Berlin-Based Baobab Insurance Secures €12M In Series A Round

The round was led by Viola FinTech and eCapital, with support from existing investors Augmentum Fintech, Project A Ventures, and Christof Mascher, former Allianz SE board member and Baobab’s advisory board member.

Vincenz Klemm, Co-founder and CEO of Baobab Insurance 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.”

Its products include cyber insurance, e-crime coverage, and IT liability policies tailored for IT, software, tech, and telecom companies in Germany and Austria.

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Baobab also provides risk-relevant services like phishing simulations and awareness training, and claims to have helped prevent over €10 million in losses for its clients.

Prof Daniel Tsiddon, General Partner at Viola FinTech commented: “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 Insurance plans to grow its team, strengthen its presence in Germany and Austria, and expand its product offerings for commercial customers. It also aims to enter new EU markets within the next 12 months.

With cyberattacks becoming more advanced due to generative AI tools, the threat landscape is evolving rapidly. Statista estimates global cybercrime losses will reach €12 trillion by 2027, with the EU expected to bear 25% of that burden. A 2024 study by Germany’s domestic intelligence agency (BfV) reported a 29% rise in the financial impact of cyber incidents over the past year, significantly affecting the German economy.

Willi Mannheims, Managing Partner at eCAPITAL said: “Cyber risks cannot be handled lightly – the damage is already far too great for that. Baobab Insurance has a clear advantage: the team is committed to prevention and proactive risk management. The company’s approach has prevented losses amounting to over €10 million in the last three years alone, which speaks for itself. This determination is precisely what the market now needs to effectively counter the rapidly increasing threat.”

Baobab uses its own underwriting technology and continuous monitoring to protect clients from a wide range of digital risks. This approach has helped the company offer stronger protection and keep its loss ratio well below the market average.

As a result, leading insurers like Zurich, ERGO, Liberty Specialty Markets, Tokio Marine Kiln, Talbot (part of AIG), and Argenta (part of Hannover Re) have partnered with Baobab as risk carriers.

Christof Mascher, Advisory Board Member at Baobab Insurance and former member of the board of Allianz SE added: “The insurance industry is facing profound change, driven by technological disruption and new threats such as cybercrime. Baobab provides a technologically and actuarially compelling response to this. I am particularly impressed by the combination of data-driven underwriting, a scalable technology platform, and a focus on technical risks.”

About Baobab Insurance

Founded in 2021, Baobab Insurance is Germany’s first integrated provider of cyber insurance and risk mitigation, operating as a Managing General Agent focused on digital risks.