Layoffs Hit Freight Farms As It Shifts Focus To College Campuses

By: Dylan Martin

September 28, 2017

Freight Farms, the Boston startup that makes automated farms in shipping containers, laid off seven employees Monday to focus on its growing segment of college campus customers as some other initiatives foundered.

Brad McNamara, Freight Farms’ CEO and co-founder, confirmed the layoffs to BostInno Thursday. Axios’ Pro Rata newsletter first reported on the layoffs earlier this week, but McNamara said there were some inaccuracies in the initial report. He said there were no executive departures, as Axios had reported, and that the only recent departure was Austin Coffin, a sales manager who left to pursue a larger role at another startup.

Freight Farms raised a $7.3 million Series B led by Spark Capital in July, which brought total funding to $12 million. The company has now deployed more than 150 of its Leafy Green Machines, which costs $85,000 and can produce 1,000 heads of lettuce a week.

The layoffs, which amounted to roughly 18 percent of the company’s 38-person staff, were the result of the company’s decision to shift its focus from some research and development efforts that weren’t panning out to its growing segment of college campus customers, an area that started seeing more traction by the end of last year. College campuses are using Freight Farms’ containers to supply their dining operations.

“THE REAL OPPORTUNITY THAT IS GROWING FAST IS THIS SPACE IN THE INSTITUTIONAL AREA.”

The first deal seemed like an outlier, McNamara said, but then the company eventually landed five deals within a five-month period, which showed promise. The company now has containers deployed at 15 or 16 campuses, in addition to roughly three corporate campuses. Freight Farms’ base of small farm customers, which is now around 75, remains a focus, but McNamara said the traction with college campuses has more growth potential.

“The real opportunity that is growing fast is this space in the institutional area,” he said. “As a team, we have to make a choice for what’s best for the company.”

McNamara said the research and development efforts that weren’t moving the needle were some product and software projects. One of the products the company has adjusted expectations for is its smaller “LGM” container that was revealed last year and aimed at attracting restaurant customers. The CEO said the company has deployed a few units with early customers to get more feedback, with a commercial launch planned next year.