Core Insights - Ÿnsect, a French startup focused on insect farming, has entered judicial liquidation due to insolvency, despite raising over $600 million in funding [1][2] - The company's failure to revolutionize the food chain with insect-based protein can be attributed to indecision in its market focus and revenue generation strategies [3][4] Financial Performance - Ÿnsect's revenue peaked at €17.8 million (approximately $21 million) in 2021, but by 2023, the company reported a net loss of €79.7 million ($94 million) [6] - The revenue figures were reportedly inflated due to internal transfers between subsidiaries [6] Market Strategy - The company initially focused on producing insect protein for animal feed and pet food, but later acquired Protifarm to enter the human food market, which was expected to contribute only 10% to 15% of revenue in the coming years [4][5] - This acquisition occurred at a time when Ÿnsect needed significant revenue growth, indicating a misalignment in strategic priorities [5] Investment Landscape - Ÿnsect attracted impact-focused investors by promoting a sustainability vision as an alternative to traditional protein sources like fishmeal and soy [7][8] - The sustainability pitch, while compelling, faced challenges in the commodity-driven animal feed market, where price rather than sustainability dictates purchasing decisions [9]