Ÿnsect Faces Judicial Liquidation Amid Industry Struggles

A commercial court has pronounced the judicial liquidation of French insect agriculture pioneer Ÿnsect following a hearing held earlier this week. Once celebrated as a leader in protein production through insect farming, the company has expressed a need for asset acquisition to continue its mission, according to an official statement.

Company Overview

Ÿnsect gained prominence with its industrial-scale mealworm farming operations aimed at producing protein for animal feed, pet food, and fertilizer. However, the company’s journey over the past few years has been fraught with challenges, leading to its current predicament.

Timeline of Key Events

• In 2023, Ÿnsect initiated layoffs as part of a strategy to pivot from animal feed to the lucrative pet food sector.
• Despite successfully raising over $500 million, the company faced difficulties in securing further funding necessary for achieving profitability and sought court protection in 2024 after declaring insolvency.
• In April 2025, former CEO and cofounder Antoine Hubert acquired the company’s pilot facility near Dole, France, through his new venture, Keprea.
• By September 2025, the court had placed Ÿnsect under an observation period, allowing it to operate while exploring restructuring options.

Challenges and Future Prospects

Ÿnsect stated in its announcement that it “has been unable to secure the necessary financing for its continuation plan within the required timeframe,” pointing to prevalent difficulties faced by startups in climate-related and agricultural sectors when raising funds.

The company will shutter its industrial-scale facility near Dole, while the Keprea facility will continue operations, focusing on producing fertilizers from insect waste. Emmanuel Pinto, president of Ÿnsect, remarked that the company possesses robust technologies and an operational model, although the necessary funding was not acquired in time.

“We hope that the significant technical and industrial skills developed by our teams, along with established business relationships, will contribute to Europe’s protein independence and assist in the fight against climate change,” Pinto stated.

Industry Overview

Ÿnsect’s struggles reflect broader challenges within the insect protein startup sector. Dr. Dustin Crummett, founder and executive director of the Insect Institute, highlighted structural issues impacting the entire industry. “This case and the numerous other examples of struggling insect businesses reveal systemic problems affecting competitiveness,” he noted.

“Whether for human consumption, where insect acceptability remains low, or for animal feed, where insects are significantly more expensive compared to traditional protein sources like soy and fish meal, the sector faces tough hurdles to overcome.”