MedCrypt, one of the leaders in providing cybersecurity to medical devices received $5.3 million as a part of its Series A funding.
“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,” said 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.”
The HIPAA act that has been in effect for almost 1.5 decades dictates that all medical stakeholders are supposed to be 100 % compliant when it comes to securing patient health information. However, according to a recent report, only 72% of the medical fraternity has been able to achieve watertight safety of patient health data. This poses a huge security threat for critical patient data wherein the remainder of 28% are highly vulnerable to a data breach. The same study also confirms that healthcare is 2-3 times more prone to cyber attacks than other industries in 2019. Hence, hospitals and caregivers should escalate the safeguarding of patient data, now.
“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,” said 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 cyber attacks are much more real and likely.”
MedCrypt will be investing these funds in expanding its sales and marketing teams and will focus on the advancement of its platform. The company’s software facilitates vendors with cryptography to secure data moving in between two devices or at stored locations. This data can be monitored real-time and remotely by stakeholders who get alerted upon suspected malicious activity happening in or around this data.
The funding round is led by –
- Section 32
- Eniac Ventures
- Y Combinator
This brings the company’s total funding to $8.4 million. MedCrypt was a part of Y Combinator for the latter’s 2019 chapter.