In September, the FBI warned that greater than half of related medical gadgets in hospitals had recognized important safety vulnerabilities, and these flaws are resulting in a surge in assaults on the healthcare trade. As Carly Page reported, MedCrypt raised a $25 million round to assist system producers assume security-by-design when creating the following technology of medical gadgets.
The corporate is a Y Combinator graduate that gives software program for something the U.S. Meals and Drug Administration would take into account a medical system the place cybersecurity could possibly be a priority, from insulin pumps and coronary heart charge displays to AI-based radiology instruments and autonomous robots. I’m positive we will all agree that we don’t need to stay in a world the place folks get blackmailed so hackers received’t ship their important well being gadgets on the fritz, so let’s check out the story MedCrypt shared with its traders to lift its Collection B.
We’re in search of extra distinctive pitch decks to tear down, so if you wish to submit your individual, here’s how you can do that.
Slides on this deck
The MedCrypt Collection B deck is a tidy 12-slide deck. The corporate’s COO, Vidya Murthy, who shared the deck with me, stated that it’s as-pitched, besides that a few of the buyer adoption data has been redacted. Is sensible; safety is delicate enterprise, and I think about conserving the shopper checklist underneath your hat is perhaps a wise transfer. The corporate does declare that three of the highest 5 system producers use their merchandise.
- Cowl slide
- Drawback slide
- Target market/market measurement slide
- Alternative slide
- Mission slide
- Product slide: Vulnerability monitoring
- Product slide: Conduct monitoring
- Product slide: Cryptography
- Product slide: MedISAO
- Crew slide
- Abstract/traction slide
- Closing slide
Three issues to like
MedCrypt’s slide deck reveals that it’s a mature group with a broad product lineup and even the beginnings of an ecosystem affect play. The deck is fairly uncommon in that it’s lacking a good quantity of data that I’d count on to see in a deck from an organization at this stage, however the narrative is clear and (principally) straightforward to comply with.
A shocking quantity of the deck focuses on the corporate’s product lineup, with 4 of the ten content material slides devoted to that. It is smart to inform the story of an organization via its merchandise, however the deck itself doesn’t do an ideal job of that; it’s apparent that it wants a voice-over to contextualize this data.
Rallying the trade
This slide is without delay superb and fairly missing. When it first got here up, I used to be confused about what MedISAO was and why it was on the corporate’s slide deck. It reveals that this deck was designed with a voice-over in thoughts quite than being readable by itself. This slide comes after three slides that designate MedCrypt’s merchandise and makes use of the identical design. Maybe that ought to have been the tip-off that that is additionally one of many firm’s merchandise, however I discovered it complicated at first. Why is it good that the FDA recommends ISAO memberships? What the hell even is an ISAO? (I needed to Google it; it’s an data sharing and evaluation group). Why is it necessary that MedISAO is sweet for MDM? (I do know, I do know. I needed to Google that, too: medical system producer). Yay, gross sales pipeline, I suppose?
Once I visited the MedISAO web site, it lastly clicked. The site’s FAQ states that “MedISAO is organized by MedCrypt, Inc., a healthcare-first cybersecurity firm.”
So! We received there ultimately, which isn’t actually a great factor to say a couple of pitch deck. What is tremendously spectacular, although, is that if MedCrypt is ready to be the central repository for sharing safety data throughout all medical gadgets, it has a chance to maintain a finger on every little thing that’s occurring throughout its complete trade. It’s a extremely highly effective place to be in.
In fact, there’s nothing on this slide about how profitable it’s so far, and its web site says “MedISAO doesn’t publish an entire checklist of member organizations, however you possibly can see a partial checklist of members on the house web page.” It’s exhausting to gauge whether or not it is a mature, profitable initiative that’s serving to cement MedCrypt in its area or a web site the corporate flung up over a few afternoons. I’d have liked to see some metrics right here, particularly in regards to the worth of the gross sales pipeline from the positioning and what influence it has.
A intestine punch of a chance slide
This slide is an absolute slam dunk. It doesn’t take a number of creativeness to see how there’s an infinite market with some huge cash at stake.
One of many large questions an investor asks themselves is whether or not there’s a marketplace for a product or firm. Regulatory shifts generally is a highly effective driver for adoption. For instance, earlier than GDPR laws went into impact in Might 2018, each web site in Europe and each firm that needed to do enterprise with EU international locations in a short time wanted to make modifications. That created a booming trade for internet improvement homes that specialised in privateness.
Effectively, it looks as if the identical is occurring within the medical system trade; this slide claims that greater than $1 trillion value of gadgets must get secured to be in compliance. Not like internet improvement, nonetheless, it is a fairly specialised trade. When you thought GDPR was wild, get a load of HIPAA. On high of that, it’s typically non-trivial to replace the firmware on embedded digital gadgets (that’s a part of the explanation we’re on this mess within the first place).
This slide is an absolute slam dunk: It doesn’t take a number of creativeness to see how there’s an infinite market with some huge cash at stake (and some huge cash to spend) — with a ticking clock. It’s an ideal storm, and MedCrypt has constructed a ship that simply may be capable to climate it.
Robust abstract slide
Personally, I’m not a fan of READING LARGE AMOUNTS OF TEXT IN ALL CAPS; it’s shouty and reader-unfriendly. It additionally signifies that people who find themselves adept at speed-reading aren’t ready to make use of their speed-reading abilities. That apart, this slide is a good one to finish on. It contains an enormous quantity of actually good data: It summarizes the market alternative, merchandise, variety of prospects and former fundraises, and helps set the tone for the Q&A on the finish. One other method would have been to move the summary slide to the beginning of the deck to set the tone, however it works both means.
In the remainder of this teardown, we’ll take a look at three issues MedCrypt might have improved or accomplished otherwise, together with its full pitch deck!