Stoïk, a French startup specializing in cyber insurance for small and medium-sized businesses (SMBs), has raised €25 million (approximately $27 million) in a recent Series B funding round. As cyber risks become an increasingly pressing issue for companies worldwide, particularly for smaller enterprises, Stoïk aims to provide a tailored solution that allows businesses to transfer these risks to a third party. Unlike other cyber insurance providers such as Coalition and At-Bay that primarily focus on the U.S. market, Stoïk is dedicated exclusively to European companies, filling a crucial gap in the market.
The startup offers coverage against a range of cybersecurity-related claims, ensuring that businesses are protected in the event of a cyber incident. For example, if a company needs to temporarily halt operations due to a cyberattack, Stoïk can compensate for the loss of revenue during that period, covering up to €7.5 million for businesses with annual revenues of €750 million or less. Currently, Stoïk operates in France, Germany, and Austria, and is committed to helping clients not only recover from incidents but also mitigate future risks through proactive monitoring and support.
In addition to its insurance products, Stoïk has established a small in-house crisis management team that responds to incidents and aids with data recovery and crisis communication. Co-founder and CEO Jules Veyrat highlighted the importance of this service, noting that the firm had mobilized teams in response to recent cyberattacks affecting their clients. When businesses sign up for coverage, they receive a comprehensive assessment of their cyber risk exposure, including monitoring of DNS records and scans for password leaks related to their domain names, which help clients better understand and manage their cybersecurity posture.
Stoïk operates as a Managing General Agent (MGA), collaborating with larger insurance and reinsurance companies to manage risks while creating its own rates and policies. Tokio Marine HCC International is a notable new investor in the funding round, alongside existing investors like Alven and Andreessen Horowitz. With plans to grow its policyholder base from 1,000 to 5,000 by the end of 2024 and a strategy to expand into new European markets annually, Stoïk is poised to become a significant player in the evolving cyber insurance landscape, helping SMBs navigate the complexities of cybersecurity threats.
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