After entering insolvency proceedings in February, French insect protein scaleup Ÿnsect has secured €10m in bridge funding from past investors allowing it to remain operational while it seeks more funding. On Monday, the embattled scaleup announced CEO Shankar Krishnamoorthy had stepped down and been replaced by Emmanuel Pinto, a partner at French turnaround advisory D&I, who specialises in supporting businesses undergoing financial distress. Ÿnsect has been struggling to fund its production plant Ÿnfarm, a 45k square metre industrial site launched in 2020, where it farms insects and transforms them into protein ingredients that can be used to create food for animals and humans. Despite raising more than $600m since launching in 2011, Ÿnsect found itself needing more capital to scale up Ÿnfarm. Earlier this year the company entered a ‘procédure de sauvegarde’ (safeguarding proceedings), which occurs when a business is facing financial difficulties but is not yet insolvent, and during which Ÿnsect sought an additional €130m. After failing to secure the funding, and with just a month of runway left, the company filed for insolvency proceedings in February, issuing a call for bids to sell for parts. Ÿnsect said it has since received an offer from a potential buyer for its 3,500 square metre pilot factory in Dole in eastern France, which is currently being analysed by the commercial court in charge of the case. The company declined to specify who the buyer is. There have not been any other offers. Instead, Ÿnsect’s historical investors have agreed to provide €10m in new funding, which the company says will secure “several months” of runway. The court has a follow-up hearing scheduled at the end of May. During this time, Ÿnsect will continue to talk to potential buyers and investors while running Ÿnfarm — although not at the plant’s full capacity. Ÿnsect did not share which investors participated in the fundraise. Sifted previously reported that French public bank Bpifrance is the company’s largest investor, having ploughed at least $30m into the business, followed by Astanor Ventures, a Belgium-based VC firm focused on food and agriculture investments.

Insect protein startup Ÿnsect replaces CEO, secures €10m bridge funding

French insect protein startup Ÿnsect, which had entered insolvency proceedings in February, secured €10m in bridge funding from past investors to remain operational while seeking additional funding. The company also replaced its CEO, Shankar Krishnamoorthy, with Emmanuel Pinto from French turnaround advisory D&I.