Episode Summary
Join Harry Duran, host of Vertical Farming Podcast, as he welcomes to the show Eric Levesque. Eric is the co-founder and VP of Business Development and Sales at Cultivatd, an organization that works with a wide range of industry-proven technology partners to provide the best fit for a project’s needs. Cultivatd also offers farming guidance, design consulting, and lending and leasing services to its clients. In this episode, Harry and Eric talk about how the pandemic has impacted our food supply chains and the desperate need for our society to solve these issues. They discuss Eric’s time at ZipGrow, the need for indoor and outdoor Ag to coexist and what the future holds for Cultivatd and the AgTech industry.
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2025 Precision Ag Report by iGrowNews
2025 Precision Ag Report by iGrowNews
$680 million poured into precision ag last year.
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Speaker:igrownews.com/precision. If you are starting a
Speaker:vertical farm and don't know where to begin or which technology would suit your needs,
Speaker:then reach out to the experts at Cultivated. As indoor farm brokers, they
Speaker:help connect you to the right technology and ensure your project is successful.
Speaker:Best of all, their service is free because they work on behalf of their
Speaker:partners. Visit cultivated.com to learn more. And
Speaker:that's spelled C-U-L-T-I-V-A-T-D.com,
Speaker:or click the link in the show notes. It's strange, it always kind of came
Speaker:natural to me. It's really like my favorite thing. I think I just like connecting
Speaker:and making new relationships and bonding with people. And so there's something to
Speaker:it that there's a really personal aspect. Obviously with this, there's a
Speaker:bonus of you're selling something that's actually helping to heal the world, and so
Speaker:that obviously helps a lot.
Speaker:Welcome to the Vertical Farming Podcast, weekly conversations with
Speaker:fascinating CEOs, founders, and agtech visionaries.
Speaker:Join us every week as we dive deep into the world of vertical
Speaker:farming with your host, Harry Duran.
Speaker:Vertical Farming Podcast, Season 3. Welcome back. If this is your first time
Speaker:listening, welcome new listeners. This is the show where we interview
Speaker:fascinating CEOs and founders of the leading vertical farming companies from around the world.
Speaker:I'm your host, Harry Duran. In case you missed last week's episode, we had a
Speaker:great conversation with Nicholas Tyner, CEO of Moleaar. And
Speaker:for those that are new to the term, we got to learn all about nanobubbles.
Speaker:So make sure you check out that episode. This week, I speak with Eric Levesque,
Speaker:co-founder of Cultivated. It's an organization that works with a wide range of
Speaker:industry-proven technology partners to provide the best fit for a project's needs.
Speaker:You might recognize the name from the beginning of the podcast episode, as
Speaker:Cultivated is actually a sponsor for this season. They provide
Speaker:farming guidance, design consulting, and lending and leasing services to their clients.
Speaker:And in this episode, Eric and I talk about how the pandemic has impacted our
Speaker:food supply chains and the desperate need for our society to solve these issues.
Speaker:We talk about Eric's time at ZipGrow and the need for indoor and outdoor ag
Speaker:to coexist, and what the future holds for Cultivated and
Speaker:agtech in general. This episode is also brought to you by the Vertical Farming Weekly
Speaker:Newsletter. Each week, our team member Daniel Dre scours the ends of the earth to
Speaker:bring you some of the latest and greatest news in the world of vertical farming.
Speaker:Sign up today at verticalfarmingweekly.com. Don't forget, if you
Speaker:enjoyed this episode or past episodes, I'd love it if you leave a rating and
Speaker:a review at ratethispodcast.com/vfp.
Speaker:I'd love to read yours out next. Okay, let's get into this conversation with Eric.
Speaker:So Eric Levesque, co-founder and VP of Business Development and
Speaker:Sales at Cultivated. Thank you for joining me on the Vertical Farming Podcast.
Speaker:Thanks for having me. So where's home for you as of this recording?
Speaker:We are in Ottawa, or near Ottawa, sorry, Ontario,
Speaker:Canada. And did you grow up there? Yeah, I am
Speaker:born and raised. We're actually in a small city called Cornwall, about 50,000 people.
Speaker:I left a little bit for school, but pretty much been here my whole life.
Speaker:What's your fondest memory of growing up in Cornwall? Probably
Speaker:sports. Played a lot of sports, varsity sports around here, so that
Speaker:would have to be it. And, um, are you still a sports
Speaker:fan? Yeah, huge sports fan. Absolutely. So
Speaker:as of this recording, we're in February 2021. How has
Speaker:life changed for you and how have you adjusted since, you know, we're coming
Speaker:almost on a year since COVID hit? Yeah, it's been kind of a
Speaker:wild ride. We actually just left our second lockdown
Speaker:on the 18th. We went into lockdown, I believe, on
Speaker:December 23rd or 24th for the second time.
Speaker:They just lifted us back to orange Whatever that means. I think
Speaker:it's just small public gatherings, about 25% capacity for restaurants and
Speaker:such. But yeah, it's been trying. It's been a little taxing,
Speaker:I guess, but I consider myself lucky in terms of, you know, this
Speaker:whole pandemic. What was the impact to
Speaker:the business when COVID hit? So when COVID
Speaker:hit is about the time we started. Yeah. So there was a lot of
Speaker:working from home, but it kind of gave us the opportunity to really
Speaker:see that the demand in food supply and food chains really needed some
Speaker:work. I think it kind of opened a lot of people's eyes. And so, because
Speaker:of that, I think, I don't wanna call it a silver lining, that seems a
Speaker:little too much, but it has been good for the industry as a whole.
Speaker:I think the consistent thread in the communications I've had since then
Speaker:were about the awareness that it brought to
Speaker:our food supply and people's proximity to food
Speaker:And I think it was top of mind for obviously everyone in this industry,
Speaker:but I think because of the impacts to the supply chains and
Speaker:people not having access to fresh food, it's been more
Speaker:noticeable since COVID And I'm wondering if there's anyone that you've
Speaker:been speaking with or people who are in your close circle that have noticed
Speaker:that the topic of indoor farming, controlled environment
Speaker:agriculture is more top of mind lately. Yeah, we've seen a
Speaker:lot more inquiries. I think this industry is still relatively new, right?
Speaker:So there's been a lot of interest, and even though we've just scratched the surface,
Speaker:the industry has been growing really rapidly. But I think this has kind of
Speaker:put a lean on that in terms of people are really realizing now
Speaker:there is an issue and the world has to trend in this direction.
Speaker:Obviously, the lack of arable land and water is, is an
Speaker:issue, but something like this pandemic obviously sheds light
Speaker:on what the world needs in terms of fresh supply of food, obviously.
Speaker:When for you was this something that became an interest? Was
Speaker:it something that you knew just going into college it's something you would study, or
Speaker:is it something that over time, because of what you were getting exposed to, that
Speaker:you were becoming more aware of this? So, I actually was
Speaker:not aware, if I'm being honest. I kind of just bumped into this. My
Speaker:partner and co-founder of Cultivated, Eric Bergeron, actually introduced me to the
Speaker:system a few years ago, the ZipRow system, which is just another vertical farming
Speaker:system, and he had become the Canadian redistributor for
Speaker:Bright Agrotech, which was founded by Nate Storey. I'm sure you've touched on that in
Speaker:some previous episodes. And so when I went to see the system, he
Speaker:was kind of explaining it to me. I didn't really understand the gist of it
Speaker:until I saw it in real time, and I fell in love right away. I
Speaker:just saw it and I was like, wow, I can't believe that this even
Speaker:exists. The world is going to need this. And I literally told him, I'll be
Speaker:here tomorrow morning, 9 AM. And that's how we started. What were you working on
Speaker:at the time? I was kind of bouncing from sales jobs, doing
Speaker:startup consultancies kind of stuff. And so, I was
Speaker:basically available to start and he was looking for someone to head the sales department
Speaker:for the company. And obviously, if you know the history of Bright
Speaker:Agrotech, they had a really good base of customers and of knowledge that
Speaker:they had put out there. So, we had quite the runway
Speaker:to start ZipGrow in Canada, obviously. How did you two meet?
Speaker:We actually met playing soccer. We played soccer together for a dozen years or so.
Speaker:And so, yeah, we just kind of touched on it. He actually purchased a freight
Speaker:farm, the first freight farm in Canada. That's how he began his whole venture into
Speaker:this and then designed his own container company, which then evolved into
Speaker:wanting the project to be a bit less niche. And so he partnered with
Speaker:Bright Agrotech to launch ZipGrow in Canada. And then that's when I came on board.
Speaker:Since you had been friends for that long, was he ever talking about it and
Speaker:you were just, you know, maybe while you were playing or something, then keep
Speaker:Yeah, when he launched his Freight Farm,
Speaker:I actually ended up buying some produce from him, some kale and some basil in
Speaker:his first harvest, just to kind of support him. I don't think I was even
Speaker:aware that kale was a thing back then, but I guess I didn't really
Speaker:realize the impact of what he was doing. I hadn't dug into it more than
Speaker:that. I thought it was cool at the time, but I was doing a different
Speaker:venture at that time, so we didn't really get into it, but that's how it
Speaker:happened. And then talk a little bit about your time
Speaker:at ZipGrow. You were there almost 3 years and working in
Speaker:business development. And you were introduced to ZipGrow
Speaker:through your partner as well? Yeah, correct. So he basically had
Speaker:founded that company. He had another partner that was an investor. They were basically running
Speaker:it alone, but they had just, just started. This was about the exact time that
Speaker:Bright Agrotech got bought out by Plenty. So they gave the rights to the
Speaker:entire Bright Agrotech system to ZipGrow Canada, and ZipGrow basically took over what
Speaker:Bright Agrotech was under a different name. And so I came on
Speaker:board to head up the sales. They hadn't really done any sales as of yet.
Speaker:But obviously the marketing and everything from Bright Agrotech carried over, and so we had
Speaker:quite the launch pad, like I was saying. So everything went really
Speaker:smoothly there. When I came on board, sales started coming through right away. We had
Speaker:a list of clients that was really long, and they were— they knew what they
Speaker:were getting into to begin with, so the education process was
Speaker:not so large. So the sales started coming in really quickly, and the company grew.
Speaker:We grew like crazy for the first, uh, like you said, I was there for
Speaker:about 2 and a half years. I think we got from 2 employees to
Speaker:nearly 30 in that time. So yeah. Did you come
Speaker:from a sales background? Yeah, I've done sales previously, and
Speaker:so that's kind of what I wanted to focus on. They didn't have anybody with
Speaker:a sales-type background, I guess, so that's what interested me the most. And
Speaker:so there was a learning curve for me, obviously, but once I got the hang
Speaker:of it, we really hit the ground running. I recently had a conversation with
Speaker:Allison Kawa from Artemis, and one of the things she talked about was, um,
Speaker:rushing a little bit too much into bringing a sales team on board because
Speaker:in the beginning that was not her skill set. But I think one of the
Speaker:things you learn as an entrepreneur, the tough thing to learn sometimes is you actually
Speaker:have to learn how to do all the things yourself first before
Speaker:you could figure out whether it makes sense to hand off something like that. And
Speaker:so it's something that I've been thinking of as an entrepreneur as well, like
Speaker:learning like the basics of selling. And unless you've been
Speaker:trained on it, or had experience with it. I think most entrepreneurs
Speaker:are really uncomfortable when it comes to selling, so that's why I was asking, you
Speaker:know, how long you'd been doing it as well. Yeah, that's actually— it's
Speaker:strange, it always kind of came natural to me. It's really like my favorite thing.
Speaker:I think I just like connecting and making new relationships and bonding with people. And
Speaker:so there's something to it that there's a really personal aspect.
Speaker:Obviously with this, there's a bonus of you're selling something that's actually helping to
Speaker:heal the world, and so That obviously helps a lot.
Speaker:But yeah, I was always pretty good at it. I was fortunate, the opportunity
Speaker:when it came, obviously everything just went so well. And the staff that we
Speaker:hired to help grow Zipgrow was out of this world. Everyone was such a team
Speaker:player and it was a really good atmosphere. So I think that obviously
Speaker:translated into the success that we had. Do you remember the first thing you ever
Speaker:sold? Yeah, the first thing that I did sell was about a month and a
Speaker:half in, and it was a complete farm package that we had just basically
Speaker:redesigned from Brad AgriTek, and it went to Kansas, I
Speaker:believe. Was this something that you were doing since you were a child?
Speaker:Did you have a lemonade stand growing up? No, no, I
Speaker:definitely did not. Yeah, I didn't envision myself landing here,
Speaker:but as soon as we started, I knew right away this was for me and
Speaker:that I would be in business for the rest of my life, definitely.
Speaker:What was different about working at ZipGrow than any of the previous
Speaker:engagements you had? Because it feels like you had more of a vested interest in
Speaker:the success of ZipGrow. Yeah, I think I just saw
Speaker:a future for myself there. Obviously, when I came on, I was kind of on
Speaker:the ground floor. So my ideas were valued in a way that I felt like
Speaker:they maybe hadn't been in previous positions. You know, my opinion was
Speaker:taken seriously. And I obviously, I think that's what
Speaker:basically everyone aspires to have in a workplace. So it really was
Speaker:nice to be able to contribute something and then to see the
Speaker:efforts when you're starting in a tiny company like this and then
Speaker:growing it to the scale that we did in such a short period of time.
Speaker:It's a really amazing feeling to see that the effort that you contribute every day
Speaker:is leading to something really tangible that you can, that you can see. And
Speaker:had you had prior experience in working for like a bigger company, like a
Speaker:corporation with like hundreds or thousands of employees? I had,
Speaker:but I, I always thought I, I would be able to climb the ladder
Speaker:and succeed a little bit more than I had been given the opportunity to. And
Speaker:it seemed like some of these companies, because I hadn't gotten in on the ground
Speaker:floor, it was harder to get the opportunity to show that you were capable
Speaker:of being in the upper echelon, so to say. And then so with this one,
Speaker:the way it worked out, I was able to climb the ranks and kind of
Speaker:stay at the top. And so it really made
Speaker:me want to stick around and made me want to give it my all. I've
Speaker:heard from people that have had experience in corporate, and I was in corporate almost
Speaker:20 years as well, so I can definitely relate, that once you're in the startup
Speaker:environment, there's no looking back. There's no way you can go
Speaker:to like the regiment of having like the meetings and the bosses and the different
Speaker:levels of management because it feels like it, and you can Tell me if this
Speaker:is true, but at Zipgrow, it feels like every day is a new challenge and
Speaker:a new experience. Yeah, that's absolutely what I loved about it. So every
Speaker:single day, especially in the beginning, it just seems like there's 300 new problems to
Speaker:solve. And so you never have the same, the same day
Speaker:twice. And every little win is just so
Speaker:monumental at that stage. Just, you know, closing a tiny sale
Speaker:or just bringing the right person on board, or every day there's just tiny
Speaker:little challenges, but solving those problems keeps your day so entertaining,
Speaker:and the days just fly by because every day is something brand new.
Speaker:And you were learning the industry at the same time. So talk a little bit
Speaker:about, you know, how that was, because not only do you need to execute on
Speaker:your day-to-day responsibilities but also learn about the industry
Speaker:you're in as well. Yeah, so I was a little possessed, I
Speaker:guess you could say, when I came into it. I love to learn
Speaker:and I love to read, and so I just found every article I could about
Speaker:every single company, and I just dug in And then my
Speaker:co-founder is also, he's been in the industry a lot longer than I have. And
Speaker:so I just picked his brain day in and day out. I think I was
Speaker:driving him a bit crazy in the beginning, but it led to some pretty good
Speaker:successes. So probably worth it in the long run. Yeah, I can imagine in the
Speaker:beginning you were probably asking him, how do you do this? And why do you
Speaker:do this? And why do we do this? And what's this about? Yeah, that's
Speaker:exactly how it was. So you're 2 and a half
Speaker:years into ZipGrow. Tell me when the idea for
Speaker:Cultivated started to brew. So even though things were going really well at
Speaker:Zipgrow, unfortunately, the product is fairly niche and can't
Speaker:grow everything. And we were getting an infinite amount of inquiries.
Speaker:It was really crazy the amount of people who were looking to get into this
Speaker:industry. But so we had to turn away customers all the time because
Speaker:they were looking to accomplish a goal that the Zipgrow system couldn't accomplish.
Speaker:And so even though the system works fine and has its applications,
Speaker:we're wondering, you know, how do we solve this problem where These people want
Speaker:to come into the industry and then I have to send them away to a
Speaker:competitor. And so that's how the idea was born to start and
Speaker:flip the model on its head, so to speak, of just partnering with all the
Speaker:best in the agtech space and then reselling, acting kind of as a reseller and
Speaker:educational tool for the people getting into the industry. Usually getting into the
Speaker:industry, the hardest component is that, like you said, it's really new. It's
Speaker:really hard to find the information. So you might have a goal of feeding your
Speaker:city with kale and basil, but you don't know which system is best at doing
Speaker:that. And having been around this long, we know which systems perform which
Speaker:tasks. And what is best for you. So when the customer comes to us, we
Speaker:advise them on that and we get paid on the back end. So our services
Speaker:are free to the customer, so they know they're getting an unbiased opinion regardless of
Speaker:what they're looking to accomplish. For the benefit of the listener, can you
Speaker:describe what Cultivated does and what your
Speaker:services are? Sure. So our main service is we
Speaker:just basically act as brokers. We've partnered with about 40 of the best companies in
Speaker:the space from hydroponic, aquaponic, aeroponics,
Speaker:container farms, lighting companies, CO2 generators, basically the whole
Speaker:spectrum. So we aim to be a one-stop shop where you can come to us
Speaker:and basically preach to us what your goals are in the industry, whether
Speaker:you want to grow something or you want to do something in a remote location,
Speaker:and then we find the best application for you. We do that service for free,
Speaker:and then we make our suggestions based on what you're looking to accomplish
Speaker:and Then once the sale is closed, we get paid on the backend from the
Speaker:distributor who we've partnered with. And talk a little bit about
Speaker:the early days as you were thinking up the idea, because the model that
Speaker:comes to mind, and I've had on season 1 Henry Gordon-Smith of
Speaker:Agriqitecture, and I know that's— he does some business, does some consulting
Speaker:services as well, as well as mapping out some ideas. There seems to be
Speaker:a bit of overlap, and I don't know if you've had this question before or
Speaker:if you can explain what some of the parallels are there. Yeah, I feel
Speaker:like their model is kind of the reverse of ours in a sense.
Speaker:So, I'm not 100% positive, but from what I can tell, they basically
Speaker:will do consulting on your project based on your goals and then charge you for
Speaker:that, and then they don't get paid on the back end. So, we just figured
Speaker:the majority of people getting into the industry are looking to
Speaker:start a farm that's smaller and local, and so maybe they don't have the funds
Speaker:to pay for the consulting upfront. And we really want to help people get into
Speaker:the industry. Regardless of what system you're buying, you're being a part of the solution.
Speaker:And so we really want to make sure that people who are coming in are
Speaker:getting the right information and the right education. Unfortunately,
Speaker:we've seen a lot of farms close within a year of them opening because they
Speaker:were not properly educated into what they were getting into. And so that's really
Speaker:the bridge that— or the gap that we wanted to bridge.
Speaker:So talk about a typical engagement when
Speaker:farmers are coming to you. How much experience do they have? How much handholding do
Speaker:you do? And, you know, talk a little bit about what those early
Speaker:conversations look like. So there's generally about 3
Speaker:different types of clients. The first is somebody who's
Speaker:tired of their 9 to 5, looking to break into this industry and do something
Speaker:that they would be passionate about. They usually have absolutely
Speaker:no clue where to start, and that's where we come in. That's kind of one
Speaker:of the major points of why we started this. And so those conversations
Speaker:take a little while. Just based on how much information they need to know.
Speaker:And that's why we basically just start every conversation with asking them what their goal
Speaker:is. Do you want to feed your entire city? Do you want to feed your
Speaker:family? Do you want to feed— what is the goal? What is the end goal?
Speaker:And then from that, I can start to spin off some ideas, and then whichever
Speaker:one interests them, we can kind of dig into that one more and more until
Speaker:we find the right fit. And then we have customers coming from traditional
Speaker:ag who are seeing that this is now kind of an undeniable thing that it's
Speaker:growing and that they want to at least explore it to not fall behind and
Speaker:to see if there is some benefit to having partially outdoor
Speaker:and indoor ag. Those conversations are a little bit simpler because they understand ag as
Speaker:an industry, and so that's a little bit of a different conversation.
Speaker:And then we have the mega corporations where we're dealing with huge, huge,
Speaker:huge projects, plenty-sized farms at
Speaker:100,000+ square feet where they're looking to feed
Speaker:You know, entire cities from one project. So we're
Speaker:consulting on quite a few large projects at that, but for the most part, it's
Speaker:people looking to leave their 9-to-5s from what we've seen. Those little—
Speaker:I don't want to call them little farms, but looking to feed their local communities
Speaker:and make a direct impact where they live. Yeah, that's really interesting
Speaker:because I think people sometimes underestimate the impact that you can have
Speaker:by starting small with some of these container farms. And Do
Speaker:you get a sense that people are coming at it from people who have been
Speaker:entrepreneurs before? You mentioned 9 to 5, but maybe they had
Speaker:started a small business or a franchise before, or are they literally coming in
Speaker:where this is the first time they're going to be in business for themselves? A
Speaker:lot, it's the first time they're going to be in business for themselves. There's something
Speaker:romantic about this industry where when you see the plants growing indoors, I don't
Speaker:know, it's the same. I fell in love right away when I saw it, and
Speaker:I feel like there's a lot of that. And you can see it online, but
Speaker:seeing it upfront and right in your face is— there's just something
Speaker:to love about it where you can feel like you're really actually making
Speaker:a change in the world. And then when you really learn about the problems, which
Speaker:I wasn't very educated on, unfortunately, beforehand, of how much water
Speaker:shortage there is in the world and how there's no more arable land, population will
Speaker:grow by 50% by 2050, and we need to grow 100% more
Speaker:food. These are problems that cannot be addressed in any other way.
Speaker:So this industry is coming whether you like it or not. And I think that
Speaker:people are realizing that. It's time to adapt now because we're
Speaker:running out of time. How much of it do you see as
Speaker:an opportunity for a company like Cultivated to actually
Speaker:provide more education for people about what the opportunities are?
Speaker:Because if you're new to this industry, and you're, to your
Speaker:point, discovering it like you did the first time, there's probably a lot of questions
Speaker:you have, and probably a lot of material you can provide for people
Speaker:before they even come to you to say, like, is this something you've been thinking
Speaker:of? Well, you should probably ask yourself like these 10 questions or something like that.
Speaker:Yeah, so we're developing materials like that right now. Our team is still
Speaker:relatively small. And so it's been, you know,
Speaker:it's a good problem to have, but there's always more work, more work that can
Speaker:be completed. And so we actually do have somebody who's
Speaker:making these educational components for us right now. We're launching our own YouTube, we've got
Speaker:all our social medias that's pumping out educational information all day long.
Speaker:We're really aiming to be that educational component because one of the
Speaker:biggest issues is that when you come into the industry, If you
Speaker:don't know and you just jump in headfirst, there's a large
Speaker:chance that you might not succeed because you don't know what you're getting yourself into.
Speaker:And that romance component really can lead you to believe that, like, wow, this
Speaker:is gonna be so simple, it's automated, I'm just gonna grow, all these plants are
Speaker:gonna grow themselves, and, you know, I'll feed my community. But there's still a
Speaker:lot of hard work that goes into this. I think one of the things new
Speaker:farmers that come into this industry, or may not realize
Speaker:is in addition to learning all the intricacies of how to grow
Speaker:and how to maintain and how to, you know, keep the lights on, so to
Speaker:speak, once you do have a crop, you actually have to go sell it
Speaker:somewhere if you're not using it to feed a specific audience.
Speaker:And I'm wondering if, you know, you address those, those challenges that people may have.
Speaker:Absolutely. So we have also a few different packages that
Speaker:we offer. More than just what we're doing here. We found
Speaker:another issue, like you just mentioned, was that a lot of people will be really
Speaker:good at the farming component when they get into it, even though they have no
Speaker:experience, but they won't be so good at going to sell, or less interested in
Speaker:going to sell, or the complete opposite— they don't really want to grow it
Speaker:once they get their hands dirty, but they really love going and selling the mission.
Speaker:And so you really need to marry the two together. So we
Speaker:offer farmers as a service We have about 4 or
Speaker:5 farmers on staff right now who have been growing in hydroponic systems for a
Speaker:few years, and basically we'll rent them to you for 3 months to a year,
Speaker:or even as a full-time position. So when you're investing this money,
Speaker:if you want to train yourself or to train somebody else to be your farmer,
Speaker:we'll send somebody there to make sure that there are no hiccups in the first
Speaker:3 to 6 months of operation so that you're successful. And then we even offer
Speaker:marketing packages where we'll do your branding, we'll do your logo, we'll explain to you
Speaker:how to go into grocery stores and sell because we've done it in the past
Speaker:with our other companies. So like I said, we're really aiming I think we've got
Speaker:some pretty ambitious goals, but we want to hit the full spectrum where we can
Speaker:support you head to toe regardless of what your plan is. Yeah, that's
Speaker:really helpful because— and I'm wondering if that's the, the salesperson
Speaker:inside of you, you know, thinking of like all that experience you have and how
Speaker:you can educate people and probably help them work through that
Speaker:nervousness, especially if it's like we— as we talked about earlier, sales
Speaker:is not a skill that most people are born with. Yeah, absolutely.
Speaker:It's a lot to to chew, I guess, but
Speaker:there's so much to learn and I feel like we've done the
Speaker:legwork ourselves so that we can adequately prepare you
Speaker:for what you're getting into. And so it's really, it's a
Speaker:complex kind of procedure to get from point A to point B.
Speaker:And we want to make sure that when you're getting into this, you really know
Speaker:what you're in for. And so we want to address everything
Speaker:from the growing to the sales side, to the marketing side, because you
Speaker:need every component to go right for you to be successful. And so that's
Speaker:why we wanted to offer all these packages like the farming and like the marketing,
Speaker:because we know that obviously not everyone is great at everything. My partner and I
Speaker:are polar opposites of each other. I'm really good at the sales and
Speaker:business and marketing development stuff, and he's really good at the technical
Speaker:side and the analysis and all of that. And so
Speaker:we don't work without each other in a sense, and we understand that just because
Speaker:you're starting a farm and just because you're passionate about the industry, it doesn't mean
Speaker:that you have every single thing available to you and you're great at
Speaker:every aspect of it. And so that's why we want to be able to have
Speaker:somebody on our staff who's able to offer you support regardless of what
Speaker:portion you may not be so good at. It's interesting, the farmers as a service
Speaker:that you're offering. Do you now have people who are interested in
Speaker:working in that capacity for you? It's almost like freelance farmers. And so,
Speaker:yeah, you probably have people excited to try that out. Yeah, we
Speaker:are hiring for that position. We cannot get enough farmers on
Speaker:staff for that. We have so many requests, almost every single request,
Speaker:especially for the larger projects where they're going to need multiple farmers,
Speaker:they are investing so much money they are incapable of
Speaker:taking the chance on just hiring somebody new. The problem with this is that
Speaker:it's hard to find somebody with experience in vertical farms. So we're actually planning on
Speaker:launching a farm here where we will be able to train, train new farmers
Speaker:so that we can send them off. And we're actually partnering with another company, possibly
Speaker:in the near future, to offer training at their facility near us. So
Speaker:we are always looking for people in that capacity. But it is a pretty cool
Speaker:opportunity. We at ZipGrow operated a farm
Speaker:for a full year in Switzerland, and we were sending farmers there on a 90-day
Speaker:visa to operate it. And so it's a pretty cool opportunity to get paid
Speaker:to go live abroad and grow plants. So yeah.
Speaker:What's interesting about that model is for people that are interested in getting into the
Speaker:industry, it's a way to get hands-on experience and
Speaker:travel to a different country, but also like learn because probably
Speaker:each installation, whether from a container farm to the big
Speaker:mega farms, they're working with different technologies, you know,
Speaker:different tools. I can only imagine, like, the resume you build
Speaker:up as one of these freelance farmers if you start to work on these multiple
Speaker:projects. You know, you do a year or two of that and you start to
Speaker:become pretty attractive to some of these other companies, I would imagine. Absolutely.
Speaker:The consulting fees that, that these guys can command is crazy,
Speaker:and there's such a need for them because the industry is blowing up so fast,
Speaker:and there's not enough of these individuals out there. So anyone going
Speaker:to be a farmer somewhere, it's going to be a really lucrative position. And like
Speaker:you said, you get to— if you're not tied down, you can travel the world
Speaker:and work with all these different systems. And it's a pretty cool,
Speaker:pretty cool thing. Very nice. The second type you mentioned was the
Speaker:folks that are coming from traditional agriculture. When they
Speaker:see these systems, you know, how much exposure have they
Speaker:had, and are they surprised that really what is
Speaker:possible with controlled environment agriculture? Yeah, so when I
Speaker:started in the industry and we would bump into traditional ag,
Speaker:they seemed a little standoffish and they didn't want to admit that there could possibly
Speaker:be something better out there. But indoor ag was
Speaker:never meant to replace outdoor ag.
Speaker:It's, you know, it's something that needs to work in conjunction with outdoor ag
Speaker:so that we can all get to the common goal of saving the
Speaker:planet and growing more food and being healthier and fixing food supply chains.
Speaker:There are a a lot of issues that are being addressed by indoor ag, but
Speaker:it's never going to replace outdoor ag. So, in the beginning, I think there
Speaker:was a little bit of animosity there, but it seems like it's coming
Speaker:around for the most part. What's different in the
Speaker:engagements you have with this second tier of folks coming from
Speaker:traditional agriculture? Because the people who are coming from a
Speaker:9-to-5, it's almost like they have to learn a lot of different skill sets.
Speaker:So, when you're talking
Speaker:to the people who are from traditional ag, I guess they're looking at numbers
Speaker:and just kind of the bottom line a little bit more. They already know how
Speaker:to sell the produce, so they don't have any issues with that. If they're growing
Speaker:lettuce or what have you in a field, they already have the distributors and they
Speaker:have the contracts to sell. So, whether it's being grown indoors or outdoors, that's not
Speaker:going to change. So, they're basically just looking to get to that bottom line. line
Speaker:and see, okay, what is the return going to be? Is this going to be
Speaker:better? What crops can I move indoors versus what I'm growing now?
Speaker:Or maybe they're growing something that can't be grown indoors, but they would like to
Speaker:branch off into something that can be grown indoors. And so the conversations are
Speaker:a little more straightforward, I guess. Yeah. Has it been far enough
Speaker:along where you're starting to see that conversion of, you know,
Speaker:their traditionally arable land that's been converted into
Speaker:either a hybrid or a fully converted over model of indoor
Speaker:ag? We haven't converted anyone fully away from their outdoor ag,
Speaker:but we have had some people launch in conjunction. So they'll have their traditional
Speaker:farm and then they'll have converted a large barn into an indoor ag
Speaker:project where they can grow something else. I think it's more of kind of an
Speaker:exploratory phase for them right now, but we're hoping to see some
Speaker:real adaptation there in the future. And then the third tier that you mentioned was
Speaker:the megacorps, the mega farms, and what's different about the types of
Speaker:conversations you're having with them at that level? So these conversations are
Speaker:obviously a lot different. They're looking to invest hundreds of millions of dollars in some
Speaker:cases. Most of them will be somebody who's a huge food retailer and wondering
Speaker:if they can grow their own produce instead of buying it from somebody else
Speaker:and kind of skip the middleman and become that themselves to cut down on their
Speaker:margins. These conversations obviously take a really long time.
Speaker:Applications at that size are a lot different, and we're still kind of figuring
Speaker:that out as an industry, I would say. But we are
Speaker:getting a ton of interest from huge businesses like that, a ton, especially like
Speaker:large grocery store chains that are looking to potentially grow their own produce
Speaker:and distributors. And they're really looking to crack the code and see if,
Speaker:you know, big companies like that obviously care about their bottom line a lot, and
Speaker:if they can make a dent in that, they'll listen to anything.
Speaker:Yeah, because in the same way you're training, like we talked about the farming as
Speaker:a service, there's nothing to say that they just couldn't have a
Speaker:farmer on staff who could basically
Speaker:manage their own farm for theirs and to your point,
Speaker:save a lot in terms of— and also just the whole supply chain becomes
Speaker:incredibly shortened. The produce is actually fresher. They have that
Speaker:direct connection to the source of their food, which I think is something they're probably
Speaker:finding that's attractive to them. Yeah, exactly. So they would be buying their own supply
Speaker:of food so they don't have to worry about growing too much or growing too
Speaker:little or even the sales process or any of that. So they're basically
Speaker:skipping a step there and then The average food, I
Speaker:believe, or the average produce travels about 2,000 miles anywhere in the
Speaker:world right now. So, by the time you get your lettuce or what have you,
Speaker:it's lost its nutrients. The shelf life is 4 or 5 days. Whereas, when
Speaker:you're harvesting it here, you can cut a head of lettuce or kale and put
Speaker:it in the fridge for 25, 30 days and it's still edible, which is a
Speaker:concept that's so foreign to people because they've never known differently.
Speaker:That's fascinating. Does any example come to mind of some of the
Speaker:conversations you've had recently out of either one of those tiers that's a recent success
Speaker:story? We just sold a fairly large farm in
Speaker:Canada to somebody. I believe he
Speaker:just retired from his job and he just wanted to do good in his
Speaker:community. And he said, you know, I've got some money saved up, I'd like to
Speaker:hire some local kids, and I've been looking at this industry. I
Speaker:think maybe his daughter had been growing in hydroponics just a little bit and kind
Speaker:of getting her feet wet and he wanted to support her. And so, we just
Speaker:went through the process over the last month and a half, it was relatively quick
Speaker:process actually, and that will be installed in the very near
Speaker:future. So he's just looking to— he's already talking about expansion,
Speaker:but he's really excited to get going and be able to hire kids and kind
Speaker:of show that there's a better way of doing things. That's really fascinating and
Speaker:exciting. Can you talk a little bit about the partnerships now? Because you've mentioned
Speaker:several companies that you've worked with and you continue to work with. As you
Speaker:were starting Cultivated, you were mentioning yourself that you were
Speaker:relatively new in this industry. How were those early conversations happening
Speaker:and how were some of these partners looking to cultivate it and trusting
Speaker:that this was an organization that was going to be around for a while, that
Speaker:this was someone that, you know, they could partner with, especially for their own growth?
Speaker:Yeah, so when I was at ZipPro, I was fortunate enough to go to a
Speaker:lot of conferences and meet some of these other companies, and we also worked in
Speaker:conjunction with some of them. So we wanted to offer greenhouse solutions, which is
Speaker:how we partnered with Ceres. I had had some conversations with them, plus I have
Speaker:a lot of friends in the industry just from kind of bumping into them. And
Speaker:so we also worked with different lighting companies that also wanted us to be a
Speaker:reseller. And so once we got the ball rolling, we actually found that companies
Speaker:were reaching out to us more than I had to go and knock on their
Speaker:door. So now we are getting inquiries all the time from
Speaker:companies saying, hey, we wanna get listed, we wanna join, we love what you're doing.
Speaker:I mean, they're essentially getting a salesman without the, without the
Speaker:salary. So pretty win-win for everybody. I think that's one
Speaker:of the things, this show actually launched in the middle of COVID and I think
Speaker:that's one of the things that the industry has been mentioning that they miss the
Speaker:most, the conferences and the ability to meet, you know,
Speaker:fellow folks in the— fellow farmers as well. I'm sure it's
Speaker:been a while since you've met some of your colleagues in person. Is that one
Speaker:of the things that you're looking forward to as well? Yeah, we're really excited to
Speaker:get to a conference, especially with the new company. We haven't been to a conference
Speaker:as of yet, except we've done a few online ones, but it doesn't have that
Speaker:same feel and that same appeal. So Cultivated is hitting
Speaker:the ground running, so to speak. Can you talk about plans for growth. You're
Speaker:still a small team right now, and how you think about
Speaker:growing the team, which, you know, departments you're focused on,
Speaker:and what, if anything, you learned from your experiences at Zipgrow on
Speaker:how to make those hires the right way. Yeah, we have a
Speaker:team in mind, I guess you could say. We conducted interviews before we
Speaker:even really got the ball rolling, just to be able to have people ready to
Speaker:go, and we were able to grow out of where we are now. We actually
Speaker:just closed a round of investment a few weeks ago just
Speaker:to mostly use that money for marketing dollars and to grow the team a little
Speaker:bit. So, we're really excited. I think you're going to see some really big growth
Speaker:out of us in the near future. The majority of people we're bringing on, like
Speaker:we said, are farmers, but most of those are contractual. So, they also
Speaker:help on the education side and develop those materials. And then, mostly just
Speaker:a sales team because the entire model kind of revolves
Speaker:around that. And then obviously we have some marketing and social media
Speaker:that's also part of the team. And so how do you think about
Speaker:the advances in all the technology aspects
Speaker:of vertical farming, right? Because there's advances in, in the hydroponics, there's advances
Speaker:in lighting, in the climate control. Do
Speaker:you feel like it's really just relying on the
Speaker:partners that you're working with to, you know, maintain like best
Speaker:practices, and then you as sort of the broker to
Speaker:understand, based on what people's needs are at the time they come
Speaker:to you, which of your partners are going to be a good fit depending on
Speaker:what technologies they're working on? Yeah, so we've been in the industry long
Speaker:enough to be able to have a good understanding of what our partners
Speaker:do. We've vetted most of the technology. We've flown out when
Speaker:possible to go vet the tech and to make sure that the partners we
Speaker:were partnering with were the right people. But there's definitely
Speaker:We tried to pick partners based on who would be able to evolve with us.
Speaker:So most of these companies are looking to, you know, not
Speaker:be stagnant. They want to evolve, they want to update their products, they know the
Speaker:industry is moving really quickly. And so that's kind of how we tried to pick
Speaker:our first partners. It's just anyone who is willing to adapt. So we've worked
Speaker:with some companies where even at ZipGrow, we were discussing that we
Speaker:needed some changes in controller or what have you. And so some
Speaker:young, hungry companies were able to adapt and follow the trends of the industry
Speaker:is who we really want to be working with. Who do you follow, or how
Speaker:do you keep on with trends and eye towards like what—
Speaker:because it's, to your point, it's changing so fast, technology's changing so fast, a
Speaker:lot of people come, new players coming into the space. So what are you doing
Speaker:as an organization or even individually to keep up to date with what's
Speaker:happening? Yeah, it's a little complex for that. Like I said, the
Speaker:team is, is not where we need it to be as of yet. But we
Speaker:have really good relationships with everyone that we've partnered with. You know, I know
Speaker:everyone really well personally, and we speak all the time. I'm on the phone
Speaker:pretty much from the time I open my eyes until I close them again. And
Speaker:so the conversations are really good. All of our partners are
Speaker:really willing to adapt. And so it makes my life really easy.
Speaker:Everyone in this industry seemingly that I've met is just like so kind and
Speaker:so easy to work with. And it's made the transition
Speaker:so simple. We're hoping that's the trend that continues, and we're seeing
Speaker:more and more partners and more companies. We want everyone to succeed. Like I said,
Speaker:everything and everyone getting into this industry is looking to become
Speaker:part of the solution. And so, we just want to help in any
Speaker:way that we can. When you think about the pace at which you want to
Speaker:grow Cultivated, you did mention an initial focus is going to be on
Speaker:the sales team. Is there anything else that you feel like you should be looking
Speaker:out for, or anything that might be an area of concern? And, you know, obviously,
Speaker:there's always the worry that you might grow too fast and not make the right
Speaker:hires. Yeah, we definitely don't want to do that. We're, we kind of want to
Speaker:make sure that we don't outpace ourselves. So we're pretty
Speaker:careful with that. My partner had, I think this is his 4th
Speaker:agtech venture. And we've been in business for a little while now.
Speaker:And we've found some pretty good success by taking our time. So we're just
Speaker:looking to kind of replicate that and just to make sure that we We're
Speaker:really cautious and that we do grow with the right team. We've been
Speaker:fortunate, very fortunate in the past of really hiring the right people.
Speaker:And so the team that we have right now is amazing, and we have a
Speaker:couple people in sight that we'd like to bring on in the near future. And
Speaker:so we're hoping that that'll be the right fit as well. Having
Speaker:been new to the industry and literally coming up to speed very, very
Speaker:quickly, this is now your second agtech company that you're
Speaker:working in. Can you think of any relationships or any
Speaker:people that you've met that would fall under the role of like mentor Or someone
Speaker:who's helped you along the way? My co-founder, for the most part, since he got
Speaker:me into the industry. But we had conversations with a lot of other
Speaker:companies. Nicola at Contain, I was actually just speaking
Speaker:to her earlier about this company. Yeah, she's been really awesome to work with. And
Speaker:so there have been quite a few people. Everyone's really open to having the
Speaker:conversation. It seems like this industry is growing really quickly,
Speaker:but no one is really cutthroat. I think everyone really understands that It's for the
Speaker:greater good. And so people are generally pretty good about helping each other.
Speaker:Yeah. And I wonder how great that is because it's not something that you hear
Speaker:of a lot of industries. And I think it's exciting probably when people
Speaker:understand that you can pick up the phone and call one of your colleagues in
Speaker:the space and ask them for advice. Because I think the consistency that I've
Speaker:seen throughout these conversations is that everyone feels like everyone else is
Speaker:needed to solve this food shortage problem and this You know,
Speaker:distribution problem, and there's a whole list of things that can be fixed.
Speaker:And I think the more people that are in the space, and that's what I
Speaker:hear consistently, the better for everyone. Yeah, I think
Speaker:maybe it's because the industry is still so new, but it just feels like there's
Speaker:room for all of us. So everything has been simple
Speaker:because of that, I think, but there's still so much room to grow.
Speaker:There's no need for anybody to really be cutthroat or manipulative in any of these
Speaker:situations. So it's really nice to be able to call even a competitor
Speaker:or whoever and just have open discussions about something like this. So
Speaker:we've really had no issues in launching this, and even when I was at
Speaker:ZipPro, we never really had any issues with anybody else. So it's kind of
Speaker:nice to see. Maybe it's just, uh, you know, I haven't been in
Speaker:business super long, so I've been pretty lucky to have everything go so
Speaker:smoothly this far. But we're super excited for what the future
Speaker:That's great to hear. What's a tough question you've had to ask yourself
Speaker:recently? I guess maybe just in terms of how quickly
Speaker:we're growing. I think we kind of touched on this too, but just being cautious
Speaker:that we don't— or that we do it the right way. It's easy to
Speaker:get blinded by how quickly you grow. So, you
Speaker:know, we make a few sales and we raise some money, and it's easy to
Speaker:just think of jumping right in headfirst and just
Speaker:hiring a bunch of people and going all out and seeing how
Speaker:fast you can get there, but it's really important to stay grounded and to make
Speaker:sure that you do it the right way so that you have continued success and
Speaker:you're not just kind of a one-hit wonder, which is what we really want to
Speaker:achieve here. Yeah, that's a very good point. You mentioned earlier that
Speaker:you were an avid reader. Do you still have time to read? So
Speaker:yeah, I kind of have the problem where every time I go to a
Speaker:bookstore or walk by a bookstore, I'll buy a bunch of books and they just
Speaker:end up on the shelf. Because I have enough time to read them all. And
Speaker:most of my reading now is consumed by stuff in the agtech industry, so
Speaker:more of a kind of an articles than novels. But every once in a
Speaker:while, I manage to sneak one in. What's something you've read recently?
Speaker:I actually just read Houdini's biography. Oh, very nice. Yeah,
Speaker:do you like biographies? I will read basically anything I can
Speaker:find. Have you picked up all the cool tools
Speaker:for how to make your reading more efficient? I'm a bit of a productivity nerd,
Speaker:so there's a Chrome plugin called Instapaper. So
Speaker:if you're reading a blog post, you can literally tag it and it'll save it
Speaker:for later. I've used Blinkist, I think it's called, where it'll just
Speaker:like flash the one word. Yeah. Oh yeah, yeah. And then you can read like
Speaker:300 words a minute or something. Yeah. Yeah, I used that for a bit.
Speaker:It's like, it's a little tiring, but yeah, it's like kind of an
Speaker:information overload. But it's cool that we're heading towards stuff like
Speaker:that. Well, there's Instapaper, and then another tool that I like is Readwise.
Speaker:Readwise connects to all your reading services. So Pocket, Instapaper,
Speaker:Kindle. So when you make a highlight in a Kindle book,
Speaker:it'll surface in your Readwise. And then Readwise is an app on your
Speaker:phone, and every day it says, hey, do you want to look at all your
Speaker:highlights from all the books you've read previously? And so it's a nice way to
Speaker:kind of like resurface like the best parts of the books that you like.
Speaker:Yeah, that's cool. I'll have to check that out for sure. So, well, I want
Speaker:to thank you for taking the time. I'd like to also announce that, uh, We
Speaker:are partnering with Cultivated for season 3 to sponsor the Vertical
Speaker:Farming Podcast, so I want to thank you and Eric for that, and looking
Speaker:forward to spreading the word about what you guys are doing at Cultivated. So
Speaker:we'll have some more to come from that in a future episode. But
Speaker:what has you most excited when you think about the future of vertical farming?
Speaker:I think we're most excited, honestly, about the education component. We just want to
Speaker:make sure that everyone who's getting into this is getting the right fit for
Speaker:them. Everyone who's getting into this has a passion to do good,
Speaker:and so they deserve to be educated properly so that they have the best
Speaker:chance of success. And so that's really the main component we want to focus
Speaker:on. That's what we're most excited about. We have all this knowledge, and it was
Speaker:not super easy to come by, and we are able to speed up that
Speaker:process and really educate everyone coming in. So that's what we're looking to do.
Speaker:So where's the best place for folks to learn more about Cultivated
Speaker:and to connect with either you or Eric? So if you just go to
Speaker:cultivated.com, you can see a list of our product offerings and reach out to us
Speaker:that way. But we've got Instagram, Twitter, Facebook,
Speaker:everything. We post on there just some little educational tidbits, posts about
Speaker:our partners, and then we've got some press releases coming soon
Speaker:for our funding and just announcing all of our partnerships. We're still relatively new, so
Speaker:we're trying to get all that out. It's a lot, but it's exciting.
Speaker:And it seems like with this new influx of the investment, we'll probably see
Speaker:more of Cultivated from a marketing perspective as well. Yeah, absolutely. The
Speaker:majority of the funding is going directly into marketing. We just want to get the
Speaker:word out there, we're here to help. So, well, Eric, thanks again for
Speaker:taking the time. I really appreciate you sharing your story and the story of Cultivated
Speaker:with our audience. Thanks for having me, it was fun. So
Speaker:thanks again to Eric for coming on the show, and thanks again to Cultivated for
Speaker:being a fantastic sponsor for season 3. If you're looking into a vertical
Speaker:farm and don't know where to start or which technology would suit your needs, Make
Speaker:sure you reach out to them today. The best part about it is that their
Speaker:service is free, and it's because they work on behalf of their partners.
Speaker:So head on over to cultivated.com, just leave off the last E.
Speaker:That's C-U-L-T-I-V-A-T-D.com. Fullcast production and
Speaker:marketing provided by Fullcast. Sign up for a free podcast brainstorm at
Speaker:fullcast.co/vfp15.
Speaker:Another reminder, if you're enjoying the show, please leave us a rating and a review
Speaker:at ratethispodcast.com/review. We'll be sure to read
Speaker:those out on future episodes. I do realize there's a lot of calls to
Speaker:action at the end of this episode, but one more I mentioned last
Speaker:week is the new chat tool we're testing out called Bunches.
Speaker:If you go to bunches.chat as the URL, forward slash
Speaker:vertical farming, we've had a couple people and listeners join recently. So
Speaker:it's an experiment to see if we can engage more as a community. Tune in
Speaker:next week for my conversation with Niko Kivioha, CEO of
Speaker:NetLed. Until we meet again, here's to your health. Thanks for
Speaker:listening. To read the full show notes for this episode, which includes
Speaker:any links mentioned in the episode, as well as a full show transcription,
Speaker:visit verticalfarmingpodcast.com. There, you can
Speaker:sign up for our email list to be notified when new episodes are
Speaker:published.
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