MedCrypt, San Diego, Calif., a leading medical device cybersecurity software provider, has announced a $5.3 million Series A funding round led by Section 32, with participation from Eniac Ventures and Y Combinator. MedCrypt was part of Y Combinator’s winter 2019 batch.
“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,” says MedCrypt founder and CEO, Mike Kijewski.
“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,” Kijewski adds.
The HIPAA Security Rule has been in effect for 14 years, aiming to protect electronic health data, yet a new study from CynergisTek reports the healthcare industry has only managed to achieve 72% compliance with it, leaving a gap that poses a security risk for those who are not yet compliant. The study also reports healthcare is expected to suffer 2-3 times more cyberattacks in 2019 than other industries. This data makes patient safety a critical area of focus.
“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,” adds Vidya Murthy, vice president of operations, MedCrypt. “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 will use the funds to expand its team, adding new members in sales and engineering roles, and further develop its technology. MedCrypt’s security software allows device vendors to use cryptography to secure data traveling between or stored on devices. MedCrypt then provides remote, real-time monitoring to alert medical device vendors of suspicious behavior that may yield potential security threats to their company, devices and patients.
This round brings MedCrypt’s total funds raised to $8.4 million.