CAPSERO 

This interview details CAPSERO, an indoor farming technology company based in Switzerland. The interview is with Fabio Cirillo, Founder & CEO of CAPSERO.

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What is the origin story of CAPSERO?

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I've worked with green tea, star anise,  dyer's weed, and many other plants in natural chemistry for a long time, and since environmental factors can't be 100% controlled in cultivation, a plant always develops a little differently.

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I am Fabio Cirillo, founder and CEO of CAPSERO. I am a chemist and process engineer by training, an amateur astronomer and always enthusiastic about technology, curious, and willing to explore new ways to solve old problems. I grew up in the various Big Pharmas of the world and worked in international project management in Europe, the USA, and Asia, especially in the construction of large-scale pharmaceutical and natural product manufacturing facilities.

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With blood, sweat, and tears, we literally built huge production facilities for several hundred thousand tons of product per year. In this context, of course, I have also been intensively involved in natural product chemistry and am the inventor of many patents, and have been significantly involved in drug approval. "The recurring problem in natural product extraction was the procurement and quality control of plant starting material. In my case, this meant stopping production equipment, analyzing the plant material, and readjusting the process. One can imagine the costs associated with such a disruption in production.

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

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Scaling manufacturing to answer on time the market demand.

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The market demand is remarkably robust, which is a highly favorable situation for us. In addition to receiving letters of intent, we find ourselves in the position of attracting multiple clients who are keenly interested in our technology. To clarify, we serve as a technology and plant starting material producer. We do not engage in the actual cultivation of plant material; that decision lies with our clients. 

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The standard capacity we offer begins with a single container. Each container can accommodate a minimum of roughly 1,000 plants, though the precise number may vary depending on the size and spread of the plants. For particularly small plants, we can fit up to 9,000 plants in a single container. Our equipment is designed to scale accordingly. I can demonstrate this visually on the screen. This capsule represents the actual size, and we provide anywhere from 1,000 to 9,000 of these capsules per container.

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Currently, we face a substantial scaling challenge. To meet the demand and supply our clients with capsules effectively, we opened another round of financing to automate and scale our operations. This situation is somewhat reminiscent of the Nespresso or Keurig systems, where the coffee machine is worthless without the specific capsules. Similarly, our capsules are essential, but their utility only becomes apparent when opened and used as intended.

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Are there currently full-scale operational systems? 

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Yes, we've successfully deployed the first container during an inauguration party to our first client. At present, we're actively accumulating an extensive dataset from this initial full-scale container deployment to prove the stability, reliability and parameter controls in real-world use. Simultaneously, we're in the process of manufacturing the second container, and there are pending orders for 20 more containers on our agenda.

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Is the company exclusively focused on the European market now?

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Currently, yes, because it's very close to our site here in Switzerland. However, our ambitious business plan involves expanding our reach to encompass the United States, Canada, and Latin America. Subsequently, we plan to venture further, circling back eastward towards regions like the Middle East, eventually extending our presence into APAC-markets like China,Japan and Australia

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What is unique about CAPSERO compared to competitors?

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Apart from the unique technique and patent pending technology, CAPSERO’'s technology offers the following advantages for clients:

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• Validated and certified equipment

• GACP license at the push of a button

• DNA-based plant database with full documentation

• Contamination-free introduction of clones

• Earnings security through insurance partners

• Fully automated, AI-supported, software-based

• No traffic areas

• Modular, scalable and stackable

• Financial Services

• Sales support via automated online trading platform

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Do you provide insurance services to the clients? Could you provide some information about the insurance partners?

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While we have a high level of confidence in the reliability of our technology, unforeseen events such as power outages or water shortages can still occur. This is particularly concerning in the case of prolonged energy blackouts, even though we have implemented redundant systems to mitigate shorter disruptions.

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In the event of a 24- or 48-hour blackout, our energy resources would be depleted, jeopardizing the well-being of our crops. To address this potential risk, we have insurance coverage in place. In the event of a catastrophic scenario like this, the insurance will come into play and provide compensation for crop losses. This means that while you may experience a loss of crops, you won't incur financial losses, as you will be reimbursed for the value of the crop loss in plant material, ensuring you have the necessary funds to recover.

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

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Currently, we are measuring it via revenue and quantity of installed containers. In the future, we will measure it on ESG parameters, such as saved energy, saved water, CO2 reduction, and more.

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Our team consists of four members, with two of us serving as the founders. In addition to us, we have brought on board two colleagues. Presently, our operations rely heavily on external contractors; however, we are now strategizing a shift toward internal knowledge. We aim to gradually transition our focus from external contractors to in-house expertise. This involves expanding our team to ensure that knowledge is retained within our organization rather than relying solely on external contractors.

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The current objective is to have 20 operational containers.

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

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There is a big educational gap in how plants can be cultivated in-vitro when talking to clients.

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Having a background in the pharmaceutical industry, I've always believed that when operating in a regulated field, one should have a clear understanding of the governing regulations. However, I've come to realize that there is a phenomenon known as "GMP washing," akin to the concept of "greenwashing." In GMP washing, certain crops are manufactured without adhering to even the basic Good Agriculture and Collection Practices (GACP). Then, seemingly out of nowhere, these crops receive certification against the  Pharmacopeial monographs, leaving one to wonder how this certification appeared so suddenly.

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The consequence of this practice becomes evident when issues like mold and fungus contamination arise, which directly contravene the principles of Good Manufacturing Practices (GMP) and regulated industry standards. This revelation highlights a critical gap in industry knowledge concerning regulations. To be candid, I am genuinely surprised by the extent of this problem with GMP washing. It is a very real concern.

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Another important point to consider is our ability to preserve product quality. We not only control the cultivation environment but also possess a deep understanding of how it impacts plant growth and development.

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Furthermore, it's noteworthy that our water and energy consumption is exceptionally low. This efficiency not only minimizes resource usage but also significantly reduces operating expenses. When you factor in the energy-efficient lighting and the limited water required for plant nutrition, it becomes apparent that this approach positively impacts overall financial sustainability.

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How can people connect with you or learn more about CAPSERO?

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Website: https://capsero.com

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Email: info@capsero.com

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LinkedIn: https://www.linkedin.com/company/capsero/

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