Berlin-based insurtech company Baobab, which specializes in cybersecurity risk, has secured €12 million in Series A funding from eCapital VC, with support from Project A and Viola Fintech.
- Founded in 2021 by Vincenz Klemm and Anton Foth, Baobab provides cyber risk protection for small and medium-sized enterprises (SMEs) by combining insurance coverage with integrated cybersecurity tools.
- The company issues cyber insurance policies paired with automated risk scans to detect vulnerabilities in clients' digital systems. Based on these scans, Baobab recommends specific technical measures to reduce exposure. Coverage includes protection against personal and third-party damages, along with access to 24/7 emergency support.
- Baobab works closely with insurance brokers, offering a digital platform streamlining policy management and customer onboarding. Its approach is underpinned by machine learning-based cyber risk assessment research, co-funded by Investitionsbank Berlin (IBB) and the European Regional Development Fund (ERDF).
Details of the deal
- The investment saw support from eCapital VC, a German VC firm that provides early to growth stage funding to technology companies.
"At eCAPITAL ENTREPRENEURIAL PARTNERS, we back visionary founders who leverage technology to create sustainable, meaningful impact. Baobab is a perfect fit for our portfolio, combining proprietary tech innovation with a clear, purpose-driven approach," claims Lucas Merle, Principal at eCAPITAL.
- The round also saw participation from Project A, a Berlin-based venture capital firm, Viola Fintech, which backs global fintech startups, and Augmentum Fintech, a UK-based fintech-focused investor.
- Baobab will use the €12 million to improve its risk assessment, expand scanning tools, grow its teams, and accelerate European market expansion.
