The round was co-led by Viola FinTech and eCapital, with participation from Augmentum Fintech, Project A Ventures, and Christof Mascher, former Allianz executive. This brings Baobab’s total funding to €20 million since its launch in 2021.

Currently operating in Germany and Austria, Baobab provides cyber insurance and cyber protection through a fully integrated platform. The company partners with Zurich to offer cyber coverage, combining underwriting with active risk management to help businesses defend against threats such as phishing, CEO fraud, and ransomware.

“Phishing, CEO fraud, and ransomware have become a real threat to European companies, and AI is exacerbating the threat,” said Vincenz Klemm, Co-founder and CEO of Baobab Insurance. “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.”

Investors see Baobab as a timely and necessary solution for a growing threat landscape. “Global tension creates safe havens for cyber criminals. With tensions on European borders increasing, businesses become more vulnerable to cyberattacks,” said Prof Daniel Tsiddon, General Partner at Viola FinTech. “Building on a super novel approach at the right time in history, Baobab offers the much-needed protection to European companies.”

With fresh capital in hand, Baobab aims to accelerate its expansion and continue developing technology-driven cyber solutions for Europe’s small and medium-sized enterprises.