French mealworm protein pioneer Ynsect has declared bankruptcy after years of financial struggle. The company, once hailed for its sustainability promise, fell short of funding needs. Ynsect now calls for the acquisition of assets to continue its mission.
Early promise and funding
Ynsect had a promising start, raising a total of $600 million of funds from, among others, the French investment bank BPIFrance, as well as receiving local incentives for the construction of a large insect processing plant in France. “Founded by scientists and environmental activists in 2011, Ynsect is pioneering a new industry realising the full potential of mealworms – putting them at the service of humanity, the planet, and the living world at large,” its mission statement read.
Ambitious goals unmet
The company’s founders promised a bright future with the creation of at least 4,000 new jobs in 10 years’ time, but never got any further than some 250 employees.
Rising competition and challenges
Due to severe competition in the protein production sector and the difficulties in raising funds for agricultural start-ups in general, Ynsect increasingly got into financial troubles. In February this year, the firm was declared insolvent, obtaining a temporary court protection order to work out a continuity plan.
Final attempts to survive
Nevertheless, last June Ynsect had to lay off 137 of its remaining 200 employees at its only production plant near Amiens in Northern France, which opened only two years earlier. In September, the juridical protection period was extended for another 3 months but that has not been enough to find the necessary funding.
Assets up for acquisition
Ynsect now calls for the acquisition of assets to continue its mission. It also announced, ‘the development of a new and more robust production method and a capacity to introduce unique products with environmental benefits and acknowledged functionalities.’ President Emmanuel Pinto: “Ynsect now has solid technologies and an operational model, even though the required funding could not be secured in time. We hope that the significant technical and industrial skills developed by the teams at Ÿnsect, along with the established business relationships, will find productive use and contribute significantly to both Europe’s protein independence and the fight against climate change.”
