Cyber insurance startup Baobab, a Germany-based InsurTech firm specialising in AI-driven cyber protection, has raised €12m in a Series A funding round aimed at expanding its operations across Europe.
The round was co-led by Viola FinTech and eCapital, with further participation from Augmentum Fintech, Project A Ventures, and Christof Mascher, a former executive at Allianz, according to InsurTech Insights.
This latest raise brings Baobab’s total funding to €20m since its inception in 2021.
Baobab, which currently operates in Germany and Austria, offers cyber insurance through a fully integrated digital platform. The firm partners with Zurich Insurance to provide cyber coverage, combining AI-based underwriting with proactive risk management tools designed to shield businesses from phishing attacks, CEO fraud, and ransomware incidents.
The newly acquired capital will be used to support Baobab’s growth into additional European markets and to enhance its technology suite for SMEs. The firm plans to strengthen its AI-powered underwriting system and expand its partnerships with insurance brokers, enabling better protection against evolving cyber threats.
Baobab’s approach has attracted attention from investors due to the growing urgency of cyber resilience in Europe, especially against a backdrop of increasing geopolitical tension. The company’s solution blends advanced AI with insurance expertise, offering brokers a unique and powerful set of tools to manage risk effectively.
Baobab CEO Vincenz Klemm said, “Phishing, CEO fraud, and ransomware have become a real threat to European companies, and AI is exacerbating the threat. Thanks to our AI-native underwriting process and integrated, active, and free risk management, we equip and empower insurance brokers with solutions that provide the best possible protection against these dynamic risks. The new capital will enable us to continue preventing millions in losses for our customers and expand into other European countries.”
Viola FinTech general partner Prof Daniel Tsiddon added, “Global tension creates safe havens for cyber criminals. With tensions on European borders increasing, businesses become more vulnerable to cyberattacks. Building on a super novel approach at the right time in history, Baobab offers the much-needed protection to European companies.”
Baobab previously raised €8m before this latest round, bringing its total investment to €20m as it accelerates development of cyber-focused insurance offerings for European SMEs.
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