Medical device cybersecurity group MedCrypt said yesterday it raised $5.3 million in a Series A round.
The round was led by Section 32 and joined by Eniac Ventures and Y Combinator, the incubator that housed San Diego-based MedCrypt in its winter 2019 batch, the company said.
MedCrypt said that it will use funds to expand its sales and engineering teams and to further develop its security software platform. The company’s software platform is designed to allow device vendors to use cryptography to secure data traveling between and stored on devices.
“Last October, the FDA released a major update to its premarket cybersecurity guidance for medical devices, publishing guidelines that line up just about perfectly with the solution we began developing three years ago. 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. 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,” founder & CEO Mike Kijewski said in a prepared statement.
MedCrypt said that it provides remote, real-time monitoring to alert medical device vendors of suspicious behavior and possible security threats to devices, patients and the company.
“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. 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,” MedCrypt Vidya Murthy, vice president of operations, MedCrypt. ”
Last June, MedCrypt said that it raised $1.9 million in a seed round of financing to help support its medtech-specific embedded cybersecurity software.