"Now, nearly four years later, the insect farming company has been placed into judicial liquidation - essentially bankruptcy - for insolvency. Ultimately, Ÿnsect failed to fulfill its ambition to "revolutionize the food chain" with insect-based protein. But don't be too quick to attribute its failure to the 'ick' factor that many Westerners feel about bugs. Human food was never its core focus."
"Instead, Ÿnsect focused on producing insect protein for animal feed and pet food, two markets with very different economics and margins that the company never quite chose between. That indecision extended to its M&A strategy. In 2021, Ÿnsect acquired Protifarm, a Dutch company raising mealworms for human food applications, adding a third market to the mix. Even as the company announced the deal, then-CEO Antoine Hubert admitted it would take a couple of years for human food to represent just 10% to 15% of Ÿnsect's revenue."
Ÿnsect entered judicial liquidation after failing to reach sustainable revenue despite raising over $600 million from investors including celebrity-backed funds and public money. The company concentrated on producing insect protein for animal feed and pet food while acquiring Protifarm to enter human food, creating an unclear market focus. Leadership projected human food would remain a small share for years, leaving pet and fish feed as primary revenue drivers. Reported revenue peaked around €17.8 million in 2021, with internal transfers inflating figures, and the firm reported a net loss of €79.7 million by 2023, leading to insolvency.
Read at TechCrunch
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