Connected medical device security platform Medigate completed a $30 million Series B financing round, bringing its total funding to $50 million, including a Series A round completed in 2019.
Partech, a technology investor, led the round with participation YL Ventures, U.S. Venture Partners (USVP), Blumberg Capital, Maor Investments.
Medigate will use the new funds to develop further its IoT and medical device security and asset management and clinical analytics platform. “As the volume and velocity of data generated from IoT and medical devices surges, healthcare organizations are expanding their digital strategies beyond their walls to include technology like wearable devices designed for patient monitoring and mobile devices used for telehealth,” the company said.
According to the company, the explosion of connected devices is dramatically increasing cybersecurity and medical device management challenges for healthcare delivery organizations.
Gartner has forecasted that the number of connected devices will grow to 25 billion by 2021. According to Healthcare Informatics Research, more than 40% of those will be used in the healthcare industry by the end of this year to improve patient outcomes.
“Medigate’s innovative approach to device visibility, security and management is giving hospitals confidence they can secure and manage the devices they’re connecting to their network,” said Jean Sini, general partner at Partech. “Their growth over the last two years is evidence that securing unmanaged devices is top of mind for healthcare leaders.”
Healthcare Security software companies have over $350 million in the last five years, according to Mercom data. Recently, CyberMDX, a provider of AI-enabled security solutions for connected medical devices, secured $20 million in funding, bringing $30 million to date. The financing was led by Sham (Relyens group), with participation from existing investors Pitango Venture Capital and Qure Ventures.