Eden Grow Systems

This interview details Eden Grow Systems, an indoor farming company based in the United States. The interview is with Bart Womack, CEO of Eden Grow Systems.

‍

‍

What is the origin story of Eden Grow Systems?

‍

2013, after exiting my first startup, I decided to do something else. I was seeking advice from my father, who's been in the investment industry my entire life. I shared my plan to sell my interest in my previous company and invest it in my next venture. He suggested I work for him for a year, conducting trends research to identify promising investment opportunities. I embraced the opportunity and started working between 2013 and 2014. The first significant report I came across was from Chase Manhattan Bank, outlining ten disruptive technological sectors that would be right for investment in over the next decade.

‍

‍

I was surprised to see that farming was at the top of the list of disrupted sectors. I couldn't understand how farming could be disrupted when we eat better than the Chinese and Roman emperors, feed more people than ever, and have more abundance and less hunger than at any other time in human history.

‍

I started researching farming infrastructure, and I found reports from various sources, including the British Ministry of Defense, the Pentagon, Homeland Security, NASA, and the White House. I also found reports dating back to the 1970s, which involved computer models created by MIT. 

‍

According to the MIT models, a critical scenario was predicted to occur around 2020, when the system would reach a breaking point, and the available resources would no longer be sufficient to sustain its functionality.

‍

‍

Other studies included a 2014 project that there would be a food crisis in the future due to political, economic, climate, demographic, and implosion factors converging. These factors would cause a massive disruption in the food production system, likely to last for the rest of our lifetimes due to the cycles of history and breakdowns within them.

‍

In the future, the cost of food will increase, and it will be more challenging to obtain, leading to a significant disruption. The powerful tend to offer a single solution, but when factoring in the capabilities of technocracy, the situation becomes even more perilous. This disruption could result in solutions that fundamentally strip away people's abilities and freedoms, leading to a time when people cannot control their lives and enjoy the same freedom and abundance we've always known. History leads us to expect those in power would try to solve this problem by consolidating and centralizing their control.  Still, many, but many people, including myself, would oppose this and see the dangers of allowing technological systems to dominate our lives. 

‍

‍

My inclination is that other individuals would reject this approach and seek decentralized and empowering solutions. So, it was around 2017 when I began developing the concept, and we officially incorporated it during that time.

‍

We founded the company in May 2017. I have one specific goal: creating a farming system that can operate at the end of the supply chain for the most extended amount of time without resupply, utilizing the least amount of human and electrical energy. Further, the concept could be built and operated by people without experience in creating systems using systems or understanding anything about farming. So that was the mission.

‍

‍

What are the benefits of using the system and what is unique about Eden Grow Systems compared to competitors?

‍

We are a NASA spinoff company that has taken the experiments that NASA did in the 1990s with aeroponics and brought them down to earth to make them simple and affordable for people to use. As a result, we saw a scale of one end of the industry, with products like aero gardens and gardens that are hobbyist level and can generate a salad a month.

‍

On the other end of the scale, we saw a $40 million 300,000 square foot system with towers going from the floor to the ceiling and wired together. We wanted to take the system out of the box and make a farming system that is modular, scalable,  and adaptable so that whenever someone goes into a market, they could understand what would be the most valuable or what they need to grow in that market and could begin at any scale.

‍

Our modular approach allows us to roll into old, abandoned buildings and power wash walls, air ducts and produce plants within a few weeks. This ease of use and rapid deployment saves considerable money. In addition, it eliminates the need to retrofit a facility, construction costs, and time lags of building new. 

‍

‍

The stand-alone configuration also benefits the user in many ways during use. In the unlikely event that a pathogen enters a system, or any issue arises, Eden's stand-alone design eliminates the need and expense to shut down the entire system and start all over again. All we need to do is shut down the individual tower and clean it out to continue moving.

‍

The advantages of hydroponics and aeroponic technology are; Hydroponics is very stable and simple to use, it has been around for thousands of years. Aeroponic technology allows for the cultivation of anything, whereas hydroponics can only grow lettuces and herbs. Aeroponics beats hydroponics in providing faster-growing cycles by over 33% and higher yields by 22% compared to hydroponics, verified by independent studies. Well known AgTech universities testing EGS now have shared the same distinctions.

‍

‍

Professional-grade commercial growers do use hydroponics to grow tomatoes and strawberries, which is problematic for individual users who mostly only grow leafy greens and herbs. However, Aeroponics systems offer a much wider profile of what can be grown proficiently. 

‍

Building off NASA Science and the 50 crops they successfully grew, strawberries, raspberries, blackberries, blueberries, tomatoes, okra, jalapenos, bell peppers, and all varieties of herbs and lettuces, and many of the root plants with aeroponics. We have also grown potatoes, sweet potatoes, beets, carrots, and onions.

‍

Finally, we will do grapes because we can put grapes in the system and have grapes growing within three to six months, which usually takes years before you can get a great plant to produce.

‍

‍

What are some of the biggest challenges facing your team in the future?

‍

It's funding. The current situation in the indoor farming market is facing a significant challenge in terms of funding. It can be described as in a state of disillusionment. This phenomenon is not unique to indoor farming; it has been observed in other industries. When a new industry emerges, there is a surge of excitement and investment. 

‍

However, much of this investment is based on unrealistic business models and opportunistic individuals looking to take advantage of the hype. These individuals are often referred to as "grifters," as they are essentially living off the hope and enthusiasm of others. Eventually, the market crashes, reality sets in, and investors become wary of allocating funds to this sector.

‍

The vertical farming industry is facing a financial crunch due to the aging of the baby boomers, the world's largest group of liquid capital. This period of disillusionment is a large part of the lack of investment to date in the industry.

‍

‍

As a CEO, the biggest hurdle is the need for more money to get to a million dollars in orders, which is the biggest hurdle the industry is facing. To overcome this, startups must experiment with technology and relationships with customers. However, this can be difficult due to the chicken and egg thing, where investors demand a million dollars in orders before they are willing to invest money. Yet startups are still determining if they can achieve such a significant order amount without initial investment.

‍

The technology is impressive, and the relationships Eden has with major universities, Texas A&M and Dr. Sutte, the head of plant research at NASA for 20 years, are advisors to the Eden project. The company is trying to get out of a valley and get past this inflection point. We have raised about half of what we need this year, out of a 1.2 million raise, and once we finish this race, the company will be able to self-sustain itself without any more investment. 

‍

We have achieved impressive sales of over $250,000, nearly $300,000. We did not allocate any budget for advertising, and our sales have been generated through word of mouth and interviews. However, we still need additional investment to complete our manufacturing process and enter the market, enabling us to scale up production and make significant progress in reaching our goals.

‍

‍

How do you measure the impact of your company so far? (Revenue, Employees, Customer Quantity, Production Volume) etc?

‍

Institutions aligned with communities, Organizational Sponsors, Consumers, Commercial Growers, and Prepper networks are our focus for creating a decentralized food network around the country, After the events of the last couple of years and the rising awareness in the fragility of the supply chain, they are galvanized to become even more responsible and willing to spend money to ensure food security. These groups are motivated by advanced technology and the value of our solution. These midterm to long-term plays will take us to the next level.

‍

We have a project with the US Air Force (an MOU) for a $1.2 million contract to do a gross system on Ascension Island in the middle of the Atlantic. A national mega church is doing a pilot program with three towers as a BETA for a full grow operation at their main campus in LA. They only want to work with one vendor, and put us in every church in the country that they have.

‍

‍

We are working with H ISD, HCC, and local colleges to provide a comprehensive ag training program that starts in kindergarten and goes up through college. For example, Texas A&M is looking to build a vast growth facility at their Prairie View campus to grow over a million pounds of produce annually. They are buying and testing out our products before making larger purchases.

‍

Three example groups have gotten their first towers tested them, and are happy with them. In the next six months to a year, they will deploy the time to start half a million to $3 million operations. People are often limited by what they can see.  So, to date it has been a slow process.  Once we can show them a room with 50 towers and 1000 towers, they will be able understand much more of this opportunity quicker.  To be clear with EGS these large numbers are not required to reach profitability. Profitability is very doable with one Eden Grow tower.

‍

‍

On a grander scale no matter what method, results in profitability will always vary depending on the crops and part of the world where they're growing.  To be clear, with the Eden Grow System, our aeroponic standard produces the fastest grow cycles, and highest yields over any other method.

Once we break through and some large organizations have their bigger setups, other organizations will be more comfortable making big outlays. However, people are skeptical and want to do it, but on a large scale it is important to establish a business case to validate their decision, then scale up with confidence to higher levels. 

‍

Another great aspect of our system is that they are intentionally designed to an exceptionally high standard of quality, with an estimated 10-year life cycle.  This is a quality and reliable tool to possess. Once the user is convinced and makes their purchasing decision, they will remain positively convinced for a long time. Enjoying what they purchased, realizing optimum versatility and results with no prior experience and minimal risks.  They can look forward to adding new capabilities such as growing flavorful microgreens, for example, as they become available.

‍

‍

What's the typical investment for a single tower?

‍

We have five different units, which go between $3,000 and $5,000 per unit.

‍

What have you learned that you wish you knew when you started the company?

‍

Things are often more challenging than anticipated, but persistence is crucial. Startups are notoriously difficult, where the possibility of complete failure looms every day. Nevertheless, you acknowledge this risk and continue progressing. Regardless of your obstacles, your focus remains on finding ways to maintain momentum and push everything forward.

‍

‍

How can people connect with you or learn more about Eden Grow Systems?

‍

People can visit us at https://edengrowsystems.com to learn more about the company, products, and services. In addition, they can sign up for our newsletter. All of our sales information is on there. They can also follow us on Social Media: LinkedIn, Instagram, Facebook, and YouTube.

‍

‍