CyberMDX, a connected medical device and clinical network security firm, announced today that it has closed $10 million in Series A funding. The financing round was led by Pitango Venture Capital, with additional backing from OurCrowd Qure.
The company’s MDefend software product is deployed to a provider’s network, CyberMDX CEO Amir Magner told MobiHealthNews. The tool is non-intrusive, and doesn’t apply any software within the protected devices themselves.
This kind of security is becoming especially important in the age of OrangeWorm, NotPetya, WannaCry, and other high-profile healthcare cyberattacks, he said.
“The medical devices market is really growing very fast, and it definitely enables the healthcare providers to deal with great challenges,” he said. “While it’s growing very fast, medical devices are really very vulnerable, and they are very critical [because] at the end of the day they are used for patient care and saving the lives of those patients.”
On top of securing devices and networks, Magner said that the company is building a “holistic solution” that will automatically detect, alert, and protect devices that enter a system’s network. These capabilities are powered by an AI-based component that uses machine learning to contain breaches and surface alerts to security staff.
“CyberMDX’s solution is well timed with the rapidly increasing threats hospitals face today. Existing security and IoT solutions are not enough to protect the dynamic healthcare cyber threat landscape,” Rami Kalish, managing general partner and cofounder at Pitango, said in a statement. “We believe the market will continue to see a shift towards specialized cybersecurity solutions that address hospitals’ unique needs. CyberMDX delivers a powerful solution for the industry, and we are excited to collaborate with and support them as they continue to grow the company.”
The company will be using the new funding to support its product and R&D teams, scale its product, and grow its presence in North America while expanding to new markets, Magner said. Currently, its leadership is comprised of machine learning and medical device specialists, as well as by veterans of Israel’s intelligence service, according to a statement.
CyberMDX’s Series A announcement comes just a few weeks after news of a seed funding round from another medical device security-focused firm, MedCrypt. In a conversation with MobiHealthNews in June, the latter company’s CEO and cofounder, Mike Kijewski, shared Magner’s assertion that cybersecurity is becoming a forefront issue for the industry.