Insolvency has led to the judicial liquidation of French startup Ÿnsect, a company that once garnered attention from actor Robert Downey Jr. during the Super Bowl weekend in 2021. Despite raising over $600 million from various investors, including Downey Jr.'s FootPrint Coalition, the insect farming company struggled to achieve its goal of transforming the food chain with insect-based proteins.
Ÿnsect primarily focused on producing insect protein for animal feed and pet food, rather than human consumption, which complicated its business model. The company's revenue peaked at €17.8 million (about $21 million) in 2021, although this figure was reportedly inflated due to internal transactions. By 2023, it faced significant financial losses, totaling €79.7 million ($94 million).
The startup's challenges were exacerbated by its acquisition of Protifarm in 2021, aimed at expanding into human food, a market that was expected to contribute only a small fraction of revenues for several years. Former CEO Antoine Hubert acknowledged the need for pet food and fish feed to remain the primary revenue sources during that time.