Jarna Hyvönen's Volare Raises €7.1 Million and Opens a 5,000-Tonne Insect Protein Factory in Finland

Volare, a Finnish company that turns food-industry by-products into protein using insects, has raised €7.1 million in new funding and opened its first industrial-scale factory, marking a milestone for Europe's emerging insect protein industry.

The round, announced on 26 October, was led by Springvest, with participation from new and existing investors, including venture capital firm Maki.vc. The money will finance a second factory and wider European expansion.

The company's first plant, Volare 01, is located in Pori, on Finland's west coast. Built in a former newspaper printing hall covering 10,000 square metres, it was delivered on schedule and within its €15 million budget and is designed to produce up to 5,000 tonnes of insect protein and 2,000 tonnes of insect oil each year.

A Woman Leading Industrial Food Tech

Volare was founded in 2021 by Jarna Hyvönen, Tuure Parviainen and Matti Tähtinen as a spin-off from VTT Technical Research Centre of Finland, the country's leading state-owned research institute. Hyvönen serves as chief executive.

The company's technology has deeper roots: work on its process began at VTT in 2014, illustrating the long development timelines typical of deep-tech and industrial biotechnology ventures.

"Volare 01 proves that our technology and production model work at industrial scale," Hyvönen said. Moving from laboratory and pilot production to an industrial plant is one of the most difficult steps for food technology companies, and many have struggled to make the transition on time and on budget.

Hyvönen's leadership of an industrial food-tech venture is notable in a sector where women remain under-represented among founders and chief executives, particularly in capital-intensive manufacturing businesses.

How It Works

Volare uses the larvae of the black soldier fly, an insect that can consume a wide range of organic material. The larvae are fed side streams from the food industry, by-products that might otherwise be discarded or used for low-value purposes, and convert them into protein and fat within about a week.

The company says its process covers the full chain, from rearing larvae to producing finished protein and oil ingredients, and generates no process wastewater. The resulting protein can be used in animal feed, including fish feed and pet food.

Customers Lined Up

Volare has secured significant commercial commitments. Skretting, one of the world's largest producers of aquaculture feed, has agreed offtake contracts covering a significant share of the Pori plant's capacity.

The company's protein has been used commercially since 2022, including in insect-based dog treats with Alvar Pet, cat food under the Dagsmark brand of Vafo Group, and rainbow trout feed with Alltech Fennoaqua.

Why Insect Protein Matters

The global food system faces growing pressure to produce more protein with fewer environmental impacts. Aquaculture and livestock feed rely heavily on soy, much of it imported from South America, where its cultivation has been linked to deforestation, and on fishmeal made from wild-caught fish, which places pressure on ocean ecosystems.

Insect protein offers an alternative. Insects can be reared on organic by-products, require relatively little land and water, and convert feed into protein efficiently. By using food-industry side streams, insect production can also contribute to a circular economy, turning waste into valuable products.

"Europe needs significantly more locally produced protein," Hyvönen said, reflecting broader concerns about Europe's dependence on imported protein for animal feed.

An Industry at a Crossroads

Europe's insect protein industry has experienced both enthusiasm and setbacks. Several companies raised large sums to build insect farms, but some have struggled with high production costs, technical challenges and slower-than-expected demand. Ynsect, a French company that was once among the best-funded in the sector, entered insolvency proceedings, highlighting the difficulties of scaling.

Volare's ability to deliver its first plant on budget, with committed offtake from a major feed producer, offers a counterpoint and may help restore investor confidence in companies that can demonstrate disciplined execution and clear customer demand.

Plans for Expansion

The new funding will support Volare's second factory and broader European expansion. The company plans to build multiple plants alongside food-industry partners, locating production close to sources of side streams to reduce transport costs and integrate with existing food processing operations.

That model could allow Volare to scale more efficiently, using partners' by-products as feedstock and sharing infrastructure.

Relevance for India

Insect protein is gaining attention in India as well, where aquaculture is a major and growing industry, and the cost and availability of fishmeal and soy-based feed are significant concerns for fish and shrimp farmers. Several Indian startups are working on black soldier fly farming to convert organic waste into feed and fertiliser, addressing both waste management and feed supply challenges.

India generates vast quantities of agricultural and food processing waste, which could serve as feedstock for insect production. Models like Volare's, which integrate with food industry partners, could offer lessons for scaling such ventures.

The Policy Landscape

European regulators have gradually opened the door to insect protein. The European Union has approved the use of insect protein in feed for aquaculture, poultry and pigs, as well as in pet food, while several insect species have been authorised as novel foods for human consumption. These approvals have created a legal framework for the industry to grow, though rules on which side streams can be used as insect feed remain a constraint.

Policy support for alternative proteins is also linked to broader goals of reducing reliance on imported soy and strengthening food security. The European Commission has highlighted protein self-sufficiency as a strategic objective, particularly after supply chain disruptions in recent years. Companies such as Volare, which convert local by-products into protein for European feed producers, fit squarely within that agenda and could benefit from public funding programmes aimed at sustainable food systems.

What Comes Next

With its first factory operational and new funding secured, Volare will focus on ramping up production at Pori, supplying its customers and advancing plans for its second plant. Its progress will be watched closely as a test of whether insect protein can become a commercially viable part of Europe's food and feed system.

For women founders in deep tech and industrial innovation, Hyvönen's success in taking a technology from the laboratory to an industrial plant offers a powerful example.