Tag: 600M

French startup Ÿnsect gained attention when actor Robert Downey Jr. praised it on the “Late Show” during Super Bowl weekend 2021. However, after nearly four years, the insect farming company has filed for judicial liquidation due to insolvency. The downfall of Ÿnsect was not unexpected, as the company had been facing challenges for some time. Despite raising over $600 million from investors like Downey Jr.'s FootPrint Coalition, taxpayers, and others, the company was unable to sustain itself. Ÿnsect's initial goal was to revolutionize the food chain with insect-based protein. However, the company struggled to find its footing in the market, particularly in the animal feed and pet food sectors, which had different economic dynamics. The company's indecision was evident in its M&A strategy, as it acquired Protifarm in 2021 to enter the human food market, which was expected to contribute minimally to its revenue. This lack of focus and revenue growth ultimately led to Ÿnsect's financial troubles. Despite attracting significant funding based on its sustainability vision, Ÿnsect failed to translate this into sustainable revenue streams. The company's emphasis on sustainability clashed with the price-driven nature of the animal feed market, leading to financial losses. Techcrunch event San Francisco | October 13-15, 2026 Realizing the challenges in the animal feed market, Ÿnsect shifted its focus to pet food and other higher-margin segments in 2023. However, this strategic pivot came too late, as the company had already committed significant resources to projects like the Ÿnfarm facility, which drained funding without proving its viability. The failure of Ÿnsect highlights the challenges faced by European startups in scaling up and industrializing their operations. While the company's demise does not spell doom for the insect farming sector, it serves as a cautionary tale about the importance of strategic focus and sustainable growth. The lessons learned from Ÿnsect's downfall have prompted a reevaluation of European startup support policies, emphasizing the need for more than just funding to nurture the next generation of deep tech companies.

Tag: 600M

How reality crushed Ÿnsect, the French startup that had raised over $600M for insect farming

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