(Vinterbro, Norway, January 22, 2024)
“Rift Labs is excited to announce a $4.5 million partnership deal with Norselab to reinforce our commitment to indoor agriculture. We are witnessing substantial interest in our technology globally, having already secured commercial contracts for supplying LED lights for plant production of scale in both vertical farms and industrial greenhouses. The partnership with Norselab is very exciting and will allow us to take our Photosynthetic offering to the next level.” says Halvard Aagaard, visionary CEO of Rift Labs.
The funding round was led by impact investor Norselab, a Norwegian VC fund backed by US-based Capricorn Investment Group, one of the world’s largest purpose-driven investment companies. The investment totals around $4.5 million, with $1.5 million in cash and another $3.0 million through the acquisition of secondary shares. The round had additional participation from existing shareholder Karbon Invest through the conversion of a shareholder loan.
Why did Norselab invest in Rift Labs?
“We need a radical shift in how we produce food, and we are convinced that Rift Labs can take a leading position in controlled-environment agriculture in the years ahead,” states Yngve Tvedt, CIO of Norselab.
Patented software control enabling dynamic LED solutions with world-leading energy efficiency
Rift Labs was founded more than a decade ago, initially focusing on the cinema lighting industry – i.e. targeting professional cinematographers and directors of photography, where the requirements for high precision and light quality are extreme. Over the years, we developed and perfected what is now a patented technology for the dynamic control of LED lights. For indoor agriculture, this technology means we can continuously adapt dynamic light conditions for optimized plant growth, while at the same time achieving world-leading energy efficiency.
Halvard Aagaard, CEO of Rift Labs, adds, “The LED light market today is heavily influenced by a few major companies which deliver standardized solutions that mostly rely on a static or fixed light spectrum. We make use of our proprietary and complex software for mixing light, which enables extremely precise and consistent dynamic lighting – in high quality across all temperatures and colors. The significance of this is huge: By manipulating the light conditions in their vertical farm or greenhouse, the grower can induce their plants to exercise certain behavior whenever they want, regardless of the conditions outside. For our customers, this translates to better yields, much higher flexibility, and more efficient LED operation, with up to 10-25% reduced energy costs compared to our main competitors.”
Strategic financing partnership with Export Finance Norway (Eksfin)
Rift Labs has also entered a partnership with EksFin, a Norwegian governmental institution offering attractive financing and guarantee coverage. Regardless of market conditions, Eksfin, with its AAA rating, provides financial solutions and risk-sharing guarantees, empowering international buyers with long-term financing at market-leading terms for Rift Labs’ LED lighting solutions. This collaboration enhances lending capacity and risk mitigation for collaborating banks on a global scale.
Seizing opportunities in a growing LED Market
The horticultural lighting market is expected to grow significantly from $3.7 billion in 2023 to $10.4 billion in 2028, with a CAGR of over 22.4%1. This growth is attributed to an increased demand for more innovative and energy efficient lighting solutions, driven by indoor agriculture being seen as a sustainable and more reliable alternative in food production. With their patented LED technology, Rift Labs is well positioned to become a leader in the industry.
For more information:
Øyvind Hasund Dahl, CRO
About Rift Labs | www.riftlabs.com
Rift Labs is a Norwegian LED technology company that has been developing award-winning LED products and solutions for the global market since 2010. Combining unique and patented software with industry-leading energy efficient hardware, Rift Labs creates exceptional LED technology solutions for two industries: photo and video through cinema lighting brand Kelvin, and indoor agriculture through CEA brand Photosynthetic.
Rift Labs’ headquarters is located in Vinterbro, Norway, with commercial offices in Berlin. To learn more about Rift Labs, visit: www.riftlabs.com
About Norselab | www.norselab.com
Norselab is a Nordic impact investor with an unwavering focus on creating a meaningful future for all through investments. Norselab invests in companies that positively contribute to sustainability goals and drive change in some of the world’s most resource-intensive industries. Managing four funds in venture and credit, all following industry-leading impact standards and designed for long-term capital returns, Norselab is backed by US-based Capricorn Investment Group, one of the world’s largest purpose-driven investment companies.
Norselab is a certified B Corp™ with headquarters in Oslo, Norway. To learn more about Norselab, visit www.norselab.com