Israeli Medical Cybersecurity Firm Medigate Secures $15 Million Series A Funding

On January 30, 2019, VCBeat (WeChat official account: vcbeat) learned that Medigate, an Israeli medical device cybersecurity platform, had completed a $15 million Series A financing round. The round was led by US Venture Partners (USVP), with participation from YL Ventures and Blumberg Capital.

This round of funding will be used to enhance the security of professional medical devices, meet the growing demand for an increasing number of clinical networked devices, expand Medigat’s R&D, sales, marketing, and customer teams, and increase Medigat’s market share in the medical device cybersecurity platform sector.

Medigate was founded on September 1, 2017, as an Israeli startup specializing in medical device security. On November 14 of the same year, Medigate completed a $5.35 million seed funding round to develop new products designed to protect networked medical devices from cyberattacks, thereby safeguarding patient safety and privacy. The funding was provided by YL Ventures and Blumberg Capital.

Medigat is a platform that provides cybersecurity and asset management for medical devices. It identifies fingerprints and tags every device on an organization’s clinical network, extending hospital network visibility to all medical devices, thereby ensuring patient privacy and safety. The Medigat security platform can also detect cyberattacks by monitoring traffic between medical devices and the network, and leverages micro-segmentation to block malicious communications in real time, preventing disruptions to device operations.

Medigate has established partnerships with several internet technology companies, including Cisco and Palo Alto Networks. Through its collaboration with Cisco, Medigate integrates its medical device fingerprinting capabilities into the Cisco Identity Services Engine. In partnership with Palo Alto Networks (PAN), Medigate adds user, device, and application information to PAN’s security platform, thereby safeguarding clinical data.

Founded in Silicon Valley, USA, in 1981, USVP is a venture capital firm focused on early-stage investments in the IT and healthcare sectors. Its primary investment areas include enterprise software, IT security, consumer internet, mobile and e-commerce, healthcare, and IT-enabled healthcare services. USVP has invested over $3.8 billion in more than 400 companies, 88 of which are publicly listed.

Headquartered in Silicon Valley, YL Ventures manages $140 million in assets. The firm primarily invests in deep-tech and cybersecurity startups, leveraging its U.S. network to help Israeli startups expand across the United States and globally.

Blumberg Capital, founded in 1991 and headquartered in San Francisco, United States, has team members and advisors in Tel Aviv and New York. As an early-stage venture capital firm, Blumberg Capital boasts extensive experience in partnering with companies across financial services, security, enterprise software and SaaS, digital and social media, as well as mobile and consumer internet sectors. The firm primarily invests in angel rounds, strategic investments, seed rounds, and Series A financing.

(Compiled by Zhang Yaping)