Today (Tuesday), Israeli startup Medigate, which develops IoT and medical device cyber-security and asset management technologies, announced a $30 million Series B funding round. The investment was led by new investor Partech, with existing investors YL Ventures, U.S. Venture Partners (USVP), Maor Investments and Blumberg Capital also participating in the round.
Medigate enables IT, info security, biomedical and clinical engineering teams to identify, monitor and secure every medical device on the clinical network. Essentially, helping healthcare organizations continuously discover, identify, assess and secure all Internet of Medical Things (IoMT), IoT, operational technology (OT) and IT network connected devices.
While both technological advancement and COVID-19 have accelerated 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. Medigate’s platform provides a one-stop-shop solution for securing the various IoT and medical devices, while also producing insight to help drive operational efficiencies, organizational effectiveness, reduction in CapEx and OpEx, most importantly improve patient care, and more.
“Partech is a very sophisticated technology investor. With their backing, we will be able to quickly expand to help healthcare organizations around the world experience the same ROI as those in the United States,” said Jonathan Langer, CEO and Co-Founder of Medigate. “We are very appreciative of the continued support we receive from our investors at YL Ventures, USVP and Blumberg Capital and are excited to add Partech and Maor Investments to our team as we enter in the next phase of our growth.”
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. The explosion of connected devices is dramatically increasing cybersecurity and medical device management challenges for healthcare delivery organizations.
“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.”
Medigate’s solution addresses patient safety and privacy by automatically locating, identifying and managing the security posture of all devices connected to the network, in addition to powering clinical engineering with the device data they’ve never had available before to manage their fleet of medical devices. Medigate has continued its tremendous growth by demonstrating how comprehensive device data leads to new ROI and cost savings in healthcare delivery organizations around the world, from the largest health systems to specialty hospitals.
“We’ve believed from the beginning that Medigate’s unique approach to their solution and partner ecosystem has and will continue to position them as the solution of choice for healthcare, validated by its rapid adoption by leading health systems and hospitals across the United States,” said Bruce Taragin, managing director at Blumberg Capital.
As proof of Medigate’s impact on the industry, the company was recently named a winner of the SINET 16 Innovator Award, where a panel of dozens of leading industry experts selected the 16 most innovative and compelling companies from more than one hundred emerging cybersecurity providers. This recognition follows a strong 2020 where Medigate was named as a “Market Leader” in Forrester’s New Wave Report, one of Forbes’ “Top 20 IoT Startups to Watch” and the winner of Frost and Sullivan’s “Enabling Technology Leadership Award for Medical Device Security.”
Yoav Leitersdorf, managing partner at YL Ventures, shared, “Medigate is powered by an extraordinary team that has outperformed even our highest expectations. It’s been a privilege to work alongside them since their founding three years ago and we are thrilled to continue to be a part of their journey. This latest milestone is a testament to their vision of protecting every healthcare organization from cyberattacks.”
Medigate was founded in 2017 by CEO Jonathan Langer, VP of R&D Itay Kirshenbaum, and VP of Product Pini Pinhasov. The company’s headquarters are based in Tel Aviv. Including the current round and a Series A round closed in 2019, the company has raised a total of $50 million to-date.