MedCrypt, a cybersecurity solution provider for medical device manufacturers, announced additional funding from Dexcom Ventures. This extension follows MedCrypt’s Series B funding round in November 2022 with investments from Intuitive Ventures, Johnson & Johnson Innovation – JJDC, Inc. (JJDC), among others, bringing the company’s funding to date to $36.4 million.
Dexcom Ventures, the corporate venture capital arm of Dexcom.
“Diabetes care management is one of the main categories of healthcare innovation that is highly dependent on connectivity; consequently, it is one of the main categories heavily scrutinized by the FDA,” says Mike Kijewski, CEO of MedCrypt. “The promise of software in a device can only be achieved when the cybersecurity posture of the device is secure and effective in the threat landscape. MedCrypt has built a cybersecurity platform for all medical devices – for things as small as pacemakers and insulin pumps or as large as surgical robots—and we are honored to be backed by Dexcom Ventures as we continue our push for better device security.”
The global wearable medical device market size is currently valued at $21.3 billion and is expected to grow 28% by 2030. Cybersecurity remains one of the biggest hurdles for connected devices across all areas of healthcare, including the diabetes industry. Dexcom Ventures makes investments to ensure security and reliability in the software and connectivity of interoperable medical devices.
“As a market leader in diabetes care management, Dexcom understands the value of software and connectivity when innovating the patient experience,” says Naomi Schwartz, senior director of quality and safety at MedCrypt. Her background includes working at the FDA to evaluate software and cybersecurity for an automated insulin delivery (AID) system and developing Class II regulatory pathways for the three major components of AID systems.
“We are proud and excited to invest in MedCrypt as they are leading the charge in building cybersecurity technologies and infrastructure for life-saving medical devices,” says Steve Pacelli, executive vice president, and managing director, Dexcom Ventures. “Cybersecurity has always been a priority for Dexcom and we have seen it become a top priority for healthcare technology companies across many care modalities. We’re excited to see MedCrypt introduce a disruptive solution for these markets.”
In 2022, MedCrypt deployed partnerships with 18 new medical device manufacturers committed to improving cybersecurity in healthtech. These additional funds will be used to grow MedCrypt’s engineering team to support this growing demand for cybersecurity in devices—across all products—remaining aligned with requirements set by the FDA and the cybersecurity provisions in the latest Consolidated Appropriations Act, 2023.
MedCrypt currently provides enhanced security products and services for several medical device manufacturers as well as startups and mid-sized companies.