Ÿnsect Explores Takeover Options Amid Financial Struggles
Deal News | Jan 29, 2025 | Ag News
Ÿnsect, a leading entity in the insect agriculture sector, is exploring all options, including a possible third-party takeover, as it faces significant financial difficulties. Having raised $580 million since its inception in 2011, Ÿnsect requires an additional $135 million to reach its 2028 revenue goals of $137 million. This funding need has prompted the issuance of a tender offer to gauge interest from investors and potential acquirers, with a deadline set for February 2025. Fellow French startup Agronutris has filed for a safeguard with the French commercial court, providing it with time to restructure and secure new investments. Both companies are indicative of broader challenges within the insect ag sector, such as securing funding and transitioning from experimental to industrial scale operations.
Sectors
- Agriculture
- Sustainable Food Production
- Private Equity and Venture Capital
Geography
- France – The primary focus of the article is on French companies Ÿnsect and Agronutris, and their business operations and legal proceedings are based in France.
- Canada – The article mentions Canadian cricket farming company Aspire Food Group, providing context to the insect agriculture sector’s challenges.
Industry
- Agriculture – The article revolves around companies engaged in insect farming for protein production, which falls under the agricultural sector.
- Sustainable Food Production – Both Ÿnsect and Agronutris are involved in insect agriculture, which is a part of the sustainable food production industry focused on innovative, eco-friendly protein solutions.
- Private Equity and Venture Capital – The financial difficulties faced by Ÿnsect and Agronutris highlight the role of venture capital and private equity in funding innovative food technologies.
Financials
- $580 million – Total amount of funding raised by Ÿnsect since 2011 from various investors.
- $135 million – Additional funding required by Ÿnsect to reach its 2028 revenue goals.
- $108 million – Approximate third-party liabilities of Ÿnsect, excluding bonds.
- $137 million – Target revenue for Ÿnsect in the year 2028.
- $6 million – Revenue reported by Ÿnsect in 2023.
- €100 million – Funding secured by Agronutris in October 2021 for commercial-scale facility development.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ÿnsect | Target Company | Company | An insect agriculture startup facing financial difficulties, founded in 2011 by Antoine Hubert and Alexis Angot. |
| Agronutris | Other | Company | A French insect agriculture startup, involved in producing oils and proteins, currently seeking restructuring. |
| Aspire Food Group | Other | Company | Canadian cricket farming company mentioned in the context of the sector's funding challenges. |
| Astanor | Investor | Company | An investor in Ÿnsect, involved in financing innovative food technology startups. |
| BPI France | Investor | Company | A French public investment bank and investor in Ÿnsect. |
| Crédit Agricole | Investor | Company | A multinational French bank and investor in Ÿnsect. |
| Upfront Ventures | Investor | Company | A venture capital firm that has invested in Ÿnsect. |
| Footprint Coalition | Investor | Company | An organization focused on sustainable investment and a backer of Ÿnsect. |
| Innovafeed | Competitor | Company | A company in the insect agriculture sector, which has successfully transitioned from experimental to industrial scale operations. |
| Protix | Competitor | Company | A competitor in the insect protein sector, noted for overcoming industrial scaling challenges. |