VSEs, SMEs, and mid-sized companies represent nearly 40% of victims of ransomware attacks, claims ANSSI. In addition, Anozr Way claims that 60% of SMEs attacked go bankrupt within 18 months. Despite the massive number of businesses being vulnerable to a threat as devastating as cyberattacks, SMEs and mid-sized companies are the least well-protected ones against what has become the number one risk in business. For a long time, cyber insurance products and cybersecurity tools were only aimed at large groups. This is where Stoïk made a difference with cyber insurance adapted to the needs of SMEs and mid-sized companies.
Closes €25M funding
Now, France’s first cyber insurtech firm has raised €25 million in Series B funding. The round was led by French VC Alven (which recently backed Kestra and Supercede) with participation from existing investors: Andreessen Horowitz, Munich Re Ventures, Opera Tech Ventures, and Anthemis.
The latest round follows the €10 million funding raised last year and the €11 million investment secured back in 2022.
Stoïk also announced the addition of Cyber Integrity Capital (CYBICA) and Tokio Marine HCC International (TMHCCI), a specialty insurance group and a member of the Tokio Marine HCC (TMHCC) group of companies based in Houston, Texas, as a new investor. Previously, the company partnered with TMHCCI as one of its risk carriers for over a year and extended it a few months back, increasing its capacity to insure companies with turnovers of up to €750 million, and coverage limits reaching €7.5 million.
Eyes expansion within Europe
With this new financing round, Stoïk aims to further solidify its position as a key player in the cyber insurance space for European SMEs. Its immediate focus will be on scaling the distribution of its managed EDR (Endpoint Detection & Response) product, Stoïk MDR, through partner brokers. The company also plans to further expand its European footprint, building on its success in Germany and recent office openings in Austria and Monaco. It also enhances its cyber insurance offerings by introducing adjacent coverages such as Professional Indemnity for specific industry verticals.
Stoïk’s European expansion has been swift, with notable success in Germany, where its recently opened Cologne office has already generated several million euros in premiums through more than 100 local brokers.
In addition to these, the French startup is bolstering its team with a focus on technical talent to support this growth. Key hires include a Group Head of Underwriting and additional cybersecurity and developer roles to drive innovation and strengthen its product suite.
Protects SMEs against threat
Founded in 2021 by Jules Veyrat, Alexandre Andreini, Nicolas Sayer, and Philippe Mangematin, Stoïk empowers brokers by providing their clients with insurance policies and protection against cyber risks. Its mission is to provide them with the means to insure and protect their customers against cyber risk.
Its unique insurance product in the market offers a simplified underwriting process through automated tests that replace traditional questionnaires, continuous prevention with integrated cybersecurity tools, and prompt and efficient incident response through an in-house team of crisis management experts.
The company offers a cyber insurance product tailored to the specific risk profiles of SMEs, combined with its prevention platform, Stoïk Protect, and an in-house incident response team, Stoïk-CERT. Last year, it launched Stoïk MDR, a managed cybersecurity service that complements its insurance product, giving SMEs access to the security of a managed SOC without the high costs of staff and tools.
This comprehensive approach to cyber risk has attracted over 1,000 insurance brokers across France, Germany, and Austria. By the end of 2024, Stoïk is on track to have 5,000 policyholders, €25 million in premiums, and strong underwriting profitability.
Currently, Stoïk provides brokers in France, Germany, and Austria with an innovative platform to generate quotes in minutes, offer continuous risk prevention, and deliver fast assistance and compensation in case of a claim.
“Through this financing, our past investors are showing us the extent of their trust in the development and the longevity of Stoïk, and I would like to thank them for this. The investment of one of our major partners, Tokio Marine HCC International, only strengthens this feeling of trust. We are going to speed up our expansion thanks to this 25 million euros Series B, and we are going to expand our products and keep growing in France, Germany, and everywhere in Europe,” said Jules Veyrat, CEO and Co-founder of Stoïk.
Investors’ views
“Stoïk has gained popularity with insurance brokers and distributors in record time. We are impressed by the innovative vision of its leaders, their excellence in execution, as well as the exceptional growth of the company. We are delighted to continue supporting them on this adventure,” said Seema Amble, Partner at Andreessen Horowitz.
“Throughout our first year of partnership with Stoïk, we have been impressed not only by the product offered but also by the dynamism and execution of the teams in place. We are now looking forward to working more closely and supporting them as they continue to expand their services for the European SME market,” said Thibaud Hervy, Chief Underwriting Officer – Specialty Lines at Tokio Marine HCC International.
“Ever since our first investment, Jules and his team have managed to make their project grow at an impressive rate, thereby attracting the best talents. We look forward to seeing them strengthen their position in the market with this new financing,” added Thomas Cuvelier, Partner at Alven.
“Stoïk’s innovative approach towards cyber risk is bearing fruit, with the company excelling at managing cyber risks proactively rather than reactively on behalf of their European SME customers. We are pleased to support Stoïk and firmly believe they are well-positioned to become one of the major cyber insurance players in Europe, said Ben Bergsma, Principal at Munich Re Ventures.
The post First French cyber insurtech Stoïk grabs €25M from Andreessen Horowitz and others appeared first on Tech Funding News.