Summary:
Stoïk raises $27 million for cyber insurance tailored to SMEs.
Focuses exclusively on European companies, unlike U.S. competitors.
Offers coverage up to €7.5 million for businesses with annual turnover under €750 million.
Includes an in-house crisis management team for incident response.
Plans to expand into new European markets by 2025.
Tackling Cyber Risk for SMEs
Cyber risk is becoming an increasingly critical issue for small and medium-sized enterprises (SMEs) across the globe. While many businesses focus on avoiding and mitigating these risks, they often overlook the option of transferring them to a third party.
Stoïk's Innovative Solution
Enter Stoïk, a French startup that has developed a cyber insurance product specifically tailored for SMEs. Recently, Stoïk raised €25 million (approximately $27 million) in a Series B funding round. Unlike its U.S.-based counterparts like Coalition and At-Bay, Stoïk exclusively targets European companies.
Comprehensive Coverage
Once insured, businesses can claim compensation for revenue losses due to cyber incidents. For instance, if a cyber event forces a company to halt operations, Stoïk can cover loss of revenue during that downtime, up to €7.5 million for companies with an annual turnover of €750 million or less. Currently, Stoïk operates in France, Germany, and Austria.
A Complex Landscape
The startup's focus on cyber insurance stems from its complexity compared to other insurance types. Stoïk has established an in-house crisis management team to assist clients with incident response, data recovery, and crisis communication.
Co-founder and CEO Jules Veyrat noted the urgency of their service, stating, “Since the beginning of the week, we’ve had a dozen attacks on our portfolio, including a major one.”
Proactive Risk Management
When clients sign up, they receive an assessment of their cyber risk exposure. Stoïk actively monitors DNS records and checks for password leaks, alongside internal scans to recommend improvements to clients' cloud and active directory setups.
“Our thesis is that we’re going to insure companies while helping them better protect themselves against cyberattacks,” Veyrat explained.
Managing Risk Effectively
Stoïk operates as a Managing General Agent (MGA), collaborating with larger insurance companies to manage risk. One of its partners is Tokio Marine HCC International, which participated as a new investor in Stoïk's Series B funding.
Stoïk doesn’t sell directly to customers but works through third-party insurance brokers. With plans to onboard 5,000 policyholders by the end of 2024, the startup aims to expand into new European markets starting late 2024 or early 2025.
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