economy
December 27, 2025
How reality crushed Ÿnsect, the French startup that had raised over $600M for insect farming
French insect farming company Ÿnsect was recently placed into judicial liquidation for insolvency, despite raising over $600 million.
TL;DR
- Ÿnsect, a French insect farming company, has filed for bankruptcy (judicial liquidation).
- The company raised over $600 million from investors, including Robert Downey Jr.'s FootPrint Coalition.
- Ÿnsect struggled to define its core market, attempting to succeed in animal feed, pet food, and human food.
- The animal feed market proved to be a commodity driven by price, not sustainability premiums.
- Ÿnsect's revenue peaked at €17.8 million in 2021, with a net loss of €79.7 million by 2023.
- A major factor in its failure was the "giga-factory" project, Ÿnfarm, which consumed significant capital before the business model was proven.
- The company later attempted to pivot to higher-margin pet food markets, but it was too late.
- Experts suggest Ÿnsect's failure is a case study in Europe's "scaling gap," highlighting issues with industrial ambition, capital markets, and timing.
- Competitors like Innovafeed are reportedly doing better by starting smaller and scaling incrementally.
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