MedCrypt Secures $5.3M Series A Funding to Advance Medical Device Data Protection Platform

VCBeat (WeChat ID: vcbeat) has learned that MedCrypt, a medical technology company, recently completed a $5.3 million Series A financing round. The round was led by Section 32, with participation from Eniac Ventures and Y Combinator. The funds will be used to expand the company’s sales and R&D teams and to continue developing its data protection system for medical devices.

Since its inception, MedCrypt has completed four rounds of financing, raising a total of $8.4 million. In September 2016, the company closed a $1 million seed round led by Safeguard Scientifics; in June 2018, it closed a $1.9 million seed round led by Eniac Ventures.

MedCrypt, founded in 2016 and headquartered in California, USA, is a company that provides data security services for medical devices. Its SaaS-based data protection system for medical devices prevents hackers from attacking these devices and avoids unauthorized access. The system is compatible with all medical devices equipped with computer processors, such as medical imaging equipment, pacemakers, surgical robots, and implantable devices.

With the advancement of connected medical devices, hospitals and health systems are becoming increasingly reliant on them. Unsecured medical device data poses a threat to patient safety. Hackers can compromise medical devices and send malicious commands, potentially causing patient injury or even death.

Vidya Murthy, Vice President of Operations at MedCrypt, stated in a press release: “Patient data security has long been a cause for concern. However, the health technology industry lacks sufficient awareness regarding the cybersecurity of medical devices. Research indicates that cyberattacks can lead to cardiac arrest in patients, increasing the mortality rate to 13.3% and delaying treatment by four minutes.”

MedCrypt’s data protection system for medical devices enables hospitals and medical device manufacturers to authenticate users, provide encryption services for medical data, physician signatures, and patient prescriptions, and monitor physicians’ operational activities on medical devices. The system flags anomalous user behavior, ensuring that medical devices will not execute hackers’ commands even if compromised. Medical device manufacturers, hospitals, and patients alike can benefit from this system.

It is worth noting that many cybersecurity companies are dedicated to protecting marketed medical devices from attacks. In contrast, MedCrypt focuses on developing security solutions for medical devices before they reach the market by signing early-stage agreements with medical device manufacturers.

Section 32, founded in May 2017 and headquartered in California, is a venture capital firm established by Bill Maris.

Eniac Ventures, established in 2010, is a venture capital firm headquartered in New York, USA, specializing in seed-stage financing for startups.

Y Combinator, founded on March 1, 2005, is a renowned U.S.-based startup incubator dedicated to supporting early-stage companies and providing them with entrepreneurial guidance. The firm invested $120 million in Airbnb, the home-rental platform. On August 15, 2018, it announced its official entry into China.

(Compiled by Jiao Yanli)