Our founder and managing director Vincenz Klemm about the financing round

On the occasion of our 5 million euro financing round, we have our CEO Vincenz Klemm asked a few questions.

The round is being financed by the London-based venture capital fund Augmentum Fintech directed. Our pre-seed investors from Berlin, including Project A Ventures and La Famiglia , are also taking part in the round. Augmentum is the leading publicly traded fintech fund in Europe. In addition to Baobab, the fund invests in startups such as Berlin's Unicorn Grover. However, investing in Baobab is special as it is the first InsurTech investment in the portfolio.

Especially in the current market situation, a round cannot be taken for granted, which is why we are all the more proud of this financing. Together with our investors, we will work to achieve our goals over the next few years.

What does Baobab want to achieve with the help of the raised capital?

“With the capital raised, we want to get closer to the goal of Market leader for cyber insurance in Europe to become.

The next strategic steps are expansion to Austria, sharpening the in-house risk model, and expanding the existing cyber security offering. We are also investing in the development of digital offerings that are made available to brokers free of charge in order to sell cyber insurance more successfully.”

It's been a year since the pre-seed round. Looking back, what was the beginning of Baobab?

“In the beginning, there was the wish of the two founders, i.e. Anton Foth and me to found or manage an InsurTech company once again after we had both done this for years with ups and downs.

Coming from the USA, I have seen that cyber insurance is thought of much more closely in connection with cyber security. Anyone who insures cyber must understand the customer's risk and offer the opportunity to reduce cyber risks. Anton and I wanted to implement this in Germany.”

In your opinion, what is the best product feet/unique selling point (USP) of Baobab?

“Clearly the connection between Sales support for brokers, a granular risk model, Scan-based underwriting and Cyber security services for end customers.

All of this is based on our cyber security DNA, which we have anchored in the company since its inception.”

Building relationships with our brokerage partners is particularly important. What have you learned about this in the last few months?

“I've learned that brokers are quite open to cooperating with a new innovative cyber provider like us. 7 of the 10 largest German brokers are already cooperating with us.

But I also see that there is a group of brokers who are still struggling to advise on cyber risks. It is necessary to support them even better.

Overall, however, there is a lot in motion and things are heading in the right direction. There is great interest.”

What was the biggest challenge and highlight in the context of launching and growing the company?

“It was certainly a highlight and also a challenge at the same time, with Zurich to convince one of the largest international insurers to enter into a partnership.

With Jutta Berger We work very well and enjoy working together.”

What do you think will be the biggest challenge next year?

“We must now focus on delivering to brokers and their customers what we promise.

This means: For the customer a cyber insurance with integrated cyber security offer that reduces cyber risk. That is why it is important to listen carefully and further adapt our offer to their needs.”

What are you most looking forward to in 2023?

“I am looking forward to many interesting and instructive discussions with brokers and end customers. And, of course, together with our brokerage partners, to protect more end customers against cyber risks with baobab.”