Israel-headquartered MDClone, maker of a Synthetic Data Engine for healthcare, has raised $26m (€23.5m) in a Series B funding round led by aMoon, a VC fund focused on health tech and life sciences, it was announced this week. Existing backers OrbiMed Israel Partners and Lightspeed Venture Partners also participated in the raise.

WHAT THEY DO

According to MDClone, its engine examines original patient data and generates new datasets based only on statistical data , containing no information that would risk exposing patient identity. The aim is to enable data to be accessed and analysed through the MDClone Healthcare Data Sandbox for quality improvement, research and innovation while protecting patient privacy.

WHAT IT’S FOR

The Tel-Aviv Sourasky Medical Center and the Sheba Medical Center, which was recently ranked in the top 10 hospitals in the world by Newsweek, are two of MDClone's clients in Israel.

The startup has also recently expanded to the US, where it is working with Intermountain Healthcare, the Washington University School of Medicine in St Louis and the Regenstrief Institute in Indianapolis.

Announcing the new investment this week, MDClone said it would use the funds to further develop its existing platform, build new products and accelerate growth.

MARKET SNAPSHOT

In a recent study, Start-Up Nation Central identified nearly 540 digital health companies in Israel, where the healthcare system has been paperless for around 20 years now, as reported by MobiHealthNews editor-in-chief Jonah Comstock following a press trip to Tel-Aviv.

Investors are also taking notice, with Theranica, an Israeli company developing advanced electroceuticals for migraine and other prevalent diseases, landing $35m (€31.6m) and Aidoc, provider of AI solutions for radiology, $27m (€24.4m) in Series B funding.

In April, it was announced that Finland and Israel, countries seen as booming hotspots for digital health, would work together to drive advances in the field, starting with a pilot project led by the Helsinki Business Hub and the Israeli Innovation Authority.

ON THE RECORD

Commenting on the raise, Ziv Ofek, founder and chief executive of MDClone - also founder of dbMotion, which was bought by EHR giant Allscripts in 2013, said in a statement:

“MDClone’s solution unlocks data and with the newly added power of aMoon and continued support from OrbiMed and Lightspeed, we can turn data into a real strategic asset to transform care around the world.”

Editor's note, 2 September 2019: This article was updated to reflect the correct name of Start-Up Nation Central.