285. What Actually Gets a CEA Company Funded or Sold in 2026 w/ Andrew Howell
In this episode of CropTalk, we sit down with Andrew Howell, Partner at Ascendant Partners. Andrew last joined us 101 episodes ago at episode 174 in November 2021, and he returns to test what actually holds up about getting a CEA company funded or sold heading into 2026 and 2027. We walk through the three legs of the stool he uses to judge any operation: reliable growing technology and a cost effective build, yield that pencils, and a buyer at the end. We cover why "if you build it, they will come" broke down against retailers like Kroger and Whole Foods that were never going to carry 50 suppliers of the same 5 ounce clamshell. We get into offtake as the precondition Ascendant now requires before taking on a mandate, the shift from world domination plans to businesses targeting a 10 to 15 percent EBITDA margin, and why food and agriculture is roughly 8 percent of US GDP but attracts less than 1 percent of investment dollars. We also cover the shrinking pool of investors who have not already been burned in the space, the two plus year cycle to bring new acreage online, Taylor Farms acquiring the Equinox facility in Virginia, whether a head grower belongs in the boardroom, the 2017 white paper Andrew wrote arguing greenhouses would win out over vertical farms, and his call for small and mid-sized acquisitions to roll into larger networks through 2027. The unvarnished truth he gives clients, even when they do not want to hear it, runs through the entire conversation.
