Aspire Food Group secures funding after massive layoffs, plans restructuring in 2024

By Agroempresario.com

Aspire Food Group, a pioneer in edible insect production, has secured new financing after facing serious financial challenges that led to the reduction of its production and the dismissal of two-thirds of its staff at its London, Ontario, plant last month.

David Rosenberg, who took over as CEO at the end of last year, confirmed that the capital injection is significant, but warned that "more money will be needed in 2025" to ensure the company's long-term viability. According to the executive, Aspire plans to rehire staff in the summer of 2024 after implementing improvements in its production processes.

"We are working to secure financing because demand remains strong, but we need to scale and produce consistently", Rosenberg said, in a quote taken from the AgFunderNews article.

News of the mass layoffs came as a surprise to staff, who received their termination letters abruptly at the end of their shifts. “It was shocking”, one former employee said.

Aspire has faced significant challenges in betting on full automation in cricket farming, an approach that industry experts say is more complex and less predictable than farming other insects, such as black soldier fly larvae (BSFL).

“They have made progress in bioconversion and development, but the financial market is not always patient,” one insect industry source told the same outlet.

With this new financing, Aspire will seek to stabilize its operation and get back on the path to scaling, although technical and financial challenges remain.