A cybersecurity startup out of New York City has brought in a $10 million Series A round led by Pitango Venture Capital and with participation from OurCrowd Qure.
The company, CyberMDX, is a cybersecurity provider that delivers threat prevention for medical devices and clinical networks. For instance, its MDefend solution utilizes AI technology, vulnerabilities research and defensive and offensive cyberthreat capabilities.
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CyberMDX was founded by Amir Magner (who serves as CEO) and Moti Shniberg.
In a phone interview, Magner explained that medical devices in today’s healthcare environment are quite vulnerable to potential attacks. This puts patient data as well as patient safety at risk.
Thus, the New York City startup works on risk assessment and preventing cyberattacks before they happen. The ultimate goal, Magner said, is mitigating the risk of threats. “What we are creating is a holistic solution,” he said.
CyberMDX’s primary clients are healthcare providers and hospitals.
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The company plans to use the $10 million to launch into new markets, Magner noted. It also wants to expand its team in the United States.
As for working with Pitango and OurCrowd Qure, Magner said the investors were the right partners for CyberMDX due to the focus all three organizations share.
“Both of them really share the same vision,” he said. “It was the right combination.”
Pitango is a venture capital fund based in Herzliya, Israel. OurCrowd Qure, which launched in 2016, is the digital health fund of OurCrowd, an Israeli equity crowdfunding platform. The fund has made numerous investments since its inception.
Via email, OurCrowd Qure managing partner Dr. Yossi Bahagon commented on the CyberMDX investment:
At OurCrowd Qure, we believe CyberMDX is a lifesaving solution that will be mandatory for every healthcare system of the future. With medical devices, it’s not just about the risk of your medical data being breached. Imagine a patient comes in for a diagnostic CAT scan and ends up with cancer due to the fact that a hacker changed the machine’s radiation dosage. Imagine all ventilatory machines in the ICU suddenly stopped working. Now think CyberMDX.
Another cybersecurity startup, MedCrypt, also recently secured funding. The company, which provides medical device cybersecurity technology, raised $1.9 million in a round led by Eniac Ventures. Nex Cubed, Oronoco Investments, Sway Ventures and Friedman BioVentures also participated.
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