A startup combines cybersecurity software and insurance for small businesses

Monitoring tools provide business owners with a cybersecurity score and tips for reducing exposure

Spotted: Recently-launched French startup Stoïk provides small and medium-sized enterprises (SMEs) with both cybersecurity insurance, and a software tool that monitors exposure to cyber-attacks. By combining the two products, Stoïk hopes to offer SMEs peace of mind that they are fully-protected against a threat that is particularly acute for small businesses.

According to the company, 40 per cent of European businesses fell victim to a cyber-attack in 2020, and 50 per cent of attacks were directed at small companies. The median cost of these attacks was €50,000. SMEs are especially exposed to cyber-risks as they tend to lack security controls to protect their software infrastructure.

On the insurance side, Stoïk works with third-party insurance companies to develop products tailored to the needs of their clients. The startup then connects with clients directly – rather than through brokers. Stoïk’s insurance covers costs such as those related to the reconstruction of data and civil liability for data leaks. It also covers loss of operating margin and expenses related to ransomware attacks – which SMEs are particularly vulnerable to. A 24/7 hotline is available for Stoïk customers, enabling them to consult with technical experts in the event of an attack.

The software tools provided by Stoïk allow businesses to monitor vulnerabilities in their network. Scans provide customers with an easy-to-understand cyber-security score supported by a tailored list of recommended actions for plugging gaps in their defences. By providing businesses with tools to remove vulnerabilities, Stoïk is aligning its interests with those of its customers, as well-protected companies are less likely to require an insurance pay-out.

The company recently received seed funding of $4.3 million (€3.8 million), part of which it will use to add new features to its products – such as the ability to scan internal accounts.

Cybersecurity is a growing industry, and Springwise has recently spotted is attempts to replace passwords with cryptographic keys and multiple layers of biometrics.