Ÿnsect has filed for bankruptcy protection in a bid to buy more time to either restructure its finances or find a buyer.
The insolvency of the French insect protein pioneer is a blow to private investors who will likely see all of their holdings wiped out. But it also raises difficult questions about the public strategy in France to back Deep Tech startups in the hope that their breakthrough technologies will require large-scale production that will help re-industrialize a nation that continues to see traditional manufacturers shuttering or pulling up their stakes and moving elsewhere.
With more than $625 million in equity and debt raised since 2011, Ÿnsect had long been hailed as a model for how public-private partnerships could create a new breed of industrial champions. Even better: its mission to create an alternative protein source checked many of the boxes of the French tech identity, including food sovereignty, climate tech, and health tech.
As of yet, Ÿnsects bankruptcy filing is not yet public. But drawing from previous public records and announcements, one can piece together the stakes for the VCs and the public entities that had put so much faith in the company's mission.
Chief Benefactor Bpifrance
As is often the case in France, state innovation bank Bpifrance was there to give the science-based startup a boost when it was just a hatchling.
It's impossible to know for sure how much Bpifrance has invested in Ÿnsect. Sifted claimed the amount was about €30 million, according to sources. But the actual figure is likely higher.
That's because over the years, Bpifrance has supported Ÿnsect through direct investment, guaranties to other banks that loaned the company money, investments via its Fund of Funds in venture capital firms that then backed the company, and finally a range of programs such as grants and marketing support that its labels "accompaniment."
