MedStack Secures $2.4M Oversubscribed Seed Round to Advance Healthcare App Hosting Platform

On February 27, 2019, VCBeat (WeChat Official Account: vcbeat) learned from foreign media that MedStack, a hosting platform for medical applications, had completed an oversubscribed $2.4 million seed financing round. The round was led by TELUS Ventures, with participation from ScaleUP Ventures and Panache Ventures. Existing investors, including the Ontario Centres of Excellence and several angel investors, also participated in this round. Additionally, TELUS Ventures and ScaleUP Ventures will join MedStack’s board of directors.

It is understood that MedStack, a medical application hosting platform, was founded in Toronto, Canada, in 2015. MedStack’s mission is to drive greater digital innovation in the healthcare sector, leveraging cloud technology to enable anytime, anywhere care delivery through smarter, more timely decision-making and enhanced user experiences.

The company’s primary mission is to help application developers meet privacy compliance requirements through automated systems. These systems generate real-time, auditable security policies and real-time, fully compliant monitoring by leveraging choices of public cloud providers and technology stacks. As of December 2018, more than 50 health technology companies worldwide were using MedStack’s secure cloud tools to host and protect their healthcare applications.

MedStack, built on proven high-security standards, offers flexible compatibility with various applications, databases, and deployment stacks, making it the most secure and flexible application hosting platform in the healthcare industry today. MedStack leverages artificial intelligence, blockchain, and VR/AR technologies, enabling broad applications in chronic disease management, medical workflows, monitoring, and billing.

Balaji Gopalan, founder and CEO of MedStack, said, “Entrepreneurs bringing applications into the healthcare sector are undertaking significant work in technology. Often inspired by their personal experiences, they aim to make healthcare management and service delivery smarter and more convenient.”

Regarding this financing round, Rich Osborn, Executive Partner at TELUS Ventures, stated: “We leverage our extensive expertise to help startups build network growth trajectories within the health and developer communities. We look forward to working with MedStack to advance technology in healthcare and health improvement.”

The proceeds from this financing round will be used to develop distribution channels for MedStack Control, a system recently launched by MedStack. This system enables customers to exercise greater flexibility in managing infrastructure and scaling engineering operations in real-world deployments.

TELUS Ventures is the strategic investment arm of TELUS Corporation (TSX: T, NYSE: TU). Established in 2001, it is one of Canada’s most active corporate venture capital funds. TELUS Ventures focuses on investing in innovative technologies such as health tech, the Internet, artificial intelligence, and cybersecurity.

ScaleUP Ventures, founded in 2016 and headquartered in Toronto, Canada, is a venture capital firm that supports creative entrepreneurs and facilitates investment.

Panache Ventures is a Canadian seed-stage venture capital fund. Led by a team of seasoned operators, Panache brings years of institutional venture capital experience and a robust global network.

Ontario Centres of Excellence (OCE), established in Toronto, Canada, in 1987, is a non-profit organization core-funded by the Ontario Ministry of Research and Innovation.