fundamental tenet
Speaker:of any design perspective at all. So that was kind of
Speaker:our focus. We looked at existing appliance manufacturers, found ways to
Speaker:retrofit their design, and then build our product around
Speaker:the way appliances are designed. Someone explained this to me
Speaker:recently because, you know, the appliance companies, they're now looking at this industry. I don't
Speaker:know why this isn't getting more notice, but this is like potentially a monumental
Speaker:thing. If refrigerators or appliances start having the function
Speaker:of growing your food, the global implications of this
Speaker:supply chain disruption, it's almost incomprehensible. Of
Speaker:course, we're not going to be growing corn, soybean, or any other row crops in
Speaker:these. It will at most be a good complement to
Speaker:industrial agriculture for those things. But for your really
Speaker:highly perishable crops, there's no reason this can't be grown on the household level.
Speaker:Can you talk to what might be obvious for some folks who kind of look
Speaker:at the unit and then think about, you know, their own home? Obviously there's challenges
Speaker:in terms of a limited amount of real estate that you do have, so
Speaker:it might behoove you, if you haven't done so already, to start working
Speaker:with home development companies, right, who are building out
Speaker:units from scratch. And have you thought about that relationship? And
Speaker:can you speak to like that idea of people thinking it's beautiful, but I
Speaker:I literally don't know where I could put it. Right. Yeah. So we've had
Speaker:people, as its own under-the-counter appliance
Speaker:in its current embodiment right now, being standalone, we've seen
Speaker:people put it where they have available space. So sometimes that's the maid's
Speaker:closet next to the washing machine, where it's a little less out of
Speaker:sight than we would have preferred. Other times it's been in basements and garages
Speaker:and pretty far out of sight. But, you know, they're still growing. operating
Speaker:from it and having a great user experience. And other times it's in the kitchen
Speaker:and it's in that under-the-counter spot. We've had people actually make those
Speaker:modifications or luckily had available space that we could kind of
Speaker:go into. And to your point, it's, it's a challenge. You have to convince a
Speaker:user that this 4 square foot in your home would be
Speaker:better used cultivating plants than serving any other purpose.
Speaker:And if you look at our demographic, people in high
Speaker:urban densities and climates where they cannot grow, that can
Speaker:be a hard challenge to get across sometimes to explain
Speaker:that, hey, in this apartment, that's maybe 1,000 square feet, you're paying how many thousand
Speaker:dollars per month, right? The opportunity cost goes up. But
Speaker:what I can say now is, you know, kind of back to the appliance companies,
Speaker:we're aware of who the stakeholders are that are necessary in our industry. And,
Speaker:and what I foresee is a merger of sorts, that I think will
Speaker:consolidate some of these appliances and help eliminate the need to have a
Speaker:standalone device. I think that is a critical adoption
Speaker:factor for this to reach a mass market and really kind of diverge from its
Speaker:current niche status. Do you see an opportunity or is there any
Speaker:interest in using all the work that you've done? Because when you think of
Speaker:refrigerator, you can think of maybe a small leap to commercial refrigerator. So
Speaker:do you think about that sometimes, maybe smaller restaurants who could see A
Speaker:double-sized unit of this or something that would fit in their space? That's a few
Speaker:points there. So we have been in at least a restaurant owner's home
Speaker:before and also several schools. So those beta models, we actually
Speaker:donate them all once they've kind of reached their lifecycle. Most of those were hobbyist-grade
Speaker:components on the sensors and stuff, so they weren't really even designed to work this
Speaker:far, but they still worked to limited capacity. So we gave them to schools
Speaker:so they could just kind of have the charitable learning experience associated with it. There
Speaker:are some in the space that focused only on schools, and their value
Speaker:proposition is very different. It's not necessarily yield data. It's
Speaker:more so maybe like interaction, visibility,
Speaker:maybe if there's enough plants for everyone to hold and kind of dissect sort of
Speaker:thing. It's a slightly different performance grade. Now, the
Speaker:pandemic shut those down. Those who had schools and
Speaker:restaurants and businesses as their clients are having a really Really
Speaker:hard time right now. And I'm not going to pretend that, you know, we
Speaker:made this decision to go directly to consumers in anticipation of any, you know,
Speaker:global pandemic happening. But I'm really glad we made the decision
Speaker:we did because I'm not uninterrupted. In fact, we're having increased demand
Speaker:because more people want contactless food. I mean,
Speaker:just China is a perfect example. The amount of people that use meal
Speaker:deliveries there prior to the pandemic This is an anecdotal
Speaker:assumption. I haven't done the research in depth yet, but I understand it to be
Speaker:maybe 1 in 4 people used food delivery there, and now it's like
Speaker:90%. Wow. That's like 1.5 billion people. What
Speaker:percentage of the world just switched to virtual food deliveries? And what's
Speaker:the one food item that's really hard to ship because it's perishable? It's produce.
Speaker:So, I mean, if growing produce in the home can close that gap and we're
Speaker:going in this irreversible and inevitable transition to
Speaker:food digital fulfillment. To me, I think it complements that model
Speaker:really well. To your point about scaling up, something interesting
Speaker:about the ice industry analogy is that there was never a
Speaker:single ice factory that sold a refrigerator, and there wasn't a single
Speaker:ice harvester that made an ice factory. They sometimes call that
Speaker:entrepreneurial Darwinism. I've heard that term before. They have a really
Speaker:hard time understanding how this existing infrastructure doesn't
Speaker:fit into this new model that's being proposed. It's— they just aren't
Speaker:compatible. So could we scale up? Absolutely.
Speaker:But we're really content with where our margins are now. There hasn't really been a
Speaker:need to do so. Now, that being said, are we opposed
Speaker:to licensing intellectual property and working with partners in commercial
Speaker:productions? Absolutely. I think it would be a great relationship.
Speaker:And that's actually a larger system is something that we've built internally
Speaker:and experimented with. So we could very well move into that B2B
Speaker:segment very soon. It's just a matter of ordering a little bit more
Speaker:material to make it taller, and that's it. The architecture,
Speaker:if anything, is overbuilt for a business because you
Speaker:have to be so much more autonomous and so much more robust and branded in
Speaker:your packaging to deal with consumers than you would to even do it in a
Speaker:business setting. How self-sustainable is it
Speaker:And what's the lifecycle? And is it
Speaker:sustainable in a way so that whatever software drives it or whatever maintenance would be
Speaker:required to keep it going year over year, is that some thought that's gone
Speaker:into like these later iterations of the models that it can actually run on its
Speaker:own and actually grow as you learn new things about how to
Speaker:improve the process? Yeah, absolutely. And I think we just got to thank the
Speaker:timing. Right when I was learning about the technology, LEDs were taking
Speaker:off and it was clear that they were just having such rapid leaps in efficiency
Speaker:that LED lighting was the future of indoor ag at the same
Speaker:time as cloud computing becoming widely available and
Speaker:obtainable to small companies. I mean, anyone, you don't have
Speaker:to be a computer scientist, can buy a Raspberry Pi microcontroller, you know,
Speaker:find an open source library and start hosting something on AWS and having
Speaker:low-level cloud-based IoT functionality. We were lucky that the
Speaker:stars kind of aligned right when we needed them to, to start implementing those
Speaker:sort of procedures on the system. So I'm sorry, if I can remember that
Speaker:question, it was maintenance and efficiency for sustainability? Yeah. And
Speaker:also when you think about software, it's typically driven
Speaker:by updates. So like every time my Mac, there's new updates for the Mac, you
Speaker:know, you can just run a new update on the Mac and you get the
Speaker:latest and greatest improvements. So we're cloud-based. So the device is
Speaker:constantly sucking in data, compressing that, sending it to the cloud
Speaker:algorithm executes stuff and then we're able to learn from there. So it's a
Speaker:continuous process. I mean, we're on the consumer's Wi-Fi just like their Nest
Speaker:thermostat is. And there's ways you can compress data over periods of
Speaker:time and minimize the amount of times that's pinged. But we're on home Wi-Fi.
Speaker:So, you know, data usage isn't really a concern as long as you're not reducing
Speaker:their bandwidth speed or anything like that. But as far as
Speaker:sustainability, that is a great question because that is A
Speaker:very legitimate criticism of this industry. If your power bill
Speaker:to grow your vegetables is bigger than the grocery bill for those same
Speaker:vegetables, you're not helping anyone. I mean, you're, you're arguably
Speaker:contributing to climate change. You're probably making the situation worse
Speaker:by finding this really energy-intensive way to obtain your vegetables.
Speaker:And that was a core aspect of our design for rotary
Speaker:aeroponics. We discovered that if you rotate Right. When you elevate plants on a
Speaker:vertical tower, you number one get cylindrical growth. The
Speaker:plants radiate out in every direction, which means the surface area— if you
Speaker:think of the surface area of a cylinder, it's expanding as the plants grow.
Speaker:The canopies aren't competing for space like they are on
Speaker:2-dimensional tiers. They're irradiating out. They're
Speaker:encouraging mutual growth among one another. And then you have
Speaker:the issue of lighting. Okay. 360-degree
Speaker:tower, how are you going to illuminate that? Are you going to put lights on
Speaker:all 4 sides? We tried that. It doesn't work because it's
Speaker:really bright and consumers don't like staring into the sun. It
Speaker:hurts your corneas. Yeah, you're going to see black spots. So taking in those
Speaker:kind of soft consumer points like light pollution and noise are very
Speaker:important when designing your lighting system. And then
Speaker:if you're only going to illuminate half of it, how do you get light on
Speaker:the back part of that tower, you rotate it. Hence the birth of rotary
Speaker:aeroponics. So for us, it was optimizing that power efficiency
Speaker:and also optimizing that yield to overall improve that system.
Speaker:So what we've seen is a pretty substantial increase in the overall
Speaker:grams of produce per kilowatts of hour going in. Note that I'm using
Speaker:kilowatts of hour of total power for the entire system.
Speaker:That means lights, that means your pump, your irrigation. Don't
Speaker:look at just the photons, like the lights. That's—
Speaker:you could say the HVAC probably consumes more power on most
Speaker:systems than a lot of even just the lighting does. You have to look at
Speaker:the complete system's power consumption. A lot of vertical
Speaker:farms I've seen will use what they pay per
Speaker:kilowatt-hour to say we use, you know, $2,000 worth of
Speaker:power per month. Well, okay, that— I need to
Speaker:know what you're paying per kilowatt hour, because
Speaker:citizens in the United States on average pay about 13 cents per kilowatt
Speaker:hour of energy coming through. Farms can get reduced
Speaker:agricultural energy subsidies and pay a 10th of a cent per
Speaker:kilowatt hour. So you have to be really careful to look at how
Speaker:these performance variables are being quantified to truly understand
Speaker:a comparative efficiency across systems. Yeah, it's an important distinction to
Speaker:make. And I don't know if it was intentional, but your comparison to
Speaker:rotisserie chickens sort of came full circle again. Yeah. With the
Speaker:rotating tower, I think. So Scott, can you talk a little bit
Speaker:about the challenges as an organization and as a
Speaker:young CEO? You know, what are some of the things that you've had to
Speaker:deal with? Because again, this is not only are you building a company, but you're
Speaker:also now you're responsible for growing a team. And so I'm curious as an entrepreneur
Speaker:myself, like what are some of the things you think about, about, you know, You
Speaker:did have your co-founder, but then who were the first people you need to bring
Speaker:on the team and maybe some of the bumps along the way? You know, there's
Speaker:a good book called Good to Great, and there's kind of
Speaker:those 3 variables: humble, hungry, and smart, and in that
Speaker:order. And that's what I try and practice as much as I
Speaker:can myself, and then also look for individuals that try and do
Speaker:that. So, I mean, humble, number one. I have gone to
Speaker:pitches, you know, I had I had to stand up and speak if we're going
Speaker:to compete for funding. We would have had no money otherwise. When you're in
Speaker:that early concept stage, you're going to find out that some of these
Speaker:research reports you may have even read from a university and scholarly source are
Speaker:wrong. You might find out that certain
Speaker:ranges of pH that plants grow in might be completely different than what you've
Speaker:read because what you're practicing is different than what was done in a
Speaker:laboratory or there's other variables What I'm getting at is you're going to find out
Speaker:that a lot of your assumptions were wrong early on. And the worst thing
Speaker:you can do is marry yourself to one of these things, to think that a
Speaker:certain technology is better than one another for some
Speaker:preconceived reason, or present a statistic that's
Speaker:outdated, or you might find out later is wrong. You just need to be
Speaker:accepting that you will absolutely be wrong. The only
Speaker:question is just how and what was it. That you were wrong about and then
Speaker:correcting it as you go and being able to admit that. I think that can
Speaker:sometimes be a hard thing for some people when they're also trying to
Speaker:prove they have to stay relevant and they're trying to stay
Speaker:competitive in that element, but you need to be realistic that
Speaker:if the results you're seeing are different than what you've been reading and have studied,
Speaker:then you need to identify the solution to that and you also need to enlist
Speaker:expertise. I mean, we're talking about chemistry Biological processes. This
Speaker:isn't subjective. This is a science that needs to be researched.
Speaker:You know, after humility, just being able to put your ego aside and focus on
Speaker:the bigger goal, hunger. You know, I've met a lot of
Speaker:people that were really established in their careers. Some we've worked with, some we haven't.
Speaker:But I mean, is this just another project? Is this a leapfrog from one
Speaker:startup to the other? Or do you really want to put a dent in food
Speaker:insecurity? Like, do you want to be a part of the solution that's going going
Speaker:to feed our grandchildren, if you genuinely believe that the food system
Speaker:could be greatly improved to better the world, then welcome
Speaker:aboard. We'd love to have you. Otherwise, if you don't have that fundamental
Speaker:passion, and passion cannot be taught, it's born,
Speaker:it's in the individual, then I can't influence you.
Speaker:If that passion is financial, if it's a monetary thing, if you're in it
Speaker:to get rich, I mean, there's money to be made, but it's not be
Speaker:quick. I mean, that's what I think has been a learning experience as a young
Speaker:person, that sometimes there's a preconceived notation along with any
Speaker:business industry that someone's going to get rich quick when that's not the case. It's
Speaker:going to be years of heartache and hardship before you ever
Speaker:even build something that remotely resembles value. And then the
Speaker:last thing is smart, and that's often the last thing I'm looking at.
Speaker:Are you tactically capable of doing what I need you to do.
Speaker:If you are, then great. You can be a contractor and you can do
Speaker:specific jobs. If you go beyond that and you're humble and
Speaker:hungry, then we could talk about employment. And I've made
Speaker:mistakes. You know, I think I brought on individuals that didn't fit that and we've
Speaker:had to make corrections along the way. But I've also learned that a
Speaker:small team of people who fit this mold can
Speaker:achieve more than a large team can. Because kind of going back
Speaker:to those preconceptions, like those notations where I can't do this, I haven't been funded
Speaker:yet. Yes, you can. You probably just haven't found a
Speaker:cost-effective sponsor. You haven't looked for other methods to do it.
Speaker:So just finding a small team that's very agile and
Speaker:quick, they're not afraid to make mistakes, but they learn from them even
Speaker:faster. I mean, that's what makes a small team as productive as what a
Speaker:team of 50 individuals or or hundreds of individuals can even do.
Speaker:Oftentimes, some of the bureaucracies I see surrounding hardware
Speaker:manufacturing, it's kind of shocking that they're able to make products at all.
Speaker:That's just me though. My experience is working with startups. I haven't really been in
Speaker:big corporate companies very much, but there's nothing
Speaker:wrong with being small if I can get to that. You don't need a big
Speaker:team. Automated financial tools exist. You don't really even know—
Speaker:you should be able to read a spreadsheet, but you don't have to know tax
Speaker:There's so many tools. It's easier to start a business now than it
Speaker:ever was before. Yeah. What was it like preparing for the
Speaker:TEDx talk and delivering it? You know, that was again, I think, another kind of
Speaker:cultural change for me because I was used to, hi
Speaker:sharks, here's my product sort of thing, to be a part of our
Speaker:mission. This is the revolution we're going after. And I would say the
Speaker:biggest word, if I could summarize it, is segmentation. You know, before,
Speaker:you know, people ask, what's good about it? I go, well, in the indoor ag
Speaker:industry, the power efficiencies aren't great and we're going to improve. I already lost them,
Speaker:right? No one cares about that unless you're an engineer in this
Speaker:space, right? But the ice analogy, you probably had a glass of ice
Speaker:with water this morning with your lunch that you get. And most people had
Speaker:no idea that there was such an evolutionary process that had to happen
Speaker:for them to have a refrigerator that just works, something that is, you know, a
Speaker:robot in the home. It just works. There's no emotional thing to it. It just
Speaker:works. It does what you need it to do. And framing ourselves
Speaker:as that same user experience and also making the audience aware
Speaker:of the greater inefficiencies of agriculture were things that maybe seemed a little
Speaker:obvious to me that I needed to segment ourselves in that
Speaker:same analogy. And that TED Talk, you know, it's, it's a lot more work than
Speaker:people realize. They really go through the iterative steps. Shout out to
Speaker:Wabash College for having me there. The, the gentlemen at that university were
Speaker:incredibly professional and made it very seamless and easy to get through.
Speaker:But it does require, I think, a little bit of self-discovery to figure out
Speaker:how you fit into this bigger scheme of things.
Speaker:Because, you know, again, if you're not creating a movement or a bigger platform that,
Speaker:you know, other things can be branched off, you're selling a widget, you know, a
Speaker:thing that, that kind of starts and stops there. Not a commodity,
Speaker:And it seems like it's an experience for you that
Speaker:would help you understand the power of storytelling.
Speaker:Absolutely. You know, one thing that I think kind of helped me early on learn
Speaker:a key aspect of public speaking was in my hometown here in Evansville.
Speaker:They have a cool program called Teen Court. So if a juvenile under the age
Speaker:of 18 commits a crime, they can go to juvie court or Teen Court.
Speaker:Teen Court, the jury is made up of all local high school volunteers,
Speaker:and prosecution and defense attorneys are actually high school students too. It's a real
Speaker:courtroom, a real trial, a real judge, up to 6 months house arrest and
Speaker:retribution. A number of other punishments can be thrown on. I think I lied
Speaker:about my age when I joined. I started as an 8th grader. But
Speaker:I was on the jury a few times, and then I was in the prosecution
Speaker:and defense. And another thing I realized kind of talking to the audience is,
Speaker:you know, when you hold up a piece of paper and it You're hiding behind
Speaker:it giving your speech, you know, you're talking at people, right?
Speaker:There's a difference between talking to people like what we're doing right now. I'm looking
Speaker:for feedback, like what you're not saying is just as important as what you are
Speaker:saying, your facial reactions. I mean, that is everything. And being able to actually
Speaker:look an audience in the eye and stop, maybe that person in the
Speaker:first row kind of squinted, they didn't hear what you said, you know, just those
Speaker:soft little touches can make the difference
Speaker:between That's awesome. What has you
Speaker:excited about the industry itself? And are there
Speaker:companies that you currently admire in the space also?
Speaker:Yeah, I think I already talked about a little bit, Infarm. You know, I think
Speaker:that's an interesting group. You know, again, I have never met them. I just kind
Speaker:of admire what I've seen watching from the United States, seeing this group
Speaker:solidify a lot of partnerships with grocers and actually
Speaker:benefit from the pandemic. And I don't mean that in an insensitive way, but
Speaker:people want locally sourced, fresh, clean food that they don't have to worry
Speaker:about exposure to an unnecessary amount of people.
Speaker:I think there was a statistic I read in like the National Resource Defense Council
Speaker:doing like a food waste analysis in the US that 20 people
Speaker:touched your head of lettuce before you ate it. I hope none of those people
Speaker:had COVID along the way or were transmissible, but that's a real and
Speaker:valid concern. That a consumer is going to have. And it seems like that group
Speaker:is talking the talk and actually walking it and showing that they can
Speaker:scale beyond that. And it's because, number one, they're decentralized.
Speaker:I believe they probably have an operator. I don't know the details of their system,
Speaker:but it's remotely deployed. There's not a full-time person
Speaker:just watching it. There's probably cameras in it. It has an
Speaker:IoT aspect that's inherently decentralized. A lot of the warehouses are
Speaker:having a hard time replicating it because it's not really a
Speaker:decentralized approach. It was very smart of them to invest in
Speaker:the aesthetics. And that's a new thing in the agriculture space.
Speaker:Your agricultural equipment needs to look good. People want to have it there. You don't
Speaker:want to be an eyesore. Think of like feng shui design requirements. If I
Speaker:can't see this growing, you know, it's just, it's a piece of plant
Speaker:in a clamshell. That's a good point. It's like, I heard another
Speaker:statistic statistic, like less than 1% of consumers know what hydroponics
Speaker:is. So, I mean, there's— that could be wrong, but it's
Speaker:not a lot, right? If you have to educate them on some branding on this
Speaker:thing, like that's a lot of time that people probably aren't gonna spend
Speaker:reading the label trying to understand. And on top of all that, those
Speaker:claims are highly regulated by the USDA on what you
Speaker:can and can't say, claiming that your produce is more nutritious or vice versa.
Speaker:I think those guys just do a great job not even having to explain it.
Speaker:It's obvious. I mean, it's freshness on demand. It's there.
Speaker:There's no question where it came from. There's no doubt in my mind. It
Speaker:can even be more expensive, but man, this whole thing, whatever it is, it's
Speaker:cool. I'm at least going to try this out of it. Yeah. They're selling the
Speaker:experience. Yeah. I mean, you're talking a $2, $3 head of
Speaker:greens or herbs. Like, consumers will buy that to understand what that
Speaker:experience is. And I think it has a lot to do with color. I think,
Speaker:you know, we're a very artistic people, like just animal. I mean, we see
Speaker:colors, you remember that. And I think the colors of the grow lights just
Speaker:does something psychologically that makes people really remember it. What's a
Speaker:hard question you've had to ask yourself recently? You know, I've rethought
Speaker:some of our supply chain's dependency on Asia. It's not that I, you know,
Speaker:really wanted to go to Asia, it's that a lot of industries have left the
Speaker:United States or the industries that remain are vertically integrated.
Speaker:I would have loved to have found an appliance factory here.
Speaker:This was it. I'm in Evansville. This building I'm in right now, this is an
Speaker:appliance engineering laboratory owned by old Whirlpool engineers.
Speaker:And GE, their Haier appliance research engineering office is right across
Speaker:the road there. So it's really close. These industries are vertically integrated. You
Speaker:can't just call up an appliance company and ask them to make 100 prototypes. It
Speaker:doesn't work like that. You have to go overseas to find a contract
Speaker:manufacturer that was in the business of manufacturing stuff,
Speaker:not a company that was in the business of distributing branded finished products, but
Speaker:someone that's willing to work with you at the earliest of stages.
Speaker:That was difficult, and we had to go overseas to find some of those sources.
Speaker:And to be honest with you, it's not that I regret that decision,
Speaker:but It would have been nice if I could have found closer, more
Speaker:domestic, and in hindsight, I would have been willing to pay a little bit
Speaker:more had I known that these sort of disruptions were going
Speaker:to happen. The good news is these are components, right? They're largely
Speaker:commodities. You can buy them from other people. There's no reason these things
Speaker:can't be corrected along the way. Well, Scott, thank you
Speaker:so much for sharing your story. It's really inspirational both as an
Speaker:entrepreneur and also as someone in you know, who's just getting their start in the
Speaker:vertical farming industry. I think the fact that you showed that even at a young
Speaker:age, you had the wherewithal to figure out how to bootstrap this yourself
Speaker:for that first year using the grants that you were receiving. And I think it's
Speaker:helpful for new entrepreneurs to realize that there's not one path in terms of
Speaker:getting funded and making those dreams that you have a reality. And
Speaker:so, I applaud you on that, and I'm wishing you like all the greatest
Speaker:success for GrowPod. And so, I'm wondering if just in closing, if you had a
Speaker:couple of thoughts about what the future holds for you and what you're excited about.
Speaker:You know, we've been able to identify some key stakeholders in this industry.
Speaker:You know, there's appliance companies, there's hardware. Hardware needs to be done
Speaker:right and it needs to be supported, and you need to have great expertise
Speaker:and an established brand that consumers will trust. So I see us
Speaker:having continued focus and hopefully some involvement with the appliance
Speaker:companies to work with that hardware element. We hope to continue working with
Speaker:seed suppliers, you know, the big agriculture companies. Companies have been
Speaker:pretty silent in a lot of cases as to what they're going to plan for
Speaker:vertical farms, yet we have this wildly massive potential
Speaker:market segment. So we're going to continue some of those relationship
Speaker:building and continue to have seeds brought in that aren't available to the
Speaker:larger public to drive a better user experience. And software,
Speaker:software, software, automating that experience. You don't want to get
Speaker:your hands dirty, you just want it to work like your Refrigerator. So automating that,
Speaker:that, that's everything from vision. We're talking even blockchain.
Speaker:You know, I sell you a pod, how's it grow? You know, it goes really
Speaker:deep into how sophisticated some of these algorithms can be.
Speaker:And I would say we're just on the cusp of some
Speaker:supervised machine learning. I would say the future is probably going to be
Speaker:outright artificial intelligence, probably looking at
Speaker:you as a whole, asking, Tell me about yourself.
Speaker:What's your culinary cuisine that you like?
Speaker:Do you like sweet things, bitter things? Learning about you,
Speaker:the individual, Harry, and then customizing the farm to what you
Speaker:want to eat before it's even grown. I really think that's the
Speaker:direction it's going to go. I foresee that data companies, tech companies like
Speaker:Google, Facebook, Amazon, who, by the way, are largely already
Speaker:in the indoor ag space will probably only become increasingly more involved
Speaker:to help facilitate all of those items I just mentioned. Yeah, and you
Speaker:can see increasingly in the hires of these companies, it's not
Speaker:just, you know, the standard roles of finance and
Speaker:marketing, but it's also machine learning, artificial intelligence, data
Speaker:scientists. You know, there's a lot of data to be crunched now. And I
Speaker:imagine there's no shortage of data getting returned back to you at
Speaker:HQ in Then how do you parse it? How do you analyze it?
Speaker:What do you do with it? I imagine those are questions you ask yourself on
Speaker:an ongoing basis. If I can add one thing though, you said in spite of
Speaker:being young. I would say thanks to being young. I could
Speaker:not imagine doing this if I had a family. If I had a wife and
Speaker:kid I had to support, I mean having gone 2 years without a
Speaker:payment, living at my parents' house, I wasn't just not making money, I was
Speaker:losing money. I was also putting personal money into it, right? In that time, I
Speaker:have so much respect for founders who have families and manage to do both.
Speaker:How they do it, I don't really know. But when you're young and you
Speaker:don't have these obligations and you can stay up till 2, 4 AM working on
Speaker:something you love, do it. Do it. The
Speaker:only person telling you you can't do it's yourself, and your university
Speaker:wants you to do it. Most of these universities have IP policies particularly
Speaker:towards undergrad students, you own what you create. It's not always the
Speaker:case. You should research that. But a lot of times that's the way it is
Speaker:and they'll give you cash. And it's not like they're just looking for a startup.
Speaker:It's marketing for them. This is their proof like, hey, here's an entrepreneur, come here
Speaker:to study business. It's not just an engineering school, right? They're missing out on
Speaker:a massive marketing opportunity to promote themselves as being, you know, kind of
Speaker:facilitating the entrepreneurial environment. So if you're young, now is the
Speaker:time to Act. Waiting until you're out of school is foolish. The resources are
Speaker:exclusively available to you in that timeframe. Take it while you can.
Speaker:Yeah, that's a great point and really a motivational point to close on
Speaker:to anyone that's listening and that is a young entrepreneur, whether in this
Speaker:space or any other space. Just kind of take advantage of this unique environment that
Speaker:we find ourselves in. And like you said, it's never been easier to start a
Speaker:company. And, you know, obviously you have to come in with some unique skill sets.
Speaker:And a drive, which is clear that you have, Scott, and I see nothing
Speaker:but good things for you ahead. So again, congratulations on everything
Speaker:you've done so far. Where's the best place for folks to stay connected with you
Speaker:and to learn more about GrowPod? Social media would probably be our primary channel.
Speaker:We're really active on Facebook, Instagram, Twitter, and LinkedIn.
Speaker:It is GrowPod Official. That's
Speaker:G-R-O-P-O-D Official,
Speaker:O-F-F-I-C-I-A-L. Look that up and you'll be able to find our
Speaker:company. The company name's actually Heliponics, but we really just
Speaker:focus on the product branded name GrowPod, hence the social media handle
Speaker:GrowPodOfficial. So give us a follow and you can see what we're growing.
Speaker:Thanks again, Scott, and we'll make sure all those links are available in the show
Speaker:notes. Have a great day. Likewise. Thank you so much for having me.
Speaker:Thanks for listening. To read the full show notes for this episode, which include a
Speaker:summary, timestamps, and any links mentioned in this episode, please
Speaker:visit verticalfarmingpodcast.com. There you'll find the
Speaker:information from this episode and any past episodes. And once again, if
Speaker:you're enjoying this show, please leave us a rating and a review at ratethispodcast.com/vfp.
Speaker:We'll be sure to read those out on future episodes. Until we meet again next
Speaker:week, here's to your health. Thanks for listening. To hear all
Speaker:past episodes and read the episode summaries, which includes any
Speaker:links mentioned in the episode, as well as a full show transcription,
Speaker:visit verticalfarmingpodcast.com. There you can sign
Speaker:up for our email list to be notified when new episodes are published.
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