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S2E14: Tobias Peggs - Discovering a More Resilient Food System through Vertical Farming
Episode 14 • 12th November 2020 • Vertical Farming Podcast: CEOs & Founders in AgTech and CEA • iGrowNews
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Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show co-founder and CEO of Square Roots, Tobias Peggs. Square Roots is an indoor urban farming company that connects people in cities to local, real food. In this episode, Harry and Tobias discuss the growing demand for a more efficient global food system. Tobias speaks to the importance his organization places on transparency and visionary thinking as well as future initiatives he and his team are currently planning. 

Special thanks to our Season 2 Sponsor

Ceres Greenhouse Solutions


Key Takeaways


01:34 – Harry welcomes Tobias Peggs to the show to share his background as a data scientist, the genesis of his company Square Roots, and the impact Covid-19 has had on the industry


08:17 – Tobias recalls the vertical farming landscape back in 2016 when he initially launched Square Roots and how his past experience helped him to scale his business


16:24 – The value Tobias and Square Roots place on transparency and forward-thinking


22:21 – Trends Tobias has observed from the overall AgTech industry, including collaboration between organizations and the role of technology and software


32:18 – The evolution of Square Roots’ Farmer Training program


36:52 – How Tobias has grown personally and professionally during his tenure at Square Roots and mentors who have influenced him throughout his career


43:38 – Tobias speaks to the differences in how Americans and Europeans receive and consume their food


47:27 – What is something Tobias has changed his mind about recently and a tough question Tobias has had to ask himself recently


50:33 – What excites Tobias most about the future of vertical farming and where listeners can learn more about Square Roots 


Tweetables:


“It became very obvious quite early that the world really needs this [vertical farming]. And that has acted as a very galvanizing and energizing focus through what, to your point, has been the craziest year any of us could ever possibly imagine.” (03:43) 


“Plants are not just widgets; they don’t just grow on demand. You need a person in there willing these plants to come to life.” (06:58)


“The average age of a farmer in the U.S. is fifty-eight. The average age of a farmer in countries like Japan is sixty-eight. You’ve got this demographic time bomb that is about to detonate on the food system. We need to find pathways for young people to enter the agriculture industry and that’s what we decided to tackle first at Square Roots.” (07:26)


“The wonderful thing is when you’re stressed in the software company, you stay stressed. When you’re stressed in the farming company, you just go wander around the farm for a half an hour.” (13:07)


“There are probably lots of parallels with the sort of green or alternative energy industry. We are all in it to solve a massive problem for the planet.” (23:14)


“Some days I do have to kind of stop myself because we are running at 150 miles per hour figuring all this stuff out.” (33:58)


“You don’t have to be a bloody nutritionist to figure this shit out. If it smells great, and it tastes great and it looks great, it’s gonna be good for you.” (46:39)


“There is a desperate need to figure out a more resilient food system where people are eating healthier food and doing it all year round. And indoor farming can be a big part of that solution.” (51:06)


Links Mentioned:


Tobias’ Website


Tobias’ LinkedIn


Square Roots Twitter


Square Roots Instagram


Ceres Greenhouse Solutions


Website | Facebok | Pinterest | Instagram | YouTube

See omnystudio.com/listener for privacy information.

Mentioned in this episode:

2025 Precision Ag Report by iGrowNews

2025 Precision Ag Report

2025 Precision Ag Report by iGrowNews

2025 Precision Ag Report

Transcripts

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igrownews.com/precision. The average age of

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a farmer in the US is 58. The average age of a farmer in

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countries like Japan is 68. You've got this demographic time

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bomb that is about to detonate on the food system, which is,

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you know, when these people retire, like, who the hell is going to grow all

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the food, right? We need to find pathways for young

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people to enter the agriculture industry. And that was

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what we decided to kind of tackle

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Welcome to the Vertical Farming Podcast, weekly conversations

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with fascinating CEOs, founders, and agtech

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visionaries. Join us every week as we dive deep into the

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world of vertical farming with your host, How are you doing?

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Vertical Farming Podcast, welcome back. Season 2, episode 1.

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If you are new to the show, I highly recommend checking out all the season

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1 episodes. We've had some great conversations with fantastic

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founders and CEOs. And now for season 2, we

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are taking this to the next level. I didn't think it could get any better,

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but it did, and it will. As a bit of a sneak peek, we have

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conversations coming up with leaders from Bowery Farms, Plenty, Unfold,

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greenhouse-solutions.com, and get started today on your

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greenhouse goals. To kick things off in grand style, this week's

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conversation is with none other than Tobias Pegg,

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CEO of Square Roots. For those unfamiliar with

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Square Roots, it's an indoor urban farming company that connects people in

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cities to local, real food. And in this episode,

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Tobias and I discuss the growing demand for a more efficient global food system,

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and he speaks to the importance his organization places on transparency and

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visionary thinking, as well as future initiatives he and his team are currently

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planning. Tobias takes us back to the vertical farming landscape in

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2016 when he initially launched Square Roots and

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talks about how his past experience has helped him scale this one. We learn

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about the value Tobias and the team place on transparency and forward

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thinking and the trends he's observed from the overall agtech industry, as

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well as the collaboration between organizations and the role of

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technology and software. We learn about Square Roots farmer training

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program and how Tobias has grown personally and professionally during his

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tenure at Square Roots. Couldn't think of a better way to kick off season

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2. I'm so excited to share this episode with you guys. If you have

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enjoyed this episode or past episodes, I'd love it if you leave a rating and

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a review at ratethispodcast.com/vfp.

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That's VFP for Vertical Farming Podcast. I'll make sure to read out those

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reviews on future episodes. So let's kick off season 2 with

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Tobias. So Tobias Pegge, co-founder and CEO of Square Roots, thank you

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for joining us on the Vertical Farming Podcast.

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Super happy to be here, thank you. So Tobias, just to date stamp where we're

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at, it's first week of October 2020, what many people

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would probably say is one of the strangest years on record

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so far. And just when you think things can't get any

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crazier, all you have to do is check your newsfeed. So I'm just wondering

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how the year's been for you, if there's a couple of words you could use

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to summarize what you've what you've been experiencing as a business

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owner and personally, what comes to mind?

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Intense. But also I think

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at the beginning of COVID

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if you look at it purely from the perspective of vertical farming or

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indoor farming or food systems, right at

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the beginning of COVID there was a very

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big affirmation that what we're doing, what everybody in the industry is

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doing is the right thing. On the one hand, we had

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supermarket shelves that were just empty. You couldn't even find

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staples to eat. And on the other hand,

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you just read stories every day of mountains

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of food being left in industrial fields to rot because those farmers

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couldn't get farmers safely to those fields to get the food out. I

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mean, it just really shone a spotlight on how fragile

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that industrial food system is. Not only is it terrible for the planet,

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in terms of pesticides and runoff and the impact of

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transport and the litany of issues

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goes on and on and on, greenhouse gases and all that stuff. But at the

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end of the day, it also turns out it's not a particularly resilient

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system. It's not guaranteed to get food on your plate in

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instances like this. And

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so I think what we're all doing here, building the

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infrastructure and the business models and the teams to enable

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a distributed farming solution that is

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able to provide quality local grown food,

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you know, very consistently in a very resilient way.

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Like, it became very obvious quite early that the

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world really needs this, and that has acted as

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a very kind of galvanizing and

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energizing focus through

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what, to your point, has been the

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craziest year any of us could ever

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possibly imagine. When did this vertical

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farming, indoor agtech, this idea of getting the

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food sourced locally to where people need

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it, when did these ideas appear on your radar,

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if you can think back? On my personal radar? Yeah. On your personal radar.

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Yeah. So I had an

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early social media analytics company. My

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background's tech. I'm an AI PhD and I sort of spent

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a bunch of my early career in Silicon Valley and had this early

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social media analytics company that was acquired by Walmart, of all people.

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And as part of those deal terms,

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I went to work at Walmart for 12 months. And to cut a long

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story short, while I was inside Walmart, I studied—

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one of the projects that I did was to study global grocery buying behaviors.

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And I sort of came at it from a data science perspective, which is my

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background. But really what I ended up seeing was this map of

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the global food system with millions of people

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around the world buying food from around the world, which then

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required a lot of shipping. And I just saw a map of

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like food flying all over the planet. And I thought, this is insane. There's got

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to be a better way to do this. And you dig in and as I

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said, the impact of that transport is horrific, but also

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the quality of the food at the end of that chain. If the food has

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been traveling for a number of weeks, then the nutrients are breaking down and the

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quality of food isn't so good at the end of it. So there are a

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bunch of problems there. And I started looking at it and thinking, okay, well,

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everyone's got to be eating locally grown seasonal food. And then It's like,

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well, okay, it's hard to change that

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mass consumer behavior. People want food from all over the

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world all year round. So is there a better way to do that?

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And instead of shipping food from one part of the world

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to the other, can you ship climate data from one part of the

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world to the other and basically recreate climates from all around the

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world, but do that local to the end consumer? And then you can

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grow food from all around the world, but now you're doing it in the same

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zip code as where they live, right? And now all of a sudden, you can

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take out the impact of transport, you can get food to the end consumer the

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same day of harvest rather than 2 or 3 weeks after it's harvested.

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So the quality of food is better. And that was kind of the aha moment

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for me. I had been working with a guy called Kimbal

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Musk on some technology projects up until that

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point in parallel. He had also gone very deep in the food world.

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And I picked up the phone to him and started talking about this idea.

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And he was like, well, okay, there's a missing element in what you're saying

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here, which is who's going to grow the food? Mm-hmm. They're like, food is—

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plants are not just widgets, right? They don't just grow on demand. You need a

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person in there willing these plants to come to life. And he was sort of

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explaining to me that it's the farmer that's at the center of the system that

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gives the love to the food that makes it taste so good.

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And you start thinking then about, okay, well, eventually with a

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company like Square Roots, we'll need millions of farmers. How do we hire those people?

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And then you find out they don't exist. The

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average age of a farmer in the US is 58. The average age of

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a farmer in countries like Japan is 68.

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You've got this demographic time bomb that is about to detonate on

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the food system, which is When these people retire,

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who the hell is going to grow all the food? We need to find

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pathways for young people to enter the

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agriculture industry. And that was what we decided to

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tackle first at Square Roots. How do we create a pathway,

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create a program that makes it really exciting and

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compelling for a young person to say, you know what, I'm actually going to grow

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up and be a farmer. This is going to be awesome. And, uh,

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that was, that was kind of the genesis of Square Roots.

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So as you started entering the space, you know, this is— we're talking now

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about 2016. What did— if you could paint a

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picture for folks, because I think people that are just getting into vertical farming, indoor

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agtech, you know, they see, they just see the, the, the money coming in,

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the investments, how the industry is growing. But can you

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wind the clock back a little bit and talk about what What was the landscape

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like in 2016 as you were getting off the ground? Yeah, that's

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a really good question, actually. So I remember putting the

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first pitch deck together and talking to an investor.

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And Square Roots, for those people who don't know, we have a modular

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architecture system. So we've got farms that are built inside refurbished

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shipping containers. People will be somewhat familiar with that model. But

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I remember saying to an investor, okay, we're going to take a young person with

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no experience of growing plants, and put them in a metal box right in

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the middle of Brooklyn, and they're going to grow the best food you've ever tasted.

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And people thought we were absolutely insane.

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Absolutely insane. And I probably talked

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to like 200 people to pull the seed round together.

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Wow. And we got it off the ground, right? And the first thing that we

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had to prove was that we can actually take a young person with no

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experience and get them up to speed very quickly to grow food.

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You know, we figured that out. Once we had done that, we sort of started

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investing in a bunch of, you know, technology,

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hardware, software, et cetera, to really sort of, you know, scale

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things up, commercialize it, figure out different business models.

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You know, how would we sell this food at, you know, the right price

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to what customer? That led us to do deals with companies like

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Gordon Foodservice, who are the 4th or 5th biggest food distributor

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in the country. We now sell to grocery retail stores like

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Whole Foods and in the Midwest, Spartan Nash and Meijer and Fresh Thyme, you know,

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big, big regional chains, you know, but sort of every

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step along the way, there's been a different, a different challenge, right? But

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to answer your question right at the beginning, the challenge

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was trying to convince people that we weren't crazy.

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And so as you start as the CEO, As you start

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to think about how— what's the right team that can

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move this vision forward? What's the right team? How fast do you scale?

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What experience, or how did your past experience that, you know, you've done some work

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in AI, you've worked at Adobe, you were CEO at Aviary—

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did some of those experiences in terms of how you build a team and how

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quickly you build a team color your thought process, you know, as you're starting to

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scale? Yeah, it's a good question, actually.

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So I think most of the stuff I did before Square Roots was software,

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where you can scale very quickly. There's

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incremental cost to scale. And that's the beauty of software

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from an investor perspective. And sort of dropping into the

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food world was to rewire my brain

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completely. In software, you can have an idea

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in the morning and it's in the market in the afternoon being used by millions

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of people. Yeah. In indoor farming, you can have an

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idea, what if I change the climate? What will happen? Well, sit around for

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6 weeks and you might find out. It's like a completely

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different timescale here. And

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then of course, just delivering a software

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service to a consumer is an entirely different

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universe with entirely different unit economics

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than getting a physical good from seed

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to shelf. Oh, and by the way, that's perishable. So if you don't look after

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it at every single step of the way, it's destroyed.

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Massively different. So I think there are certain things that I think have been

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an advantage, the Silicon Valley cliché of

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move fast and break things. And we have pushed and pushed

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and pushed at a hell of a pace at Square Roots, and I'm extremely

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proud of the way we've done that, got

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to a really good place in a very short period of time. But frankly, I

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think there were probably disadvantages in the way my brain was wired as a

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software guy, and I just didn't know what I should have known

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about food. So I probably had to get educated

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on the job, which might not have been ideal.

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Kimbal running a restaurant company,

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he knows, right? Unless there's a good GM, and a fantastic

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chef, you don't have a restaurant company, right? So we were

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able to make sure that we hired, you know, great operators and fantastic

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farmers on day one, right? There's the analogy. So, um, Yeah.

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You know, when I didn't know what I was doing,

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I have people around, you know, me who did,

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mercifully. Uh, yeah, I mean, it's been fun. It's easily been

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the most fun I've I've ever had. Easily the most fun

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product. You know, the other wonderful thing is when you're stressed in a software company,

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you stay stressed. When you're stressed in a farming company, you just go wander around

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the farm for half an hour and look at some flowers. You go pick the

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lettuce. Oh, it's so nice. Yeah. You can see

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the fruits, the literal fruits of your labor and the fruits. It's so—

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it's the fact that you can touch it is something probably different

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than to your point, speaking from software as well. Yeah, I think that's right. I

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think the other thing as well, you know, this is probably unique to our model.

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You know, we think about ourselves as growing food, but like growing people, right? Growing

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the next generation of leaders in the industry, you know, and you see,

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you know, a young person coming with no experience, you know,

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maybe in a, you know, not such a privileged background,

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you know, and they want to change the food system, right? They share

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that mission with you and they got that passion and they lean

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in and learn and they work hard. And then

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2, 3 years later, they're the farm manager at the

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new farm that you're opening on the other side of the country. That is

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amazing. I love seeing that. So yeah, I feel

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very, very fortunate to be in my current position for sure.

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How did it feel the moment you stepped into

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your first fully functional unit There's something

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where someone can paint a vision of this is what it's like, this is what

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we want it to be, this is the experience you want it to have, this

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is the look and feel. And that's different than when you're actually in one,

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you're seeing it functioning, you're seeing it producing a harvest.

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Well, and you're smelling. What is that like? And you're smelling. You walk

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into a beautifully farmed zone with, again, this farmer

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that's put all the love in it. Oh my God, it smells amazing.

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Yeah, no, I completely agree with you. Um, you know, on the—

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you know, we have a really, you know,

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fantastic, efficient sales and marketing

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team right now. And, um, you know, one of the things that I—

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you know, they're running rings around me now. In the early days when I was

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trying to bring them up to speed with this new thing, I was saying, listen,

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Square Roots is a business where you show, don't tell. Right.

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You can get on the phone and talk until the cows come home about what

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we're doing, right? But bring someone to the farm, have them look

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at what we're doing, have them talk to a farmer, have them

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feel that energy and that love and then taste that food and

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the sell is done. Yeah, it's a very

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tangible experience that we're producing here for sure.

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And then we play that further forward, right? Yeah. sort

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of more regular marketing events that we do is a

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very community-focused farm tour event, right, where we

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literally throw open the doors every 2 weeks. Yeah. This is

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pre-COVID. When we built the farms, we put floor-to-ceiling

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windows in them, right? So we kind of like, you know, open the door and

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then you can like look through the window and,

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um, you know, see, see what's going on,

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right? And, and I love doing those farm tours both in

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Brooklyn and in Grand Rapids where we've got another farm. And, you know, that

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minute where you kind of swing the doors open on the farm and people see

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the pink lights and the magic, and, you know, it's a, it's a really

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wonderful experience. That's a beautiful segue. Uh,

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when you talk about the, uh, the floor-to-ceiling windows, it's this idea of

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transparency, right? And one of the things that's touted on the site is the

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obviously high standards with everything you do and, you know, educating

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people that vertical farms, free of pesticides, free of GMOs, but

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also the important thing that's, and it's something that you make a point highlighting Is

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this idea of tracking the food from seed

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to store. And why is that important? Yeah. I

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mean, I think we're the only company out there that can offer

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every consumer on every single package a complete

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story of where that food has come from, from seed to shelf. Every

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step in the process, every farmer that touched it along the way,

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photos of what the food looked like when it was being harvested yesterday, even down

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to which of our battery-powered tricycles took this

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to the store that you're in right now. We've got the whole thing, and

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you were able to get that data thanks to the operating system

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that we built at Square Roots, the software system, the Square Roots Farmer Tool Belt.

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Yeah. Which is, you know, I guess you were talking earlier about where some of

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my software, you know, my background, how has that helped with Square Roots, right? I

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think we have got a world-class software team here, and that is

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incredible. Yeah, this idea, you nailed it, right? The whole idea was

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The consumer wants transparency in the food system. Where does my

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food come from? Who grew it? You know, what techniques are being used?

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And so, yeah, like the original idea was to have a completely

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see-through farm, right? So that anybody could, you know, anyone

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walking through the neighborhood could have that question answered for them, like

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immediately. And that also sort of influences where we put the

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farms as well, right? So we put the farms right in the middle of the

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city. It's not the cheapest rent. Yeah. But in

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New York, for example, again, pre-COVID, like 8 million people

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could just jump on the subway and come see the farm. The

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idea is to be completely transparent. And if you

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can't get to the farm, then at least at the retail shelf, you can scan

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the package with your mobile phone, and that pops

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open a mobile webpage with all of that information from seed to shelf.

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So it gives that retail consumer this connection with

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the people that were involved in growing that food and getting it to the store.

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One of the things that's apparent to me when I'm in a

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supermarket or when I'm in a grocery store is the amount of plastic

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that's used in the delivery of leafy greens, for

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example. And I'm wondering how you think about that. There's

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certain challenges of where the market is now, but are you

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forward-thinking in terms of how much you know, companies like Square

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Roots can actually help come up with a solution that could be

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better for the environment? Yeah, it is a great question. Right.

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So some days I come to work and I'm like, my, we've done so

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much in a short period of time. This is awesome. And then some days I

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come to work and think, oh, we've still got so much to do. And, you

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know, one of the things that will make me think like that is when I

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look at plastic packaging, right? It's like, come on. Yeah. Can we

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not solve this? But, you know, to your point, very, very, very

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difficult and expensive challenge.

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I'm pretty excited actually by some of the stuff I'm seeing in

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the paper industry, you know, where you're getting paper

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coated with, you know, sort of

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molecular level vegetable extract, right, which then

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turns that paper see-through, but it's also impermeable to oxygen. And there's

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like potential there to use that as packaging in a way that, you know, we'll

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make sure there's still a barrier so the food remains fresh,

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which again is important because, you know, if you solve

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plastic packaging by not using it, but massively increase food

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waste because you've got no way to, you know, keep that food fresh for a

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couple of weeks, you know, you're kind of robbing Peter to

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pay Paul there. That might be an English expression. I don't know what the American

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translation would be, but yeah. Okay. Yeah. We use that. We use that as well.

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Yeah. Yeah, it's a very, very

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difficult problem to solve. And then frankly, I

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think it gets solved with purchasing power.

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And so you look at a company, I'm very, very, very proud of everything that

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we're doing at Square Roots. And we're 60 people now up from 15,

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12 months ago. And this is great. We're tiny as far as the

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wider food system is concerned. And you had the experience

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of working at Walmart to have the

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Both sides of the spectrum in terms of what you can do at scale.

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Well, totally. And so that's kind of where I was going. I saw at

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scale when Walmart said, okay, we're going to get

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serious about sustainability. How can we do that at

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scale? And as an employee in the company,

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there are no trash bins in the offices. You take your trash home.

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That's the way that it gets recycled. When you print something

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out, on a piece of paper, it's always double-sided, you know, and these

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things might seem really small, right? But when you've got 2 million

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employees doing this stuff, like, it adds up, not to mention everyone on their

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supply chain. Yeah. Who's held to those same standards, right? So yeah, I've

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seen how you can impact, you know, positively impact things at

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huge scale. You know, I kind of won't reveal too much there, right?

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But that's one of the many advantages that I think

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we've got with this you know, very deep relationship with Gordon

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Foodservice, you know, is that they are a, you know,

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multi-billion-dollar food company. They're a big player

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and they can have different types of conversations than we can,

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right? Yeah. So yeah, you know, I feel like I'm answering this rather like

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a presidential candidate or a VP candidate by not

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really answering the question in a debate. But yeah, I mean, we've got to figure

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it out. It'll be an industry-wide thing. I'm seeing some really

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cool technology emerging. And, you know, have

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faith, I guess, right? Yeah, so that's interesting. You mentioned the industry

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on a whole. How have you seen

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all the players in the space? And you have folks that you would consider

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competitors or doing something similar to what Square Roots is doing.

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And then people focusing on lighting. And we had a couple of great

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conversations with David Farquhar of IGS in terms of all the different moving

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parts and what you're able to control within this environment.

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There's so many people doing so many interesting things. What have you seen

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from an ecosystem as all these players

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start to talk to each other? You know, I would imagine you run into each

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other at conferences when there were those as well. What's the

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relationship between, you know, these companies, and do you find that you

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look for opportunities to engage or partner or collaborate at

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some level? Yeah, mostly it's really good. And

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there are probably lots of parallels with the sort of green energy

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or alternative energy industry. We are all in it to

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solve a massive problem for the planet and for people. Everyone

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who's in it is kind of mission-driven to a certain extent.

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Values tend to be somewhat aligned and that really helps.

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I think everyone also recognizes we're in very early innings here, right?

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You know, I started my career in the mid-'90s building,

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you know, websites, internet stuff, you know, Internet 1.0.

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And, you know, I remember kind of the meetups that used to happen there. I

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was in London. You'd go to like the First Tuesday Club or whatever it was

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where, you know, all the internet entrepreneurs were there. Yeah. And,

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you know, everybody knew that this thing was

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inevitable, but no one could quite yet

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articulate what shape it would take. You know, Facebook was still 10 years

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away. Twitter was still 10 years away. You know, yeah. And as a consequence, everyone

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just wanted to make it work and bring it to as many people as possible,

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right? And there was lots of sharing of ideas and people offering to

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help each other out. It was really, really beautiful. I'll use that word. And, and

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I think indoor farming right now feels quite like that, actually.

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It feels like the mid-'90s internet, right? Again,

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it's, you know, it's inevitable, and COVID has probably accelerated

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that. Yeah. You know, what's the— you know, there are certain kind of

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formats emerging now, are kind of, you know, very scalable, capital-efficient models.

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modular approach. Obviously there's a lot of great work going on with the plant

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factory formats, Bowery and, you know, those guys.

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You know, frankly, some greenhouse growers are just like execution machines right

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now. Like, I'm watching Gotham Greens march across the country, like, hats off to those

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guys. Oh yeah. You know, but as an, as an example of that,

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you know, like Irvin at Bowery, you know, there's a guy I can pick up

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the phone to and we talk about what's going on, right? Uh, Viraj at Gotham

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Greens, was so helpful to

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us in the early days and so generous

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with his time. And, you know, I've always been very inspired

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by their story and their brand and, you know, the whole thing. And I think,

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you know, it's very illustrative of quite a

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collaborative environment. Of course, you know,

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there are a couple of players who, you know, protective of their IP or

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whatever and don't want to play nice, but In the main, yeah, it's a

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really— oh, nice is a word that I tend

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to steer away from, but I would say this is a really nice space

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to be in, actually. Collegial, maybe. Yeah, that's a much better

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word. Well, it's interesting, your background coming from software,

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because what's worked there is this idea of

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open source Linux, these projects where everyone— there's a

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collaborative effort for people getting together for the greater good. And

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you alluded to it a little bit, but I don't know if there's something like

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that that exists now within indoor agtech vertical farming, or if that's probably

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still a ways off, but I think there's some benefit from that sort

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of open source. Yeah, to my knowledge, I don't think it's

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as formalized as that. I

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think the kind of Open Ag thing at MIT,

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they were talking about that, right? It never happened. And then obviously

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that whole program was discredited anyway. Yeah, I mean, there's lots of

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collaboration. If I think about universities, right, which is, you

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know, sometimes where some of that effort springs from, you know,

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we talk, you know, as much with

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Cornell and sort of what's going on in Michigan as we do with

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Wageningen in Holland. So yeah,

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I mean, I would say there is a lot of informal

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sharing right now. Yeah, maybe, you know, maybe someone

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does need to kind of formalize you know, an

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open indoor ag initiative. I, I don't know.

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Being a child of the '80s myself, I'd be remiss if I didn't ask you

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what your first computer was. A

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ZX Spectrum 128K. I don't know

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if that was a US thing, uh,

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the inventor of that, Sir Clive Sinclair, very British guy.

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Okay. It was about kind of 8 inches wide, nice

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rubber keys. Yeah, I learned to program BASIC on that

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thing. Yep. I had a Texas Instruments

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with a cassette deck as the— Yeah, exactly.

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Yeah, that's, that's the only way you

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capture information. Yeah, and then when the cassette kind of warped, it wouldn't load the

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software properly. And, you know, on a hot day, you might, you might

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struggle to load whatever, you know, game you wanted to play or whatever.

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Yeah, those are the days. We've come a ways since then.

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But I think on our hardware team, the sort of brains

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of the farm, we actually call it the farm brain, sort of where everything plugs

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into. And I'm looking at that, it's like a supercomputer, right?

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Versus my little ZX Spectrum. It's remarkable.

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Well, to that point, one of the benefits of as you

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bring more of these online is the fact that they're all cloud connected. And I'm

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wondering what you're able to see and learn learn

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and improve on as a result of having this

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information in the cloud? You mentioned working with data scientists, and that becomes a

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very important job function when you need to crunch this much data.

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Yeah, completely. So again, at the software layer that we've built, the

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operating system for the company, the Square Roots Farmer Toolbelt, we call it,

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and there are kind of 3 elements to it, right? The first is instruction. So

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if you're a farmer, you might open the app,

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version of the farmer tool belt. And, you know, the app is going to be

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context aware, right? It's going to— okay, you're Farmer Harry, you're on farm number 3

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in Brooklyn, today is basil harvest day, here are the 10 things that you've got

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to do. And it will kind of guide you through that and then prompt

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you to capture data as you're going through that workflow, right? In

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parallel to that, data is being captured ambiently through that workflow and that

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process, right? Well, how long did that process take, right? What happened here?

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The second part of it then is, you know, is that

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sort of additional data capture. So,

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you know, ambiently, we're capturing climate data, you know, nutrient

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data, light, you know, spectrum intensity, you know, the

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million and one different sort of environmental things that are there.

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And then at the end of every harvest, the system is then able to say,

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okay, well, what happened in the climate? Mm-hmm. and

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what happened in terms of farmer workflow and how long did

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things change for this particular harvest and what happened in this harvest? Was the

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yield above what we thought or below what we thought or, you know, et

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cetera, et cetera? And so the system then is able to, you

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know, determine insights, which we're then able to push back out across

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the network so that everybody gets to benefit from it, right? And that

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might be, oh, it turns out If the temperature is

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0.001 degrees warmer than what you're doing,

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that actually helps. Or it could be, huh,

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Farmer Harry's actually developed a completely new way to

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get the basil off the rack. And here are the photos of Farmer Harry doing

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it. And oh my God, it used to take 20 minutes and now it takes

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18. And if everybody is following that instruction,

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boom, that adds up, right? So the whole system is kind of learning very, very

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rapidly. Interesting. Whether it's workflow, or

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environment, climate. So yeah, there's

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lots of rapid learning cycles going on, actually.

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Yeah, as the AI guy, I get super geeked out about that for sure.

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And is there a community that you've built in, not necessarily Facebook, maybe

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like a farm book? Is there something where everyone's sort of

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sharing best secrets with clients?

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Yeah, I mean, not outside of our company, right? So the way

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our company works, we own and

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So we build them, then we have a farm team and they farm, and then

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we pack and distribute and we kind of go seed to shell. So

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we've probably got 30

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farmers, I would say, right now, and maybe sort of

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10 folks in engineering and continuous improvement,

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software, hardware. And so that as a community—

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Yeah. Is extremely active. either

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asynchronously on Slack throughout the day

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or in regular kind of

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cross-farm sort of collaborations. And the continuous

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improvement team works across all of those functions, right? Hardware, software,

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farming, kind of stitches it all together and is constantly looking for the

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next improvement. So yeah, that's a pretty high-powered

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setup, actually. That's fun, right? When you watch that team in

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full flow and the insights that they're coming up with. And then like how quickly

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they're implementing them and rolling that out, that is,

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yeah, that's something to really behold actually. And one of the things you

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highlight, that's highlighted on the website is the farmer training. And given what you

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just said, like how does that continue to evolve? Because I imagine,

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you know, a couple years ago you would do some of the farmer training, probably

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looks a little different now than it did back then. Yeah, it kind of

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changed in March. Yeah, I mean, you know, we did, we used to sort

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of bring in what we would call cohorts of farmers.

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several people would go in a class together, right? And, you know,

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on day 1, they're in the farm sort of learning how to do it hands-on,

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but there was a lot of kind of classroom time,

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you know, and that stuff is obviously

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difficult today, right? And so we've done a lot of

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work very, very quickly this summer to get

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a lot of the training content to be able to be delivered

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digitally through a learning management system. Yeah.

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The software team, you know,

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thought very rapidly in April

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about how do we give our farmers more eyes in the farm.

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It's sort of, you know, I'm saying that quote unquote, right? How do we give

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a person more eyes in the farm, even if they can't

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physically be there with another person all the time, right? So what extra

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sensors, what extra data, how do we present that

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in kind of actionable ways that would allow a farm manager

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to, you know, manage farmers across a, you know, a

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system without, or in a way that they're able to respect

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social distancing and not get too close. So yeah, I mean,

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you know, as I'm hearing myself explaining that, it doesn't sound particularly

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coherent. And some days I do have to kind

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of stop myself because we are running at 150 miles an

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hour, like figuring all this stuff out right now. Yeah. But I think that's the

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whole point of it because a lot of this has caused

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CEOs and leaders to really rethink

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the way, what you call business as usual.

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Yeah. And the folks, we've seen a lot of restaurants are

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closing left and right and

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people's access to food is as bad as it was before. It's almost

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even worse now in the interim. So people have to Rapidly iterate. And

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I think, you know, to your point, seeing what you thought was

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needed to meet the needs pre-COVID has changed now.

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And I think all these things that you're doing that you've put into place where

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you've had to adjust, given more eyes into what's happening,

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I would imagine now are actually going to play out in the long term

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being even more beneficial because they forced you to think about

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things that maybe hadn't even been on your roadmap. No doubt. Yeah, no,

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I think that's right. And there's another angle to this as well,

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frankly, which is we're in

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and will be for a while a horrific recession

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with millions of people unemployed. And that

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is going to change what consumers want to

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buy. And so we've had to adapt to that very rapidly as

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well. Bigger pack sizes, kind of more sort of

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broader appeal, products. We've

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done a fantastic job there. It's also going to impact how investors think

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about what companies to back in the future. Maybe

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2 years ago, we could stand in front of the pink lights and wave our

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hands around and tell people how awesome it was going to be.

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Today, people want to look at the ROI. Yeah.

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And so our

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team has put a incredible focus

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on bringing to life all the ideas and

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concepts that we had around driving efficiency that, you know, like,

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yeah, we'll get to that, we'll get to that, right? There's still a lot more

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cool stuff that we want to do. All of a sudden, those ideas

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became the priority. And we've

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become this like super well-functioning

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machine. And so yeah, I think you're right.

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Would I have chosen to go through a

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global pandemic to get the company to be

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this super efficient? Probably not.

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But does it set us up to be much

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more resilient and a

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much stronger operation? Frankly,

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stronger investment opportunity for the future, like 1

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million percent. 1 million percent.

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Naturally, every company that you've run

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has had its separate challenges given the industry that you were in.

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In the years that you've been CEO of Square Roots, how have you

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grown as a leader? Yeah, I mean, I'm probably the

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wrong person to ask, I guess.

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I guess the question is, what's the personal journey been like for you?

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Yeah. I mean, for me, it's certainly very humbling.

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That is for sure. I think for me,

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having been CEO 3 times previous

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to Square Roots, I'd like to

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think I've probably just— I'm continuing on the pathway

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where things I have done previously

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that coworkers have said, this is good, please do more

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of that. I've tried to do more of that. And things I've done previously where

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people said, that sucks and you make life miserable when you do that, I've tried

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to do less of that, right? So I guess that would be the way that

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I would try and answer that question, I think.

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I mean, listen, one thing that I will say is, you know, that the sort

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of team, the executive team that we've got here running the company,

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when COVID hit, I tend to be quite, you know, like a sort of

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body language manager. Like I get a lot of cues just by,

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you know, observing people and seeing the vibe. and, you know, kind of almost that

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sixth sense of what's going on. And, you know, over 20

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years of running companies, you sort of hone those skills and like that

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suddenly went. Yeah. Right. I'm now talking to everybody through a

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Zoom call. And so, you know, there are certain things

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that, you know, I started to have to do. Okay, how do you kind of

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replicate the, or sort of, you know,

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kind of provide a facsimile for, you know, the chat over coffee,

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you know, the random bump into you in the corridor.

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Exactly. Come walk with me down the hallway. Yeah, how do you

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do that in this world? So yeah, it's been really interesting actually, sort of

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figuring out just new techniques to try and, you know, catch the

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vibe. And, and it's important, right, because the,

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the folks that you're working with, you know, they're busting their ass as well, and

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they're also under extreme pressure from the

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anxiety that this whole situation has put on them, right? Oh yeah. So

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you, of course, like, you want everyone to develop in terms

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of career and learn skills and all this, but like you love them as humans

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and you just have to like look after each other. And

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so maybe through all of this, I've become a more empathetic leader. I

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don't know. I guess that would be a nice upside. Yeah. Is there anyone that

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comes to mind that was helpful for you as you

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were, you know, learning the ropes as a CEO, a mentor come to mind?

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Yeah, I think there've been a number of people actually. I mean, I'll say

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my mom first of all, right? She, you know, was a sort of small

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business entrepreneur when I was growing up in England. She ran a chain of retail

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optical shops and— Okay. You know, I used to go work there during the school

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holidays and learned a lot about, you know,

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operations and teamwork and, you know,

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culture building and sort of got the bug there, I think. You know, I

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remember the first technology company that I worked for in London, in England,

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I was, you know, project manager building websites and the guy that founded the company

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tapped me on the shoulder one day and said, hey, we want you to move

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to India. In 2 weeks from now. Wow. And set up

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a software development center and go hire 500 people and like figure it out.

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And I was like, what? Wow. And he was like, listen, we believe you can

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do it. You will fall on your face and make big mistakes,

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but, you know, pick up the phone and we'll support you through it.

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Right. And that sort of confidence, right, that someone has

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in you makes you feel 100 foot tall. And, you know, by the

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way, makes you the most loyal person ever. Right. Because you do not want to

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let that person down. So, you know, that was interesting. And then moving to the

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States, obviously being around Kimbal Musk is phenomenal.

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Yeah. You've got a guy there who is amazingly successful in

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his own right, has done that by putting

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values and impact alongside

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scale at the center of every single business he's been involved

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with. He has got the ability to

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operate at 30,000 feet where we're talking about what the company's going to look like

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in 2030, And then at the next minute, boom, we're

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talking about how to increase the yield by 3 panes in farm number

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4 in Brooklyn. Wow. Sometimes your job is just trying to keep up

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with him as he's oscillating through these levels. And you can't

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help but be informed and sort of

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frankly want to push yourself to be better when you're in that environment. So

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yeah, I feel very, very, very fortunate with the

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people that I work with. For sure. I've certainly worked for a couple of,

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you know, people that weren't as good as that and lasted about 4

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months and then left. Yeah, you learn from those

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folks as well. Yeah. It reminds me of the Jim Rohn quote, you are

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the average of the 5 people you spend the most time with. Right. And

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I imagine what's the short version of

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the story when you and Kimbal met for the first time?

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Uh, how did that happen? Actually, you

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know what, it's funny. So I was, uh, in the US selling,

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um, speech recognition software by a British company,

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and this would have been 12, 13 years ago or something, right? So I mean,

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everyone knows how terrible Siri is today. You can't— she doesn't understand anything.

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Yeah, well, imagine how bad that technology was 12 years ago,

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and then imagine how difficult it was trying to sell that with an

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English accent talking to this, you know, American system.

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Forget it. And then someone introduced me to Kimbal and I was like, okay,

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he's done some really cool stuff. The company he was setting up was in Boulder,

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Colorado. I'm a big snowboarder. I was like, well, that sounds good. Very

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compelling guy. And the week later, I moved out of New York and I was

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living in Colorado. There wasn't too much thinking about it.

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Where's home for you now? New York City is

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home. I find myself temporarily right now in

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Florida. Okay. You know, one of the million pandemic

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stories. Yeah. You know, different family things and people get displaced.

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And my wife and I are here in Florida for a couple of months looking

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after her parents. For the benefit of the listener, we're on camera and I

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can see a reflection of a palm tree. And I said, well, I thought he

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was in New York. And I'm like thinking, where in New York is that palm

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tree? Not too many palm trees in Brooklyn, that is for sure. Oh, actually the

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botanical garden, That's true, yeah. Yeah.

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And I grew up in Yonkers, New York, just outside. Ah, okay, great. Yeah. So

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I've— I've cycled up there many times. Yeah. So growing up in

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London and then living in, in the States, is there anything that

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you can think of in terms of the relationships that people have

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to like their food, having it available local,

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you know, access to farmers? Did that change or just were you going just from

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city to city, you know, London to New York, so there wasn't much of a

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No, I mean, it's quite remarkable actually, right?

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So when I left the UK 20 years ago, a lot of the

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food that we ate was local, right? And just the geography of the country,

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it takes you 6 hours to drive from one end of the country to the

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other, right? So everything you eat, broadly speaking, is local.

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Yeah. And then when I came to the US, I remember this very clearly, went

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into a supermarket, I saw this row of

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watermelons all the way down the supermarket. It felt like it was like 10

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miles long. And all these watermelons were huge, these

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massive bowling balls that were perfectly round and shiny. I was

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like, wow, America is amazing. And then I took

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one home and it didn't taste of anything. And then I was like, hold on,

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what season is this? Like, where the hell have these things come from? You know,

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and then you eat strawberries that are ginormous but just taste like

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water. Yeah. And then, you know, oh my God, you know, and you kind of

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dig in and look at the industrial food system that we've got and it is

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horrific. Yeah. So yeah, lots of differences actually.

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That being said, and I think it's what the consistent thread as I've had

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conversations with folks on the podcast is what people don't

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understand, consumers don't understand how fresh or what a

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strawberry is supposed to taste like, or to your point, or what really fresh greens

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that were just picked the day before. And then even varieties

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and all the different varieties of basil, for example. I think I'm wondering if you

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saw that as well, just the education Of, or sort

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of re-energizing or re-educating your palate. Yeah, it's

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hard. Or retraining your palate. I'm not going to name the

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person or the retailer, but I was in conversations with a

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big retailer, big grocery retailer about Square Roots

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produce. And he was like, hey, Tobias, all you indoor farmer guys, you all talk

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about taste and develop taste, but my customers don't care about

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taste because you know, they just douse their

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salad in salad dressing anyway, which again, by the way,

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I'd never even seen salad dressing until I moved to the US.

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And he was like, you know, my customers equate

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freshness with like crunch. You know, I don't care about

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taste, I care about texture, right? Give me something crunchy because

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that's what my customer thinks is fresh food.

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Very Very interesting, right? And then again, then it illustrates, well, okay,

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well, hang on. Taste equates to

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nutrient value, right? Broadly speaking, right? The tastier it is,

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the better. It's like, how, how have we moved so far away

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from that that people aren't actively seeking the

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tasty food? Because that is the quickest way to eat

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healthy food. You don't have to be a bloody nutritionist to figure this

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shit out, right? If it smells great and it tastes great and it looks great,

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it's It's going to be good for you. It's not a

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huge amount of education that we need to sort of get that message out,

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but apparently it is, right? Yeah, it still kind of blows my

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mind a little bit, right? But again, that just brings you back to, okay,

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well, what we're doing is kind of important. And more to the point,

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it's not just going to be Square Roots that sort of fixes this, quote unquote,

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right? It is going to take thousands of companies like Square Roots

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and That's back to the collaboration then, right? I think that the

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sort of problem here is ginormous. You can translate that to the market

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opportunity here is ginormous. There will be way more than one

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winner. And we can all kind of afford to help each other out a

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little bit. Couple questions as we wrap up. What's something you've

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changed your mind about recently? That's a really good question.

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I mean, listen, I'm going to change my mind on stuff every

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single day, right? What I can't What's the line? Like,

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have strong convictions, but hold them loosely, right?

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Yes. If you have an idea, make sure you're running at it 100 miles an

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hour, but always be prepared to switch tack, right?

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And one of the sort of lines some of my

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coworkers will get sick of me saying is, I don't care about what

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I care about. I care about the data.

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Meaning, our opinions and, you know, the sort of positions that we

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hold, like, they have to be loose. Like, if the data is telling us to

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do something, do it. Yeah. So yeah, I'll probably change my mind 5

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times a day. No, actually 6.

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What's, um, what's a tough question you've had to ask recently?

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A tough question I've had to ask? Yeah. On a personal

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level, how are you doing today? We had, unfortunately,

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You know, in our immediate family, we've had a death, which is

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the first time I've been through that. And that, you know, seeing people that you

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love around you just broken is tough

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and you have to show up every day and ask that question, you know, and

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then translating that back to the, you know, the company, right? As I was

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saying, people, you know, the environment we're in is fucking nuts.

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Yeah. And, you know, if I'm having a one-on-one with

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people, you know, I might go in thinking, okay, we're gonna talk about KPIs or

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this week's sales target. or whatever, but I will frequently look

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at the person and go, hey buddy, are you okay? Like, yeah, do we, do

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we just need to talk? Really important. Really

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important. Yeah, I, I think so. And I, I don't know

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what the long-term impact here is. Nobody does. All right,

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we can all kind of deal with it in the moment, and you know, we're

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probably all running on adrenaline and trying to hold it together now, but you

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know, there is going to be a big emotional crash at some point in the

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future, and, uh, Yeah,

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it's almost like adrenal fatigue is how I've, you know, made the

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analogy. Cabin fever and just stressed. I lost a

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best friend from high school to COVID. He's my age. Oh, I'm so sorry.

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We had drifted apart, but to have someone that's your age,

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you know, go through that and you think he's gonna pull, pull out of it,

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that's when it hits home. And then it's that times, you know, here in the

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States, it's not just the 210 10,000 deaths,

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apparently someone did an analysis and every death impacts like 7

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lives. So now we're talking like 1.5 million people

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affected mentally by what's happening. Yeah. And I think people are not

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understanding, to your point, asking that question, because at the end of the day,

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we're all human beings trying to get through the day.

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And you can't see some of that now since we're all remote now. And

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before you'd be able to pick up on body language or or something like that.

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So now you have to actually work harder as a leader to make sure that

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the team is mentally holding it together as

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well. Yeah, completely agree. So as we wrap

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up, Tobias, what has you excited about the

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industry and what are you looking forward to?

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So I think pre-COVID, everyone in the industry knew,

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right? We all had the sort of similar thought that we've gotta have this distributed,

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resilient food system where we're bringing local food to people and technology can enable that.

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cost-effectively year-round. Hundreds of people

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probably understood that narrative. And then COVID happened

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and all of a sudden millions of people understand that narrative,

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right? There is a desperate need

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to figure out a more resilient food system where people are

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eating healthier food and doing that all year round. And indoor

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farming can be a big part of that solution, right? So

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I've always been excited by what we're trying to do. I think I'm even more

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excited now, right? It's kind of a horrible way to have that

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kind of accelerated. Yeah. But this is what we're living through, right?

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And there's not just a sort of opportunity,

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that sounds a bit crass, right? I feel like there's an obligation and a

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responsibility here to give it 110%

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every single day and make this happen. Yeah. Let's do something good for

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the world. Well, yeah, that's

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one of the best ways I can think of to wrap up this conversation, to

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end on a high note, to demonstrate and

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have people believe what we can collectively do,

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humanity, to kind of lift ourselves up. Rising tide lifts all boats and all.

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And I think what you're doing at Square Roots and what the team is doing

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is doing your part and leading the way and showing

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that there is an alternative future for us.

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And I think it's important, like, the more stories we have

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that are feel-good stories, to be quite honest, and we need more of those,

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I think, in this day and age. So, I just want to congratulate you on

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the success of the company so far. And I see, from

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where we're standing, we see a lot of good things happening, just the industry as

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a whole. Thank you. And the energy and the enthusiasm.

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behind what you're doing is obvious in the industry as well. So I want to

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applaud you on that and thank you for all the work you've done so far.

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Thank you very much. And thanks for what you're doing, providing a platform where, you

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know, more of us can tell this story. It's really fantastic what you're doing. Thank

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you. And so is there any initiatives coming up or best place for folks

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to learn more about Square Roots? Yeah, we're super

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active on social media, especially Instagram and Twitter. You can find us

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@squarerootsgrow. We got new farms opening in New York

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and in Michigan and a couple of others that I probably can't talk about

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right now. Okay. We are hiring farmers right now. Okay. And

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all of that information will be on those social channels at Square

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Roots Grow. Okay. And we'll make sure we have all those links, uh, in the

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show notes as well. So thanks again, Tobias. I really appreciate your time and telling—

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you're sharing your story as well. Thank you. Thank you so much for listening.

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To read the full show notes for this episode, which include a summary, timestamps, and

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any links mentioned in this episode, Please visit

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verticalfarmingpodcast.com. There you'll find the information

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from this episode and any past episodes. Special thanks to this

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week's sponsor, Ceres Greenhouse Solutions. Ceres is

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combining smart greenhouse design with customized climate control technology

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to build sustainable grow environments for year-round production. Be sure to

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visit ceresgreenhousesolutions.com, and Ceres is

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spelled C-E-R-E-S

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greenhousesolutions.com, to get started on your greenhouse

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goals. And if you're enjoying this podcast, please leave us a rating and a review

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at ratethispodcast.com/vfp.

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We'll be sure to read those out on future episodes. Until we meet again next

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week, here's to your health. Thanks for

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listening. To read the full show notes for this episode, which includes

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any links mentioned in the episode, as well as a full show transcription,

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visit verticalfarmingpodcast.com. There,

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you can sign up for our email list to be notified when new episodes are

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published.

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