MedStack (Dreamit HealthTech 2016) Closes $2.4 Million Seed Round
MedStack, a Dreamit HealthTech alum whose platform provides a privacy and security compliance solution for healthcare apps, recently closed a $2.4 million round of funding. TELUS Ventures led the round with participation from ScaleUP Ventures, Panache Ventures, Ontario Centres of Excellence, and several angel investors.
Companies that want to develop digital health products and connected devices have to comply with regulations like HIPAA in the US and PIPEDA in Canada in order to work with patients’ healthcare data. While products like AWS and Google Cloud offer HIPAA-compliant cloud hosting, only using this type of hosting won’t allow vendors to meet all of the security and privacy requirements of most health system, hospital, and health plan customers.
Why? In addition to requiring vendors to use HIPAA-compliant hosting, most large hospitals and payers will perform a long enterprise IT diligence process before working with a new technology company. During this process, they will check to ensure that vendors have systems in place to perform auditing, logging, backups, monitoring, and encryption along with documentation to support these systems.
For small companies and startups, meeting these obligations can be difficult and expensive. To solve this problem, MedStack’s product standardizes the supporting architecture and documentation vendors need to have to meet customers’ privacy and security requirements, allowing them to focus on selling and delivering great products.
“Entrepreneurs bringing apps to healthcare are doing important work in technology, often inspired by their own personal experiences to make health management and care delivery smarter and better”, says Founder and CEO Balaji Gopalan. “For too long, developers have struggled because of the challenges of onboarding to the industry’s stringent requirements and proving compliance over time, while maintaining technological creative freedom. We’ve solved that.”
MedStack, which already counts more than 50 digital health companies as customers, plans to use the latest round of funding to grow its new MedStack Control product, expand its engineering and sales teams, and earn new third-party security certifications.
Launched in 2015, MedStack is a cloud automation technology company that builds and manages healthcare privacy compliance into cloud hosting tools. This greatly de-risks application commercialization, and the standardized platform can help bring apps to market 60% faster. MedStack now provides enhanced app hosting and actively managed compliance policies in several countries to over 50 healthcare app vendors in various spaces. The company is proudly based in Toronto, Canada.