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“AppHarvest, the indoor farming startup backed by JD Vance, faced significant challenges and ultimately failed as a business venture. Here's an overview of the situation:
## Business Performance
AppHarvest struggled financially, accumulating a deficit of $270 million by November 2022[5]. The company's first harvest in 2021 yielded disappointing results, with net sales of only $3.1 million in the second quarter[5]. Despite raising nearly $475 million when going public in February 2021, AppHarvest continued to operate at a loss[5].
## Legal Issues
The company faced five lawsuits from November 2021 to August 2022, alleging that it misled regulators and defrauded investors[4]. These lawsuits claimed that AppHarvest inflated its hiring and retention numbers, leading to a significant drop in stock value[4].
## Working Conditions
Former workers reported harsh conditions in AppHarvest's greenhouses, including extreme temperatures and inadequate safety measures[1]. Complaints filed with the U.S. Department of Labor and state regulators between 2020 and 2023 alleged that employees were denied sufficient water breaks and proper safety equipment[1].
## JD Vance's Involvement
Vance served as an initial investor, board member, and public advocate for AppHarvest over four years[1]. He directed millions of dollars into the company through his venture capital firm, Narya Capital[1]. However, Vance left the board in 2021 before the company's financial troubles became public[1].
## Outcome
AppHarvest filed for Chapter 11 bankruptcy in July 2023, leading to the cancellation of its common stock and the sale of major assets[2]. The company's failure contradicted Vance's portrayal as a defender of the working class and raised questions about his investment decisions[1].
