Health IT

Cybersecurity solutions provider Cynerio nabs $30M in new funding

Cynerio, a provider of cybersecurity and asset management solutions, raised $30 million in a Series B funding round. The company will use the capital to expand operations globally and grow sales and marketing efforts.

Amid growing healthcare cybersecurity concerns, a company offering an internet of things security platform has raised millions.

Cynerio secured $30 million in a series B funding round that closed last week and was led by ALIVE Israel HealthTech Fund. Existing investors Accelmed, RDC and MTIP also participated in the funding round. Though the company declined to disclose its valuation, it has raised $40 million in total funding so far.

The company’s platform helps health systems automatically detect every connected asset or medical device on their network and then manage security through threat detection and mitigation tools, said Leon Lerman, co-founder and CEO of Cynerio, in an email.

The new funding will be used to expand operations globally, grow sales and marketing efforts and form additional strategic partnerships with solution providers, Lerman said.

Further, the company will use the new funds to bolster its suite of Zero Trust solutions.

Cybersecurity has emerged as a key issue for healthcare organizations, especially amid the Covid-19 pandemic. Of the nearly 600 healthcare data breaches in 2020 — a 55% jump from the year prior — hacking and IT incidents led to more than half (67.3%), a February report from Bitglass shows.

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The trend appears to be continuing this year, with several high-profile health systems, like UPMC, Nebraska Medicine and Scripps Health already having faced cyberattacks.

Survey results, released last November by the Healthcare Information and Management Systems Society, show the wide-ranging impact of these attacks. About 28% of the 168 healthcare cybersecurity professionals polled said that the incidents disrupted information technology operations, 27% said it affected business operations and 20% said it resulted in a monetary loss, such as wire fraud or extortion.

In this environment, cybersecurity solutions have gained new significance. There are several healthcare cybersecurity vendors in the market, including Datica, Medcrypt and ClearData, making it a crowded space.

But Cynerio sets itself apart by providing an end-to-end solution for hospitals and health systems, Lerman said.

“We help customers substantially decrease organizational risk within weeks, provide the largest variety of unique security tools that cover all threat vectors, and are the only company that provides tools for vendor access, cloud access, deception and forensics tailored for healthcare,” he said.

Picture: Feodora Chiosea, Getty Images