Ynsect, one of the French startups that ventured into producing insect-based proteins and fertilizers, has announced via a press release that it has entered a safeguard procedure. This decision, approved by the Commercial Court of Évry, aims to freeze the company’s debts for six months, allowing Ynsect to focus on stabilizing its financial situation and continuing its industrial projects.
An ambitious industrial model facing rapid growth and lagging commercial results
Founded in 2011 by Antoine Hubert, Jean-Gabriel Levon, Fabrice Berro, and Alexis Angot, Ynsect has specialized in breeding and processing mealworms for animal and human consumption, as well as fertilizer production. Since its inception, the company has raised a total of €560 million and invested heavily in developing its industrial infrastructure.
In October 2020, Ynsect closed a spectacular €350 million Series C funding round, supported by Astanor Ventures, Upfront Ventures, FootPrint Coalition (actor Robert Downey Jr.’s fund), Happiness Capital, Supernova Invest, and Armat Group. This funding was supplemented by contributions from Caisse des Dépôts, Crédit Agricole Brie Picardie, and Caisse d’Epargne Hauts-de-France. In 2019, the startup had already raised €113 million and €21 million in grants.
In April 2023, during the Series D round, Ynsect decided to strengthen its executive team to manage the expansion of its activities, particularly by reorganizing its Executive Committee. Shankar Krishnamoorthy, a former member of Engie’s executive committee, was appointed as Ynsect’s CEO, while co-founder Antoine Hubert focused on innovation and investor relations, continuing as the company’s representative as Executive Vice President and Chief Ynnovation Officer (CŸO).
The experimental farm in Damparis (Jura)
In 2016, Ynsect established its first experimental farm in Damparis, near Dole, in the Jura region. This site, employing around forty people, is dedicated to insect breeding and serves as a laboratory for testing and refining the industrial processes to be deployed on a larger scale. This farm plays a key role in the development of Ynsect’s technologies, laying the groundwork for more ambitious projects.
The vertical farm in Amiens (Somme)
Ynsect’s flagship project is the construction of a vertical farm in Amiens, in the Somme region, designed to become “the largest vertical farm in the world” dedicated to the production of insect-based proteins. This site aims to meet the growing global demand by producing proteins and fertilizers on a large scale.
However, the scaling-up of this infrastructure has been more complex than anticipated. The industrialization process, particularly concerning insect reproduction, has proven to be more time-consuming. Although the €160 million fundraising achieved in 2023-2024 was significant, it was not enough to cover all the financial needs of the Amiens project.
Nevertheless, in January 2024, the Amiens farm reached a key milestone by obtaining an essential authorization for the commercialization of mealworm proteins intended for dog food in the United States.
A safeguard procedure to secure new funding
Faced with this situation, Ynsect sought to initiate a safeguard procedure to freeze its debts and temporarily protect itself from creditors. This six-month period, which can be extended, will allow the company to finalize discussions with new investors and stabilize its finances.
Ynsect is currently in advanced talks with several investors.
