Key Takeaways:
- Ynsect has entered court-supervised protection due to financial challenges amid a difficult economic climate.
- The company specializes in insect farming for animal and human nutrition, as well as fertilizers.
- Despite raising $600 million since 2011, Ynsect faces difficulties scaling its vertical farm in the Somme, which is intended to be the largest in the world.
- French media, including Les Echos, BFM TV, and Maddyness, have reported extensively on Ynsect’s situation.
- Ynsect is in advanced discussions with potential investors to secure additional capital and continue its operations.
Ynsect Enters Court-Supervised Protection Amid Financial Challenges
Ynsect, a French startup specializing in insect farming for animal and human food as well as fertilizers, has entered court-supervised protection. This decision, approved by the Tribunal de Commerce of Evry on September 25, 2024, comes in response to financial difficulties as the company faces delays in securing new funding, amidst a challenging economic and financial environment.
Financial Pressures and Funding Delays
Since its founding in 2011, Ynsect has raised $600 million from investors. The company embarked on an ambitious project to build the world’s largest vertical insect farm in the Somme region. However, the project has encountered difficulties in reaching full operational capacity. After securing €160 million in 2023-24, Ynsect now requires additional capital to continue scaling its operations.
Ynsect explained that delays in its latest funding round were “incompatible with the financial pressure faced by the company.” As a result, the court-supervised protection procedure provides a six-month reprieve by freezing the company’s debts, allowing time to resolve its financial situation. This protection can be extended for another six months or longer if necessary.
Media Coverage and Ongoing Investor Discussions
Several French news outlets, including Les Echos, BFM TV, and Maddyness, have reported on Ynsect’s current financial challenges. Despite these difficulties, the company remains optimistic, stating it is in “advanced discussions with several investors willing to support and finance this phase of the launch of its industrial process.”
The court-supervised protection is expected to give Ynsect the necessary time to secure fresh capital, helping the company achieve production levels that will drive profitability and enable it to continue developing its innovative insect farming solutions.
Ÿnsect Recent News
Mealworm-Based Pet Food Approved in US (2024/01/25)
Ÿnsect, a leading producer of insect-based proteins, has been authorized by the Association of American Feed Control Officials (AAFCO) to incorporate defatted mealworm proteins into dog nutrition. This marks the first time mealworm-derived ingredients have been approved for pet foods in the US. The approval follows a two-year evaluation process, including a 6-month trial demonstrating the safety and nutritional benefits of mealworm ingredients. The protein quality of defatted mealworm flour from Tenebrio molitor is on par with traditional animal proteins. Ÿnsect’s mealworm-based pet food is environmentally friendly and sustainable.
Ÿnsect Inks MoU With Leading Korean R&D Center (2023/04/28)
On April 26th, during the “France-Korea” event, Ÿnsect, a global leader in insect production, signed a Memorandum of Understanding (MOU) with Korea’s LOTTE R&D center to expand into high-value segments with sustainable ingredients and better understand Asian markets. This partnership, signed in the presence of Korean Vice-Minister Cho Juhyeon, will focus on researching insect-based food products, exploring the health benefits of edible insects, and assessing consumer attitudes towards insects in food in both Europe and South Korea. This collaboration marks a significant step in Ÿnsect’s growth in human food and its expansion in Asia, reinforcing Franco-Korean cooperation in the tech sector. Additionally, Ÿnsect recently raised around $177 million to advance its development and scale operations in high-value markets.
Ynsect Raises $177M & Announce Cost-Cutting Measures (2023/04/17)
French insect farming startup Ynsect has raised $177 million to expand its facility and focus on high-return markets such as pet food, human nutrition, and fertilizers. The company plans to restructure its business, closing a production plant in the Netherlands and cutting jobs in France and the Netherlands. Insect farming is a rapidly growing industry, offering a sustainable and environmentally friendly alternative to traditional animal farming. Despite challenges, the insect farming market is poised for continued growth and is a promising area for investment and innovation.
Ÿnsect Plans Insect Farm Projects in The United States (2022/12/13)
Ÿnsect plans to expand insect production sites in the US to create sustainable alternatives to animal protein. The company has a circular economy model for its new vertical farms to comply with the Paris COP21 agreements. Ÿnsect transforms mealworms into sustainable ingredients to feed animals, plants, and humans. They’ve filed a market approval for their flagship protein concentrate for the pet food market to the AAFCO. Ÿnsect is exploring potential collaborations with Ardent Mills, a North American leader in flour milling, to change the global food system sustainably.
Featured Among 30 Finalists For Zayed Sustainability Prize 2023 (2022/11/09)
The Zayed Sustainability Prize has finalized 30 finalists for 10 awards, with winners to be announced in January 2023 during the Abu Dhabi Sustainability Week. This year, the Prize received a record 4,538 applications from 152 countries. The Jury, comprising former heads of state, UAE government ministers, and international business figures, met in Abu Dhabi in October to review the shortlisted submissions identified by the Prize’s Selection Committee. The finalists proposed sustainable solutions that leverage next-generation technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) to drive impact.
Discover the rest here.
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