WannaCry was one of the most massive and recent cybersecurity attacks on hospitals, and it revealed how vulnerable some of our most valuable institutions are. The need to protect hospitals critical assets, like patient information and valuable data, is extremely important, and hospitals’ IT networks run on unmonitored and unprotected connected medical devices. However, CyberMDX is changing that with its network security solution MDefend. This product is a non-intrusive, multilayered approach that protects hospitals’ critical assets. This cybersecurity company provides unparalleled insight into medical device vulnerabilities through AI and Deep Packet Inspection. CyberMDX is a holistic solution that detects security problems and then fixes it.
AlleyWatch spoke with CEO and cofounder Amir Magner to learn about the importance of medical cyber security and what attracted investors to this one-year-old startup.
Who were your investors and how much did you raise?
We raised $10M dollars in a Series A funding round. Funding was led by Pitango Venture Capital.
Tell us about the service that CyberMDX offers.
CyberMDX counters and prevents growing cyber threats against hospitals’ medical devices, ensuring its critical assets operational continuity as well as patient and data safety.
We are not only solving the technical problem of bringing visibility and safety into medical devices, but we are providing a business solution by foreseeing and preventing attacks against them.
Our network security solution, MDefend, is a non-intrusive solution, specifically designed for providing visibility and protection of hospitals’ critical assets. MDefend delivers a multi-layered approach that includes self-learning artificial intelligence technology, medical device vulnerabilities research, and defensive and offensive cyber capabilities.
The expedited growth of connected medical devices poses exceptional challenges for hospital network security. Connected devices have become an integral part of hospitals’ IT networks, yet they are not monitored and remain unprotected. Recent massive cyber-attacks such as OrangeWorm, NotPetya, and WannaCry illustrate the challenges and high-risk exposure for hospitals.
We passionately believe in the significance of our work, addressing the arising threat for healthcare provider networks. Cybersecurity for medical devices is an absolute necessity in order to enable hospitals to focus on their main and most important mission — treating and saving human lives.
What sort of benefits do hackers see from obtaining medical data?
The list of adversaries who hack into medical devices ranges greatly and illustrates just how expansive the issue is. Hackers are looking to instill:
- Financial crime
- Ransomware on medical devices
- Extortion on medical devices
- Steal high-value data (that include patient data)
- Cause harm (from terrorists or “hacktivists”)
- Hospital shutdowns
- Compromised patient care
- Exploit critical infrastructure
- Tarnish brand
How is CyberMDX different?
CyberMDX brings together digital health, medical devices, and cybersecurity into a solution that addresses unique challenges that hospitals face today by protecting their connected medical devices.
With this in mind, the product is differentiated from its competitors for several reasons:
The Use of AI and Deep Packet Inspection (DPI) symbiosis to create unmatched visibility. This enables clients to identify and analyze devices typically unseen with current IT and security solutions.
CyberMDX’s technology is coupled with expert cyber researchers and “white-hat” hackers. On a daily basis, this team researchers medical device vulnerabilities, in an effort to create practical improvements and new insights.
A tailored solution to healthcare and clinical networks: CyberMDX’s solution speaks the language of healthcare IT teams and their workflows. As opposed to generic IoT security solutions, CyberMDX’s solution was built from the ground up for the healthcare industry.
Automatic, zero touch and non-intrusive, CyberMDX offers an integrative solution that can be easily implemented within existing cyber and IT solutions.
A holistic solution: CyberMDX not only identifies a security problem but also solves it – from discovery and detection, to risk assessment and prevention.
What market does CyberMDX target and how big is it?
We target hospitals and healthcare providers. The connected medical device market is disruptive, changing the landscape of the healthcare industry, and growing rapidly.
What’s your business model?
It is a software license model.
What was the funding process like?
Before our funding round, we were overwhelmed with venture capitalists that approached us and it was important for us to find the right partner. We were looking for a VC that shared our vision and passion to address a serious security challenge in the healthcare industry.
What are the biggest challenges that you faced while raising capital?
The biggest challenge we faced was looking for the unique investor and the right fit. We had a very specific vision when looking for an investor – one that not only understands healthcare but also cybersecurity. We also wanted a long-term partner who had experience growing successful, global companies.
What factors about your business led your investors to write the check?
Our investors recognized the growing threat that hospitals face today and realized that generic IoT security solutions are not sufficient. They appreciated our 100% focus on healthcare cybersecurity.
They were also impressed with the multi-disciplinary team comprised of device protocols experts, enterprise software professionals, and academic leaders, with expertise in artificial intelligence, medical device vulnerabilities research, and defensive and offensive cyber capabilities.
What are the milestones you plan to achieve in the next six months?
We will continue our market growth, expanding into new markets, as well as growing the CyberMDX team.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Stay lean and focused and listen to the market’s need while building your product. Keep your passion and vision as a driving force!
Where do you see the company going now over the near term?
CyberMDX plans on becoming the world’s leading cyber solution for connected healthcare devices.
What’s your favorite restaurant in the city?
Our go-to place in NYC near our office in Nomad is Ajisen Ramen. Nothing beats their Ramen, especially on a cold winter day!