Baobab, which bundles cybersecurity and cyber insurance services, has reportedly collected €3.5m in its pre-seed funding round.
Project A Ventures served as the lead investor, with commitments also coming from LA Famiglia and Discovery Ventures, according to a report from EU Startups. The round was also backed by several angel investors.
The capital injection will support Baobab’s launch in Germany, as well as foster growth into other European countries. Baobab also plans to use the funds to hire insurance, technical and cybersecurity professionals.
Baobab assesses a company’s risk, secures them and insurers them against losses. A risk assessment is completed to understand the vulnerabilities and cybersecurity experts then offer advice to protect the business.
Baobab co-founder Vincenz Klemm said, “Losses from cybercrime are projected to hit $6 trillion globally in 2021, up 100% from 5 years ago. Evaluating the risks posed to a company’s system is the biggest challenge for any SMEs.
“That’s why Baobab not only insures SMEs against cyber risks but at the same time provides protection and monitoring against attacks. Our incentives are aligned with the customers as our insurance has to pay out if our risk mitigation does not work.”
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