UK listed fintech fund Augmentum has led a funding round into Berlin-based cyber insurance platform Baobab, with a €3 million investment.
This is Augmentum’s first investment in the insurtech space and its second in Germany following an investment in consumer technology subscription platform, Gover.
With capacity provision from Zurich, Baobab uses a novel approach to underwriting, pricing and risk mitigation in providing cyber insurance for SMEs, and works with cyber security providers to prevent breaches for its insured customers.
Tim Levene, CEO of Augmentum Fintech, comments: “We are pleased to lead Baobab’s new investment round. We have strong conviction that new risks are driving opportunities in insurtech and cyber represents a fast growing and underpenetrated market. The team demonstrates strong execution capabilities in developing a solid product, building out a rapidly expanding network of broker partners across Germany and have secured backing from a leading tier one capacity provider in Zurich."
Augmentum's fintech portfolio now comprises 25 private companies including the likes of Tide, Zopa and Anyfin - diversified across fintech verticals, stages of maturity and geographies. Despite the current public markets volatility, Levene believes the portfolio continues to provide significant growth potential and the top five portfolio companies have an average year-over-year revenue growth rate of 102%1.
One fly in the ointment is Augmentum's backing for crypto platform Gemini, which has been caught up in the bankruptcy of crypto lender Genesis Global.
"Gemini’s ongoing engagement with Genesis Global is solely as an agent acting on behalf of Gemini users who hold outstanding claims against Genesis Global," states Augmentum in a trading update. "Augmentum has seen no information to date that would lead them to believe their holding value in Gemini requires revision. Augmentum has a level of downside protection on its investment in Gemini and continues to closely engage with management."