Healthcare app privacy start-up MedStack raises $2.4m
March 5, 2019
Canadian start-up MedStack, which specialises in privacy and security compliance for healthcare apps, has raised $2.4m in an oversubscribed seed round.
MedStack's mission is to enable more digital innovation to be adopted in healthcare so cloud technologies can deliver care anywhere with smarter, more timely decisions and better experiences. The company's first focus is to help app developers meet privacy compliance requirements by way of automation systems. Those systems standardise data protection elements for HIPAA and Canadian health data privacy legislations across a broach choice of public cloud vendors and technology stacks and generate real-time-auditable security policies and real-time and compliant monitoring.
MedStack founders CEO Balaji Gopalan and CTO Simon Woodside have evolved their technology with the input of hundreds of digital health start-ups through programmes including Dreamit Health, Creative Destruction Lab and 500 Startups.
"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," said 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."
The round was led by Telus Ventures, with participation from ScaleUp Ventures and Panache Ventures. Existing investor Ontario Centres of Excellence and several existing angel investors have also participated in this round. Telus Ventures and ScaleUp are joining the company's board with this round, as MedStack celebrates more than fifty digital health companies actively leveraging its platform.
The Telus investment represents a strategic synergy between MedStack's reputation as an enabler for digital health companies in Canada, the USA and elsewhere, and Telus' position in delivering digital health products across the healthcare ecosystem, and collaborating with industry partners through the Telus Health Exchange (THX) platform.
"We are uniquely positioned as a corporate venture capital fund to invest in companies like MedStack that are helping to empower health start-ups to succeed and scale," said Rich Osborn, managing partner at Telus Ventures. "Our investment goes beyond capital as we leverage our breadth of expertise to support companies in their growth trajectory building networks within the health and developer communities and uncovering new opportunities with other emerging businesses. Together with MedStack, we look forward to advancing the use of technology in healthcare and improving health outcomes."
The funds from this round will be put towards channel development for the recently-launched MedStack Control, a system that brings real-time hands-on infrastructure control and more flexibility for client companies, as well as to expanding the engineering, sales and support teams to enhance and support the platform's capabilities, and towards earning additional third-party security certifications and attestations.
Launched in 2015, MedStack is a cloud automation technology company that builds and manages healthcare privacy compliance into cloud hosting tools. This de-risks application commercialisation, and the standardised platform can help bring apps to market faster. MedStack now provides app hosting and actively managed compliance policies in several countries. The company is based in Toronto, Canada.