Baobab Insurance Secures €12M to Combat Rising Cyber Threats

Cyber insurance specialist Baobab has closed a €12 million Series A funding round, positioning itself for aggressive expansion across European markets as cyber threats intensify, according to a report in Finanzwelt.

Viola FinTech led the investment, with eCAPITAL as co-lead investor. The round also included existing backers Augmentum FinTech, Project A Ventures, and advisor Christof Mascher, former Allianz SE board member.

The Berlin-based startup stands out in Germany's cyber insurance landscape by offering integrated, AI-powered risk prevention alongside traditional coverage. This approach has already prevented over €10 million in damages for clients within just a few years of operation.

"Phishing, CEO fraud, and ransomware have become real threats to European businesses – and AI is making the threat landscape worse," said co-founder and CEO Vincenz Klemm. The company's AI-based underwriting process provides data-driven insurance solutions for businesses with up to €1 billion in revenue.

The funding comes as cyber security investments have surged 250% since 2019, with a 60% jump in 2023 alone. According to Baobab, cyber crime cost Germany €203 billion in 2023 – equivalent to 5% of the country's entire GDP.

Baobab plans to strengthen its free risk prevention services for mid-market customers while expanding its product portfolio. The company will significantly grow its team across incident response, software development, broker management, and claims processing.

Over the next 12 months, Baobab aims to solidify its position in Germany and Austria while entering additional EU markets. The company offers continuous AI-based cyber security monitoring, providing businesses with comprehensive protection from sophisticated hacker groups.