Toronto-based MedStack, a healthcare security and privacy compliance automation startup, has raised $3.1 million in pre-Series A financing. Blu Venture Investors and Telus Ventures led the round, with participation from new investors York IE, Argonautic Ventures, Archangel Network of Funds and MFD Investments and existing investor Donville- Kent Asset Management.
TORONTO, Sept. 15, 2021 /CNW/ – MedStack, a Toronto-based healthcare security and privacy compliance automation company, today announced the closing of its latest round of funding, a $3.1 million USD oversubscribed round led by existing investors Blu Venture Investors (BVI) and TELUS Ventures, with participation from new investors York IE, Argonautic Ventures, Archangel Network of Funds, MFD Investments, and existing investor Donville- Kent Asset Management.
MedStack is eliminating one of the biggest barriers currently impeding successful healthcare innovation by making it easier for digital health companies to quickly and affordably meet the comprehensive data security and privacy compliance requirements of the healthcare industry. MedStack is trusted by leading digital health companies across North America including Inkblot Therapy, Canada’s fastest growing virtual mental health platform, Maple, Canada’s largest telemedicine provider, 2020 On-Site, the largest on-site mobile vision provider in the United States, and Benekiva, an emerging US-based insuretech solution that is revolutionizing the way digital claims are processed.
“Having MedStack as a partner has been absolutely instrumental to our success,” says Luke Vigeant, President at Inkblot. “At Inkblot, we’re committed to providing secure, affordable and effective digital counselling to individuals accessing our platform independently or through their company EAP ( Employee Assistance Program). With MedStack’s understanding of the hurdles facing today’s healthcare industry and their unique, comprehensive approach to compliance, they’ve played a key role in helping us get quality mental health care to more people when they need it. MedStack is a must-have partner for anyone looking to build a secure and scalable digital health technology solution.”
“The COVID-19 pandemic has elevated the awareness and importance of digital health innovation, establishing a permanent, new normal. We know that cloud-based digital health solutions are key to increasing healthcare capacity, but this is only possible after a foundation of transparency and trust has been established,” says Balaji Gopalan, Co-Founder and CEO at MedStack. “MedStack makes this possible. If healthcare service organizations can trust digital health solution vendors to uphold their patient data protection obligations, we can enable better care outcomes for all involved.”
“We are excited to expand our partnership with MedStack and support their important mission of helping digital health technology solutions come to market in a secure and compliant manner,” says Bikram Bakshi, partner at Washington, DC-based BVI. “BVI has been impressed with MedStack’s team, and the momentum they have built with their fast growing customer base.”
MedStack’s offering sits at the intersection of cybersecurity and digital health, two rapidly growing industries that are attracting significant attention. The company was recognized as one of the Top 20 early-stage startups in Canada by the Canadian Innovation Exchange (CIX), as well as one of the Top 50 digital health disruptors by CB Insights and PwC.
About Blu Venture Investors (BVI)
Founded in 2010, Blu Venture Investors focuses on early-stage cyber and enterprise software firms. Currently, the firm is invested in 35 cyber companies including ID.me, Cybrary, Huntress Labs, and ThreatQuotient. As an operator-led venture capital firm, Blu’s partners bring hands-on expertise across a variety of industries and an investment perspective closely aligned with entrepreneurs.
Launched in 2015, MedStack is a cloud automation technology company built specifically for the needs of the digital health industry. Its standardized platform allows healthcare innovators to deliver ready-to-buy, compliant applications to market and scale their operations with ease. MedStack is emerging as the de facto standard for delivering industry requirements for digital health, with customer deployments in several countries around the world. The company is proudly based in Toronto, Canada.