Ÿnsect, the French insect farming startup, once promised to revolutionize the way the world produces protein. Backed by over six hundred million dollars in funding from high profile investors, the company aimed to transform insects into sustainable animal feed and pet food. For a time it was celebrated as a symbol of innovation and sustainability.
Despite the enormous funding, the company struggled to generate meaningful revenue. By 2023, its income was reported to be less than six million euros, a fraction of the money it had raised. The business faced a difficult choice between multiple markets. The low margin animal feed sector could not compete with traditional sources, and the pet food market, while more lucrative, was entered too late to reverse financial losses. Efforts to diversify into human food added costs without delivering significant returns.
Ÿnsect invested heavily in building the Ynfarm giga factory, billed as the largest industrial insect farm in the world. The facility was constructed before the business model had been proven and failed to deliver the low production costs needed to be competitive. The high capital burn and complex operational challenges left the company vulnerable when investor enthusiasm waned.
When venture funding became harder to secure, Ÿnsect could not raise the financing required to continue operations. By the end of 2025, the company was placed under judicial liquidation. Its large industrial facility will close, although some smaller operations may continue under different entities.
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