French insect farming startup Ynsect urgently seeks buyers or investors to avert closure

Ynsect, a company specializing in the cultivation and transformation of insects for animal feed, human consumption, and fertilizers, triggered a safeguard procedure with the Évry Commercial Court on September 25, 2024, due to severe financial difficulties. This procedure remains active, and it is expected to continue at least until March 2025. An official tender was announced on January 17, aiming to secure new ownership or additional investment to sustain operations.

Established in 2011, Ynsect currently employs 214 people across its locations in France. This includes a significant facility in Damparis near Dole and a major vertical farm in Amiens, Somme, spanning 48,000 square meters. The company also maintains a research and development site in Évry, near Paris, and has a broader global presence, including offices in the Netherlands and Nebraska, as of two years ago, according to Les Echos.

The industry’s focus shifts to sustainability as global resources dwindle, and Ynsect has been at the forefront of developing alternative protein sources. However, despite raising a total of $600 million since its inception, the company has struggled with scaling operations, particularly with what was intended to be “the world’s largest vertical farm” in the Somme. Following its latest funding round, which raised 160 million euros in 2023-24, Ynsect expressed an ongoing need for fresh capital.

The search for financial stability continues as the capital markets have shifted focus, notably towards artificial intelligence, leaving industrial startups like Ynsect facing significant funding challenges. The company contends that building an industrial tool requires substantial investment, which may suggest that its ambitions have outpaced its financial capabilities.

In Damparis, where Ynsect’s factory was set up in 2016 in the Innovia zone, the facility continues to produce insect-based feed for animal nutrition. Local officials, including the community mayor, have limited information on the site’s future. The primary concern remains the preservation of jobs.

Potential buyers or investors interested in Ynsect have until February 17, 2025, to submit their offers to the appointed judicial administrator. This safeguard procedure is separate from the tender offer and may be extended if necessary.