Medigate Raises $30 Million in Series B Financing

Medigate, the leader in IoT and medical device security and asset management, has completed a $30 million Series B round led by new investor Partech, a global technology investor respected for its track record in scaling technology innovators globally. Existing investors YL Ventures, U.S. Venture Partners (USVP) and Blumberg Capital also participated in the round and were joined by Maor Investments. This brings Medigate’s total funding to $50 million, including a Series A round completed in 2019.
 
Medigate will use the investment to execute its vision of becoming healthcare’s security and clinical analytics company. 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. Providing a single, comprehensive solution for them will not only help reinforce their security stance from the core to the edge, it will provide analytics that will help drive operational efficiencies, organizational effectiveness, reduction in CapEx and OpEx, improve patient experiences, and much 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 percent 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.
 
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 testament to their vision of protecting every healthcare organization from cyberattacks.”
 
“Medigate’s ability to deliver a single source of device truth for executives across a healthcare organization has advanced its growth trajectory,” said Jacques Benkoski, partner at USVP. “We are excited to help with their global advancement and adoption.”
 
“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.