MedCrypt, a medical device cybersecurity solution provider, has announced that it has raised $25M in Series B funding. Intuitive Ventures, Johnson & Johnson Innovation and JJDC, Inc led the round with participation from Eniac Ventures, Section 32, Anzu Partners and Dolby Family Ventures. This new funding round brings the company’s total funding to $34.4M and points to an ongoing need for securing devices at the network edge.
The company says the funds will expand MedCrypt’s behavior monitoring, cryptography and vulnerability inventory products across different medical devices. These include small devices such as glucose monitors to hospital-based surgical robots. Besides the former use, they will also allocate the funds towards MedCrypt’s engineering team growth to keep up with increasing consumer demand for medical device cybersecurity products and services.
Medical device ecosystems are becoming increasingly complex, with more IoT devices being used and connecting to each other and to hospital networks. In recent years, clinical machinery has become more computerized and now contains more features and data. All monitors, infusion pumps, ventilators, CT and MRI scanners hold important patient data that could potentially get hacked or tampered with. Further, many devices link to IT systems and outdated technologies that have their own set of security risks.
This means that if a device is breached, this type of hack could potentially take out meaningful portions of a hospital’s medical network. In response, regulators like the FDA have updated their cybersecurity guidance documents.
“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,” stated Mike Kijewski, CEO of MedCrypt. “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.”
With the rise in cybersecurity attacks and increased regulatory guidelines, medical device manufacturers now seek more robust cybersecurity solutions. MedCrypt says it plans to be at the forefront of this evolving industry, developing products that help manufacturers better protect their devices from cyberattacks.
“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,” stated Oliver Keown, MD, managing director of Intuitive Ventures, the independent investing arm of the surgical robotics company, Intuitive.
healthcare | hospital | IoT | Johnson & Johnson | MedCrypt | venture capital