Two Indoor Farming Stocks For FoodTech Investors
First it came for electric vehicle companies, and we did nothing. Then it started to swallow the commercial space industry, and we did nothing. Now there are hints of a new target – indoor farming companies. Will it be different this time? Probably not. In fact, it’s the same old story: An emerging technology sector with a handful of really well-funded startups that are burning through greenbacks and have yet to make a dime turn to special purpose acquisition companies (SPACs) for a shortcut to the public markets and a bundle of free cash. Everyone lives happily ever after (assuming we’re not including retail investors).
The Green New Deal
It’s not surprising to see blank check companies making a bull run at indoor farming, as green technology has been a favorite target of these reverse mergers. One reason is that many of these ventures require huge amounts of capital to scale manufacturing and production. The new administration is also bullish on the sector, which has greentech investors under the impression that anything with the sheen of being climate friendly can’t fail. Conversely, there’s also the allure of high-risk and high-reward potential with the latest gee-whiz technologies that seem too cool for school.
