MedCrypt raises $1.9 million to accelerate commercial deployment of cryptographically embedded cybersecurity software for medical device makers
MedCrypt, a medical device cybersecurity technology provider, has secured $1.9 million in new funding to accelerate the commercial deployment of cryptographically embedded cybersecurity software for medical device makers. The seed round was led by Eniac Ventures, with participation from Sway Ventures, Nex Cubed, Oronoco Investments and Friedman BioVentures. Some of MedCrypt customers include Reflexion Medical, QuiO and more. The company has raised a total of $2.9 million in total funding to date.
Founded in 2016 by Brett Hemenway, Eric Pancoast, and Mike Kijewski, MedCrypt is a medical device cybersecurity technology provider that uses cryptography to protect data sent to and from medical devices. The company provides data security as a service to medical device OEMs. From medical imaging device, to implantable devices like pacemakers, MedCrypt ensures that devices act only on instructions from trusted sources. MedCrypt’s security software ensures data delivered to devices comes from a trusted source and provides remote, real-time monitoring to alert vendors of suspicious behaviors that may yield potential security threats to their company, devices and users.
“The FDA is cracking down on medical device cybersecurity by releasing more robust regulations by which medical device vendors and healthcare delivery organizations are required to abide,” says Mike Kijewski, CEO and co-founder, MedCrypt. “Our solution lets these organizations protect their devices – and patients – with just a few lines of code. We’re thrilled to gain additional funding and support to help accelerate our technology.”
“Cyber threats are an exponentially increasing problem that is threatening businesses, governments, households and, in healthcare, even lives,” said Tim Young, founding general partner at Eniac Ventures. “MedCrypt has already set itself apart with a seasoned technical team and proprietary technology that is helping the largest medical device makers in the world protect their devices and the underlying users. Our team is excited to support Mike Kijewski and Eric Pancost in continuing to build out MedCrypt as the most comprehensive security layer for healthcare IT.”
Cyber crime damage costs are projected to reach $6 trillion annually by year 2021, and last year the healthcare industry reported more than 447 breaches. MedCrypt’s cryptographically embedded security software helps medical device vendors build products that are Secure By Design and monitor behavior of these devices once they are deployed. MedCrypt-enabled devices will be ensured they meet the FDA cybersecurity regulations and will provide the hospital or medical facility security team with a more robust solution to encrypt, monitor and protect in real-time.
This additional financing brings the company’s total to-date funding to $3 million. Existing additional investors include Safeguard Scientifics and LRVHealth. MedCrypt recently won the HIMSS Venture Connect startup contest, held at HIMSS18 earlier this year. The company was also named a San Diego Venture Group 2018 “Cool Company.”