Two French nuggets were born in the sector of agritech and alternative food based on insects. These are Ynsect and Innovafeed, recognized by the general public thanks to their inclusion in the Next40 ranking of French Tech. For Ynsect, startup status does not rhyme only with hypergrowth. Despite the speed of the company to expand, it still faces difficulties in moving into the green. Today, in view of the new policies of investment funds to inject capital, agritech wants to become profitable as soon as possible.
This will therefore be his last step before moving on to another category. The end of the storm. But for that, you have to change your diet. The company which breeds insects to offer food products to animals and humans will close a factory in the Netherlands, lay off its staff (35 employees) and also open a voluntary departure plan with its French employees to discharge of 38 positions. On the one hand, its expenses have increased (rise in the price of electricity) and, on the other, Ynsect needs capital to maintain its level of investment.
Keep pace
Investment is essential to keep pace with production needs. Because the customers are at the rendezvous and the boss of Ynsect, Antoine Hubert spoke of more than a billion euros of contracts in negotiation in an article of Echos recently. Already today, there are 180 million euros in multi-year contracts and the company must therefore be able to maintain the pace in its factories. They are found in the Jura, in the Somme, but also in Nebraska in the United States thanks to the acquisition of Jord Producers, an American mealworm producer.
This somewhat difficult passage for society and its image must be the last. Especially in the context of a fully accounting project, to show the company in the green and start living from its own funds. Closing a factory when it is only a question of figures and not of a drop in demand is never easy and to avoid any problems, Ynsect has taken the decision to remain very secret.
One last fundraiser
This is how we learned on Monday that the company raised 160 million euros in Series D, but we do not know its valuation. As for the funding round, the company limits itself to saying that new investors have joined its capital and that the historical investors have agreed to put their hands in their pockets. In the past, in October 2020, Ynsect managed to raise 300 million euros, fresh money which had enabled it to continue its international deployment (in particular via the acquisition of Jord Producers in Nebraska).
Behind Ynsect and industrial startups, politicians are increasingly present. The start-ups’ turnaround, which caused the valuations of many nuggets to bleed, reminded the government and the entire ecosystem that the exit from the health crisis had turned the cards down, unbalanced the economy (with a return to rates interest rates and the end of “free” money) and the importance of having a strong industry.
Digital is one thing, but we must keep our feet on the ground and reminded us that local, carbon-free, innovative and potentially exportable production is essential for France.
Ynsect was able to join Emmanuel Macron during his State visit to the United States in December 2022. This presence in the delegation offered Ynsect a way to meet more players in the local ecosystem where the company wants to settle. , and offer an international image. The rest of the delegation also included Ledger, a new giant in French production thanks to its digital wallets for storing crypto-currencies, based in Vierzon.
During this trip, it was reported at the time that the startups had also been able to discuss with representatives of investment funds from KKR, Carlyle, Sequoia, BlackRock, Millennium and even Coatue.
