Tel Aviv, Israel-based medical device security platform Medigate has closed a $15 million Series A fundraising round. The investment was led by US Venture Partners, with additional participation from return backers YL Ventures and Blumberg Capital.
“With regulators appropriately taking a hard look at medical device security and the sheer growth in the number of devices being added to already complex clinical networks, we believe Medigate has a significant opportunity to advance its growth trajectory and capture the market,” Dr. Jonathan Root, general partner at US Venture Partners, said in a statement.
What they do
Medigate builds a platform dedicated to securing networked medical devices that are connected to EHRs, device servers and other enterprise systems. The company works to identify those devices by type and personality and then analyzes their specialized protocols, communications and behaviors.
The security platform also inspects traffic between the identified medical devices and the network and picks up on any suspicious behavior. If the system detects the network is under attack it enables micro-segmentation and realtime blocking of malicious communications, without impacting the operation of device under attack.
What it’s for
Medigate said that it is planning to fuel the growth of its business, specifically through the pursuit of new hires. Within the next year and a half, the security company is looking to triple the size of its R&D, sales, marketing and customer success teams.
Market snapshot
Cybersecurity has lately become been a major focus for healthcare systems increasingly targeted by hackers. Much of this comes down to the difficulties many organizations face when securing their numerous new and legacy medical devices.
As a result, a number of companies have risen to help fortify hospitals’ devices — another Israeli company, Cynerio, announced a $7 million round just few weeks ago. Looking back further, MedCrypt raised $1.9 million in new seed funding last June, while CyberMDX closed a $10 million Series A roughly one month later.
On the record
“U.S. Venture Partners, with its investment focus encompassing both cybersecurity and IT-enabled healthcare is uniquely qualified to understand the complex and pressing security issues that Medigate addresses for both device manufacturers and the healthcare networks that deploy these life-saving devices,” Jonathan Langer, CEO of Medigate, said in a statement. “Working with USVP and our initial investors, YL Ventures and Blumberg Capital, we are poised for rapid expansion by helping our customers confront the unique security risks and management challenges associated with connecting medical devices to clinical networks.”
