Bpifrance, the French public sector investment bank, has over $30m of public money on the line after one of its portfolio companies filed for insolvency.
On Monday, insect protein startup Ÿnsect said it faced a “cash flow deadlock” by the end of March, and filing insolvency proceedings would enable it to open a call for bids to sell the business for parts before that deadline.
Ÿnsect, which farms beetles and transforms them into protein ingredients that can be used to create food for animals and humans, has been facing financial difficulties for months as it struggles to scale up an industrial production plant dubbed Ÿnfarm launched in 2020.
The company has raised over $600m to date meaning there’s a significant amount of investors’ cash on the line, should it fail to convince buyers.
Sifted understands French public bank Bpifrance is the investor with the most on the line, having ploughed at least $30m into the business.
Bpifrance first backed the company in 2016, when it raised a $15.2m Series B, before participating in Ÿnsect’s Series C in 2020. A source close to the company tells Sifted that it backed the company again in its Series D — made up of a €160m from undisclosed investors in 2023, and a €50m extension at the start of 2024.
Bpifrance declined to comment on how big its share is.
Astanor Ventures
Another major investor is Astanor Ventures, a Belgium-based VC firm focused on food and agriculture investments.
Ÿnsect was one of the firm’s big bets: Astanor told Sifted it put “slightly less than 10%” of its first fund into the business, equating to roughly $32m. Astanor founder Eric Archambeau, who previously invested at Balderton, sits on the company’s board.
The VC had been Ÿnsect’s largest shareholder up until 2021, and confirmed to Sifted that it now holds a 10% stake.
Other equity investors understood to have less on the line include US investor Upfront, as well as European VCs Talis Capital, Partners in Equity, Demeter and Eurazeo.
Ÿnsect’s Series C also included $126m in debt, which the company raised with a consortium of private banks including Caisse des Dépôts (the venture arm of the French state), Crédit Agricole Brie Picardie, and Caisse d’Epargne Hauts-de-France.
The funding was intended to build Ÿnfarm. Sifted understands that a small proportion of the debt has been repaid.
Read the orginal article: https://sifted.eu/articles/bpifrance-30m-ynsect-collapse-news/
