MedCrypt, a company based in Southern California, has raised a $5.3 million Series A funding round led by Section 32. Participation also came from Eniac Ventures and Y Combinator.
The startup was part of Y Combinator’s winter 2019 cohort.
Founded in 2016, MedCrypt brings regulatory mandated cybersecurity practices to medical device vendors. Its offering can be used for medical imaging devices, pacemakers and surgical robots, among other devices.
Through its software, the company lets device vendors use cryptography to secure data traveling between devices or stored on devices. It also provides remote, real-time monitoring to inform vendors of any suspicious behavior.
In a statement, MedCrypt CEO Mike Kijewski said:
Last October, the FDA released a major update to its premarket cybersecurity guidance for medical devices, publishing guidelines that line up just about perfectly with the solution we began developing three years ago. Internet-connected medical technology is entering the market at light speed, calling for devices to be secure by design, which leads to a heightened level of patient safety at all times. We’re thrilled to see continued support from various groups in the industry, from the government to healthcare institutions and device vendors, along with support from our partners to help us further develop our technology and expand our team.
With the new $5.3 million, the company will add new employees to its sales and engineering teams, as well as advance its technology.
In a news release, MedCrypt said the Series A round brings its total funding to $8.4 million. That amount includes a $1.9 million seed round it secured last year. Eniac Ventures led that round, and Nex Cubed, Oronoco Investments, Sway Ventures and Friedman BioVentures participated.
MedCrypt isn’t the only entity tackling medical device cybersecurity.
Earlier this year, Medigate, another player in the space, raised $15 million in a Series A round led by U.S. Venture Partners and with participation from YL Ventures and Blumberg Capital. The company offers a medical device security and asset management platform.
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