San Diego-based MedCrypt, a maker of cybersecurity software for medical devices, has raised $5.3 million in a Series A funding round led by Section 32. Other participants include Eniac Ventures and Y Combinator, the latter of which included MedCrypt as part of its Winter 2019 batch.
WHAT THEY DO
While many medical device security companies are focusing their efforts on provider customers looking to protect legacy equipment, MedCrypt sees an opportunity in contracting with the device makers early on to support new or upcoming products. Its software product covers any medical device that has a computer processor, and meets the cybersecurity regulations and recommendations recently stressed by the FDA.
"Patient data privacy has long been a concern, but the healthcare industry is just beginning to address patient safety risks presented by internet-connected healthcare technology," Vidya Murthy, VP of operations at MedCrypt, said in a statement. "Research shows a 13.3% higher mortality rate for patients experiencing a cardiac arrest whose care was delayed by four minutes. While cybersecurity attacks to a device such as a pacemaker seem more dangerous, delays to patient care due to cyberattacks are much more real and likely."
WHAT IT’S FOR
According to the announcement, MedCrypt is looking to expands its sales and engineering teams while continuing to develop its software product.
MARKET SNAPSHOT
This latest round comes less than a year after MedCrypt announced a $1.9 million seed funding raise, and brings the company’s total fundraising to $8.4 million. However, it’s not the only cybersecurity startup looking to ward off hackers — Medigate, Cynerio and CyberMDX have all seen fresh rounds within the past year.
ON THE RECORD
"Internet-connected medical technology is entering the market at light speed, calling for devices to be secure by design, which leads to a heightened level of patient safety at all times,” Mike Kijewski, CEO and founder of MedCrypt, said in a statement. “We're thrilled to see continued support from various groups in the industry, from the government to healthcare institutions and device vendors, along with support from our partners to help us further develop our technology and expand our team."
