How reality crushed Ÿnsect, the French startup that had raised over $600M for insect farming

French startup Ÿnsect, once a high-profile insect farming company that raised over $600 million—including investments from celebrities and public funds—has effectively gone bankrupt due to insolvency nearly four years after its Super Bowl weekend debut. Despite its ambitious goal to produce insect-based protein, Ÿnsect struggled primarily because it failed to clearly define its target market. Initially focused on insect protein for animal feed and pet food, the company’s indecision extended to its acquisition strategy, notably buying Protifarm in 2021 to enter the human food market, which remained marginal and did not generate the needed revenue growth. By 2023, Ÿnsect had accumulated significant losses (€79.7 million) and generated minimal revenue. The company’s funding success stemmed from impact-focused investors attracted by its sustainability pitch as an alternative to resource-intensive proteins like fishmeal and soy. However, the reality of the animal feed market—dominated by price sensitivity rather than sustainability—clashed with Ÿ