The French company Ÿnsect entered judicial liquidation, thus closing one of the most controversial projects that was presented as a key element of the transformation of the European food system, in accordance with the progressive policies of the European Union.
The company has previously raised more than $600 million in combined funding from public institutions and private investors. Backers included institutional funds, private investors and even the FootPrint Coalition led by actor Robert Downey Jr., while the project was promoted on American television during the 2021 Super Bowl. From public funds alone, Ÿnsect received almost 200 million dollars.
Ÿnsect was founded with the aim of producing protein from insects as a “sustainable alternative” to traditional ingredients such as soy or fishmeal. The startup rapidly expanded its operations, following the narrative of European climate policies, but the growth did not result in a profitable business model. The animal feed market, which is highly competitive and focused on prices, did not justify the company’s high industrial costs.
The problems further escalated in 2021 when Ÿnsect took over the Dutch company Protifarm, which specializes in insects for human consumption. The then CEO Antoine Hubert admitted that this segment would account for only 10–15% of revenue in the medium term. The best year for the company was 2021, when the main subsidiary invoiced only 17.8 million euros, which according to public data was increased by internal transactions between subsidiaries. By 2023, accumulated losses exceeded €79 million, with no real revenue to support the growth narrative.
The decisive blow came with the construction of the huge industrial plant Ÿnfarm in northern France, which was presented as the largest and most expensive insect farm in the world. The project required hundreds of millions of euros before the economic viability of the model was proven, resulting in a high-risk investment carried out too early.
To manage the industrial expansion, the company hired Shankar Krishnamoorthy, a former Engie executive who later replaced Hubert as CEO after a failed transformation into pet food. Restructuring, plant closures, layoffs, and the sale of non-strategic assets were not enough to sustain the oversized structure.
Eventually, Ÿnsect went into liquidation. The last CEO, Emmanuel Pinto, announced that the remaining assets would be for sale, with the expectation that the acquired technical know-how could be used in other European projects.
(Vijesti.ba)
