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One of the most conspicuous impacts of the novel coronavirus pandemic was the disruption to our food supply chain. Suddenly, consumers desperate for sustenance found themselves staring at ever-dwindling supplies and rising costs.Obviously, this has been a terrible burden for households already struggling with the double whammy of economic and health crises. Fortunately, Americans are resourceful, as Trella Technologies proves. Thanks to its profound innovation for indoor farming solutions, Trella Technologies stock is now one of the most compelling equity crowdfunding opportunities.
Under a typical indoor farming facility paradigm, growers are limited to short plants and vegetation. Although buildings provide protection from the elements, certain natural disasters and facilitate year-round growth, a physical structure also imposes vertical limitations. To maximize yield, farmers must stack as many plants in their facilities as possible. Right there, this dynamic eliminates the capacity to grow taller plants.
Just as critically, indoor facilities consume significant energy. While the agricultural industry generally aligns with environmental, social and governance (ESG) ethos, the indoor variety just isn’t economical due to the costs relative to traditional outdoor farming. Until technology can close that gap, this indoor innovation was destined to hit a ceiling. However, Trella aims to uproot this paradigm, bolstering the narrative for Trella Technologies stock.
At its core, the Massachusetts company specializes in a unique, patent-pending mechanism that “trains” plants to grow horizontally. In this manner, farmers have the option of growing tall plants as well as maximizing crop yield. Because Trella’s platform does much of the legwork, management claims that farmers can save 50% in time spent on pruning and trimming.
Source: Trella Technologies
Now you can see why this private investing offer has attracted so many.
Trella Technologies Stock to Benefit from ‘Edge’ Farming
As you know, humans have a tendency of living at or near major urban centers. It’s not rocket science — these locations house the most jobs. Even with the disruption of Covid-19, metropolitan areas provide opportunities for networking, a concept that will likely return to normal once we return to normal.
But one disadvantage to urban centers is their distance away from lands of sustenance. Clearly, there’s a convenience element involved here. Very few people want to wake up to the smell of manure in the morning. But that raw earthiness is what keeps us alive, not the latest trinket from your favorite smart device manufacturer.
Thus, the beauty of Trella Technologies stock is that it brings this agricultural necessity closer to the source of demand. Essentially, Trella has revolutionized the concept of “edge” farming.
For instance, edge computing involves bringing the cloud closer to the user, thereby improving connectivity and reliability. Plus, edge computing drives down costs, as it lessens the bandwidth “pressure” on the relatively few data centers scattered throughout the world. Now, think of this example but with farming and you get the core narrative behind Trella Technologies stock.
While the underlying company has obvious implications for the grocery industry — for instance, Kroger (NYSE:KR) and Albertsons Companies (NYSE:ACI) can specialize in “hyperlocal” vegetables — Trella can accelerate growth in the cannabis industry.
During this pandemic, many jurisdictions labeled cannabis dispensaries as essential services. That’s because the once-heavily stigmatized plant offers myriad potential therapeutic solutions. Logically, strong demand exists for such solutions, particularly stress relief.
With Trella’s innovative platform, legal cannabis growers can nurture various strains and grow year-round without the worries associated with outdoor growing. Additionally, Trella’s Auto Sync LED provides lighting only when the plants need it, saving up to 25% on energy costs.
Beware Challenges of Economics
While Trella Technologies stock is undoubtedly an equity crowdfunding opportunity packed with potential, you’ll still want to be careful. As I explained with many other private investing offers, you should know that most startups fail. That’s just a cold, hard fact.
Specifically for the business, I’m a little bit skeptical about the cost-savings element. Believe me, the science behind Trella Technologies stock is completely legitimate. Though you may argue that this is the most-difficult hurdle that the company overcame, it’s really only half the picture.
Even with modern innovations in indoor farming (such as hydroponics), the cost per pound of product is three to five times higher than that of conventional outdoor farming. Furthermore, the area that Trella seeks to make an impact, container farming, has the highest expense rate relative to outdoor farming. Possibly, we’re talking in the neighborhood of nearly 1,000% higher overhead costs.
To be fair, what makes Trella a viable equity crowdfunding play despite its higher expense ratio is the aforementioned edge farming. By facilitating hyperlocal facilities, Trella could substantially cut big portions of the food logistics chain. However, in my view, the cost savings must come down more than the advertised 25% for this to be viable.
Second, while the novel coronavirus showcased the importance of this private investing offer, it also poses a possible headwind. Let’s say that people moving out to the suburbs or rural areas to avoid the pandemic wasn’t permanent. After all, with many organizations successfully implementing remote work, there are fewer incentives for people to put up with escalating living costs in major metropolitan areas. Logically, this would negate some of Trella’s logistics advantages for urban centers.
Finally, Trella may pose some ethical concerns as a successful integration of its platform may lead to conventional farmers losing their livelihood. Given the surge in social awareness, this is at least something to think about before pulling the trigger on Trella Technologies stock.
Innovation Meets Agriculture
Overall, I believe Trella is a compelling opportunity that could revolutionize agriculture and our food supply chain. Combined with rising demand for plant-based meats, the company is capturing attention at the right time.
To learn more about Trella Technologies, you can check out its StartEngine equity crowdfunding profile here.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
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