MedCrypt, a cybersecurity solutions provider for medical devices, announced its $25 million Series B funding round.
This round included marquee strategic investments by Intuitive Ventures, Johnson & Johnson Innovation – JJDC, Inc. (JJDC), and participation by institutional investors Section 32, Eniac Ventures, Anzu Partners, and Dolby Family Ventures.
MedCrypt will use these funds to scale their cryptography, behavior monitoring, and vulnerability inventory products across various types of medical devices, from small devices like glucose monitors to hospital-based surgical robots.
Typically, hospitals average 10 to 15 medical devices per patient bed. There are approximately 10 to 15 million medical devices in U.S. hospitals today. An estimated 25% already are connected, and this is expected to grow to 40%. The integration of connected medical devices across healthcare, in traditional hospital settings as well as evolving home care settings, poses cybersecurity risks.
In response, the Food and Drug Administration (FDA) released updates to its premarket cybersecurity guidance and postmarket cybersecurity guidance, which outline recommendations related to the design and maintenance of medical devices. Similarly, other international regulators have been raising the bar on cybersecurity for their respective regions.
“We’re past the point of debating the need for improved healthcare cybersecurity and it’s exciting to see the industry putting more time and attention into addressing this issue,” says Mike Kijewski, MedCrypt CEO. “We’re honored to be backed by some of the biggest venture funds in healthcare who understand and support our mission to provide proactive cybersecurity solutions that will help create a more secure future.”
Money from this funding round will also be used to expand MedCrypt’s engineering team to support the market’s exponential increase in demand for medical device cybersecurity products and services, the company says.
“With the acceleration of complex medical device ecosystems in hospitals and homes across the United States, and growing expectations of patients, providers, and device manufacturers to meet higher standards for security protection, proactive and focused cybersecurity solutions are urgently needed,” says Oliver Keown, MD, managing director of Intuitive Ventures, the independent investing arm of surgical robotics pioneer, Intuitive. “MedCrypt’s ‘secure by design’ product infrastructure will be a critical enabler – and potential standard-setter – for the healthcare industry as stakeholders seek to address the evolving risk profile today. Intuitive Ventures is pleased to provide financial and strategic support to MedCrypt at this pivotal moment as the company enters its next exciting phase of growth.”
MedCrypt currently provides enhanced security features and services for several top 10 medical device manufacturers as well as startups and mid-sized companies. This round of funding brings the company’s total to date to $34.4 million.
