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As concerns over medical device security rise, MedCrypt raises $5.3 million

As medical devices move to networked technologies, securing those devices becomes increasingly important.

Regulators, seemingly late to the threat that unsecured medical devices posed, only began requiring protections for medical devices like pacemakers and insulin pumps two years ago, and since then new technology companies have leapt into the breach to begin providing security services for the healthcare industry.

FDA issues new security guidelines so that your pacemaker won’t get hacked

Most recently, MedCrypt, a graduate from the most recent batch of Y Combinator companies, raised $5.3 million in a new round of funding, from investors led by Section 32, the investment firm founded by former Google Ventures partner Bill Maris.

Joining Maris’ firm were previous investors Eniac Ventures and Y Combinator itself.

“Internet-connected medical technology is entering the market at light speed, calling for devices to be secure by design, which leads to a heightened level of patient safety at all times,” said MedCrypt chief executive Mike Kijewski in a statement.

Securing patient data has been a longtime requirement for health technology companies, but both patient records and hospital networks are dangerously vulnerable to cyberattacks.

In 2018, more than 6 million patient records in the U.S. were exposed thanks to network intrusions and cyberattacks, according to the publication Health IT Security. And those were just in the 10 largest security breaches.

The healthcare industry has only managed to achieve 72% compliance with the HIPAA Security Rule for protecting patient data, according to an April report from CynergisTek.

Investors have recognized the problem and are investing more into companies focused on the healthcare market specifically. MedCrypt’s competition for these security dollars include companies like Medigate, which raised $15 million earlier this year.

While Medigate focuses on network security, MedCrypt is focused on securing devices themselves. Both security functions are critical, according to investors.

“With regulators appropriately taking a hard look at medical device security and the sheer growth in the number of devices being added to already complex clinical networks,” there is a significant opportunity for companies tackling medical device security, according to a statement from Dr. Jonathan Root, who has led several IT-enabled healthcare investments for USVP.

CloudBees acquires Electric Cloud to build out its software delivery management platform

CloudBees, the enterprise continuous integration and delivery service (and the biggest contributor to the Jenkins open-source automation server), today announced that it has acquired Electric Cloud, a continuous delivery and automation platform that first launched all the way back in 2002.

The two companies did not disclose the price of the acquisition, but CloudBees has raised a total of $113.2 million while Electric Cloud raised $64.6 million from the likes of Rembrandt Venture Partners, U.S. Venture Partners, RRE Ventures and Next47.

CloudBees plans to integrate Electric Cloud’s application release automation platform into its offerings. Electric Flow’s 110 employees will join CloudBees.

“As of today, we provide customers with best-of-breed CI/CD software from a single vendor, establishing CloudBees as a continuous delivery powerhouse,” said Sacha Labourey, the CEO and co-founder of CloudBees, in today’s announcement. “By combining the strength of CloudBees, Electric Cloud, Jenkins and Jenkins X, CloudBees offers the best CI/CD solution for any application, from classic to Kubernetes, on-premise to cloud, self-managed to self-service.”

Electric Cloud offers its users a number of tools for automating their release pipelines and managing the application life cycle afterward.

“We are looking forward to joining CloudBees and executing on our shared goal of helping customers build software that matters,” said Carmine Napolitano, CEO, Electric Cloud. “The combination of CloudBees’ industry-leading continuous integration and continuous delivery platform, along with Electric Cloud’s industry-leading application release orchestration solution, gives our customers the best foundation for releasing apps at any speed the business demands.”

As CloudBees CPO Christina Noren noted during her keynote at CloudBees’ developer conference today, the company’s customers are getting more sophisticated in their DevOps platforms, but they are starting to run into new problems now that they’ve reached this point.

“What we’re seeing is that these customers have disconnected and fragmented islands of information,” she said. “There’s the view that each development team has […] and there’s not a common language, there’s not a common data model, and there’s not an end-to-end process that unites from left to right, top to bottom.” This kind of integrated system is what CloudBees is building toward (and that competitors like GitLab would argue they already offer). Today’s announcement marks a first step into this direction toward building a full software delivery management platform, though others are likely to follow.

During his company’s developer conference, Labourey also today noted that CloudBees will profit from Electric Cloud’s longstanding expertise in continuous delivery and that the acquisition will turn CloudBees into a “DevOps powerhouse.”

Today’s announcement follows CloudBees’ acquisition of CI/CD tool CodeShip last year. As of now, CodeShip remains a standalone product in the company’s lineup. It’ll be interesting to see how CloudBees will integrate Electric Cloud’s products to build a more integrated system.

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