French insect protein scaleup Ÿnsect, once hailed as a future foodtech giant. Has secured €10 million in bridge financing from its existing investors following its entry into insolvency proceedings earlier this year. The funding is expected to keep the company operational for the next few months as it searches for new buyers or investors.
The company also announced a major leadership shakeup. CEO Shankar Krishnamoorthy has stepped down and has been replaced by Emmanuel Pinto. A restructuring specialist and partner at French turnaround firm D&I. Pinto is tasked with guiding Ÿnsect through this critical restructuring phase.
Ÿnsect, which farms insects to produce sustainable protein for animal and human food. Has been facing mounting financial pressure in recent years. Despite raising over $600 million since its launch in 2011, the company struggled to secure the additional €130 million it needed to scale operations at its flagship production site Ÿnfarm. A 45,000-square-metre facility launched in 2020.
After entering safeguarding proceedings (procédure de sauvegarde) earlier this year. A pre-insolvency process in France that allows companies in distress to restructure without being declared bankrupt. The company failed to lock in the necessary capital and filed for full insolvency proceedings in February.
With only a month of cash left at the time. Ÿnsect issued a call for bids to sell off its assets. So far, the only formal offer has come for its 3,500-square-metre pilot plant in Dole, located in eastern France. That offer is currently under review by the French commercial court overseeing the case. Ÿnsect has not revealed the identity of the interested buyer.
In the absence of other offers, the company’s historical investors stepped in with a €10 million lifeline. While Ÿnsect declined to name the investors involved, previous reports identified Bpifrance. France’s public investment bank — as its largest backer, with at least $30 million invested. Other key investors include Astanor Ventures, a Belgium-based VC known for its focus on food and agri-tech.
According to the company, this fresh funding will provide “several months” of financial runway while it continues to operate Ÿnfarm — albeit not at full capacity. Ÿnsect also confirmed that it remains in discussions with potential buyers and investors, and will reassess its path forward based on the outcome of its next court hearing scheduled for late May.
Despite being a pioneer in sustainable protein alternatives, Ÿnsect’s story has become a cautionary tale of capital-intensive scaling challenges in deep tech and agritech sectors. Whether the company will find a buyer or rebound with fresh investment remains to be seen.
