Stoïk Secures €25 Million Series B Funding to Strengthen Cyber Insurance for SMEs

In a significant move for the European cyber insurance landscape, French leader Stoïk has announced a €25 million Series B funding round. This round was led by Alven, with notable participation from existing investors including Andreessen Horowitz, Munich Re Ventures, Opera Tech Ventures, and Anthemis. The funding is poised to bolster Stoïk’s mission of protecting small and medium-sized enterprises (SMEs) against the rising tide of cyber threats.

New Partnerships and Investments

Adding to the excitement of this funding round, Stoïk has welcomed two new investors: Cyber Integrity Capital (CYBICA) and Tokio Marine HCC International (TMHCCI). The latter is a prominent specialty insurance group based in Houston, Texas, and has been a risk carrier for Stoïk for over a year. This partnership not only enhances Stoïk’s credibility but also signifies a growing trust in its innovative approach to cyber insurance.

A Rapidly Growing Player in Cyber Insurance

In just three years, Stoïk has carved out a niche in the insurance market by addressing the unique challenges posed by cyber attacks to the European economy. The company offers a tailored cyber insurance product specifically designed for SMEs, complemented by its prevention platform, Stoïk Protect, and an in-house incident response team known as Stoïk-CERT. This comprehensive approach has resonated with the market, attracting over 1,000 insurance brokers across France, Germany, and Austria.

In April, Stoïk expanded its offerings with the launch of Stoïk MDR, a managed cybersecurity service that provides SMEs with access to a managed Security Operations Center (SOC) without the prohibitive costs associated with staffing and tools. This strategic move has further solidified Stoïk’s position as a leader in the cyber insurance sector.

Impressive Growth Metrics

Stoïk’s growth trajectory is impressive. The company is on track to have 5,000 policyholders by the end of 2024, generating €25 million in premiums while maintaining strong underwriting profitability. Its recently opened office in Cologne has already made significant strides, generating several million euros in premiums through over 100 local brokers.

Innovative Technology and Broker Support

Stoïk leverages digital technology to empower brokers in France, Germany, and Austria with an innovative platform that allows them to generate quotes in minutes. This platform not only facilitates quick quote generation but also provides continuous risk prevention and rapid assistance in the event of a claim. Last month, Stoïk announced an expansion of its partnership, increasing its capacity to insure companies with turnovers of up to €750 million and coverage limits reaching €7.5 million.

Leadership Insights

Jules Veyrat, CEO and co-founder of Stoïk, expressed gratitude towards the investors for their trust and support. He stated, “Through this financing, our past investors are showing us the extent of their trust in the development and the longevity of Stoïk. 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 and keep growing in France, Germany, and everywhere in Europe.”

Seema Amble, Partner at Andreessen Horowitz, echoed Veyrat’s sentiments, highlighting the impressive product and execution of Stoïk’s teams. “We are now looking forward to working more closely and supporting them as they continue to expand their services for the European SME market,” she remarked.

Thomas Cuvelier, Partner at Alven, praised Stoïk’s proactive management of cyber risks, stating, “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 believe they are well-positioned to become one of the major cyber insurance players in Europe.”

Future Plans and Expansion

With the new funding, Stoïk aims to further solidify its position as a key player in the cyber insurance space for European SMEs. The company’s immediate focus will be on scaling the distribution of its managed EDR (Endpoint Detection & Response) product, Stoïk MDR, through partner brokers. Additionally, Stoïk plans to expand its European footprint and enhance its cyber insurance offerings by introducing adjacent coverages such as Professional Indemnity for specific industry verticals.

Conclusion

As cyber threats continue to evolve, the need for robust cyber insurance solutions has never been more critical. Stoïk’s innovative approach, backed by significant investment and strategic partnerships, positions it as a formidable player in the European cyber insurance market. With a commitment to protecting SMEs and a clear roadmap for expansion, Stoïk is set to lead the charge in safeguarding businesses against the growing risks of the digital age.