Robert Downey Jr.-backed startup Ÿnsect on path to closure

Staff Report: PNN

French insect-based protein company Ÿnsect, once internationally acclaimed, is now on the path to bankruptcy. Despite raising over $600 million, the company faced persistent financial struggles.

Ÿnsect aimed to produce protein from insects for human and animal consumption. The company’s revenue peaked at €18.7 million in 2021, declining to €8 million in losses by 2023. Overambitious industrial plans, market misjudgment, and early large-scale investment contributed to its downfall.

While Ÿnsect struggles, smaller companies in the insect protein sector continue expanding sustainably. The case highlights the gap between innovative funding and real-world production feasibility.