New York-based tech startup Cynerio bags $30M in funding to secure mission-critical medical and IoT devices in hospitals and health systems
The average American home is filled with the Internet of Things (IoT) devices, including thermostats, cameras, doorbells, sprinkler systems, Smart TVs, kitchen appliances, and more. But that’s pale in comparison to the number of IoT devices in medical and hospital settings.
Today, a wide range of medical devices are now being interconnected, including blood pressure, pulse, respiration, and temperature monitoring systems that can be centrally accessed from nursing stations. However, a growing number of connected medical devices in hospital networks has introduced a new breed of threats that healthcare organizations cannot address with IT cybersecurity solutions. As we reported in March, for example, hackers breached hospital surveillance cameras exposing the security risks of connected devices.
Now, one New York-based startup wants to change that. Cynerio is a one-stop-shop healthcare IoT security platform that secures mission-critical medical and IoT devices in hospitals and health systems.
Today, Cynerio announced it has secured $30 million in Series B funding. The investment round was led by ALIVE Israel HealthTech Fund, Israel’s pioneering HealthTech investment fund, with participation from a group of U.S. and international syndicate of investors.
Cynerio will use the funding proceeds to expand its channel program, forming strategic partnerships with leading solution providers and expanding its clinically intelligent toolbox of preemptive and proactive Zero Trust solutions into a full-service, responsive security platform.
The funding will further support the acceleration of technological development and enhance support to Cynerio’s existing customers while reinforcing its leading position in North America as well as its global expansion.
Founded in 2017 by Daniel Brodie and Leon Lerman, Cynerio’s clinically intelligent platform automates asset discovery and risk reduction, and takes the evolution of IoT security one step beyond visibility, providing healthcare teams with the ability to not just identify more problems on their network, but to actually solve them and secure their organization to ensure patient safety, data integrity and operational continuity.
“It’s critical to have partners who intimately understand the healthcare industry and its exceptional needs, especially now with the unprecedented pressures COVID-19 has introduced. Cynerio is extremely grateful for the continued faith and support of Elron, Accelmed and MTIP,” said Leon Lerman, CEO and co-founder of Cynerio. “With the additional backing of ALIVE and their expertise in the US healthcare system, we’ll be able to continue advancing our product offerings to support healthcare providers, with unparalleled threat detection, preemptive security, and response capabilities, while alleviating healthcare’s coinciding operational challenges.”
Cynerio grew substantially in 2020, concluding the year with a 300% year-over-year revenue increase. The company was recognized as the Industry Leader in Forrester’s Connected Medical Device Security, Q2 Report and named a Gartner Cool Vendor in the 2020 Security Report, further highlighting the strength of Cynerio’s solutions and its unique approach to Healthcare IoT cybersecurity.
“We’re very excited to lead this investment round in Cynerio, the industry leader,” said Dudi Klein, Managing Partner at ALIVE. “As a team of veteran healthcare leaders, we know the importance of healthcare cybersecurity first-hand. Cynerio’s exceptional team has created an intuitive, cost-effective and high-quality suite of solutions that healthcare professionals can rely on to protect their patients, staff, and business integrity with confidence.”
As COVID-19 continues to strain the global healthcare industry, barrages of cyberattacks accentuate the need for robust healthcare-specific security and automated asset management solutions. To meet and exceed those needs, Cynerio scaled from a security solution focused only on medical devices to a full-suite, one-stop-shop Healthcare IoT cybersecurity platform that covers every threat vector on every connected device.