MedCrypt will use the funds for the continued delivery of proactive cybersecurity solutions to help medical device manufacturers meet cybersecurity requirements set by the FDA and international regulators
SAN DIEGO, Nov. 1, 2022 /PRNewswire/ -- MedCrypt, Inc., the proactive cybersecurity solution provider for medical devices, today announced its $25M Series B funding round. This round included marquee strategic investments by Intuitive Ventures, Johnson & Johnson Innovation – JJDC, Inc. (JJDC), and participation by institutional investors Section 32, Eniac Ventures, Anzu Partners, and Dolby Family Ventures.
Typically, hospitals average 10 to 15 medical devices per patient bed. There are approximately 10 to 15 million medical devices in U.S. hospitals today. An estimated 25% already are connected, and this is expected to grow to 40%. The integration of connected medical devices across healthcare, in traditional hospital settings as well as evolving home care settings, poses cybersecurity risks. In response, the Food and Drug Administration (FDA) released updates to its premarket cybersecurity guidance and postmarket cybersecurity guidance, which outline recommendations related to the design and maintenance of medical devices. Similarly, other international regulators have been raising the bar on cybersecurity for their respective regions.
"We're past the point of debating the need for improved healthcare cybersecurity and it's exciting to see the industry putting more time and attention into addressing this issue," said Mike Kijewski, MedCrypt CEO. "We're honored to be backed by some of the biggest venture funds in healthcare who understand and support our mission to provide proactive cybersecurity solutions that will help create a more secure future."
MedCrypt will use these funds to scale their cryptography, behavior monitoring, and vulnerability inventory products across various types of medical devices, from small devices like glucose monitors to hospital-based surgical robots. The funds will also be used to expand MedCrypt's engineering team to support the market's exponential increase in demand for medical device cybersecurity products and services.
"With the acceleration of complex medical device ecosystems in hospitals and homes across the United States, and growing expectations of patients, providers, and device manufacturers to meet higher standards for security protection, proactive and focused cybersecurity solutions are urgently needed," said Oliver Keown, MD, managing director of Intuitive Ventures, the independent investing arm of surgical robotics pioneer, Intuitive. "MedCrypt's 'secure by design' product infrastructure will be a critical enabler - and potential standard-setter - for the healthcare industry as stakeholders seek to address the evolving risk profile today. Intuitive Ventures is pleased to provide financial and strategic support to MedCrypt at this pivotal moment as the company enters its next exciting phase of growth."
MedCrypt currently provides enhanced security features and services for seven of the top 10 medical device manufacturers as well as startups and mid-sized companies. This round of funding brings the company's total to date to $34.4 million.
MedCrypt is the first firm to combine cybersecurity technology products with management consulting, decision science, and regulatory strategy that is 100% focused on supporting medical device manufacturers. MedCrypt has raised more than $34.4 million in funding to date with participation from Intuitive Ventures, Eniac Ventures, Section 32, Y Combinator, and more. For more, please visit www.medcrypt.com.
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