In September, the FBI warned that greater than half of related medical units in hospitals had identified essential safety vulnerabilities, and these flaws are resulting in a surge in assaults on the healthcare business. As Carly Web page reported, MedCrypt raised a $25 million spherical to assist gadget producers assume security-by-design when creating the subsequent technology of medical units.
The corporate is a Y Combinator graduate that gives software program for something the U.S. Meals and Drug Administration would contemplate a medical gadget the place cybersecurity may very well be a priority, from insulin pumps and coronary heart price displays to AI-based radiology instruments and autonomous robots. I’m positive we are able to all agree that we don’t wish to stay in a world the place individuals get blackmailed so hackers received’t ship their essential well being units on the fritz, so let’s check out the story MedCrypt shared with its buyers to boost its Collection B.
We’re in search of extra distinctive pitch decks to tear down, so if you wish to submit your personal, right here’s how you are able to 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, mentioned that it’s as-pitched, besides that among the buyer adoption data has been redacted. Is sensible; safety is delicate enterprise, and I think about conserving the client listing beneath your hat could be a wise transfer. The corporate does declare that three of the highest 5 gadget producers use their merchandise.
- Cowl slide
- Downside slide
- Target market/market dimension 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 anticipate to see in a deck from an organization at this stage, however the narrative is clear and (principally) straightforward to observe.
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 business
[Slide 9] Mediwhatnow? Picture credit score: MedCrypt
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, moderately 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 essential that MedISAO is nice for MDM? (I do know, I do know. I needed to google that, too: medical gadget producer). Yay, gross sales pipeline, I suppose?
After I visited the MedISAO web site, it lastly clicked. The positioning’s FAQ states that “MedISAO is organized by MedCrypt, Inc., a healthcare-first cybersecurity firm.”
So! We obtained there ultimately, which isn’t actually a very good 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 units, it has a possibility to maintain a finger on the whole lot that’s happening throughout its complete business. It’s a very 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 listing of member organizations, however you’ll be able to see a partial listing of members on the house web page.” It’s laborious to gauge whether or not this can be a mature, profitable initiative that’s serving to cement MedCrypt in its house or a web site the corporate flung up over a few afternoons. I might have liked to see some metrics right here, particularly concerning the worth of the gross sales pipeline from the positioning and what affect it has.
A intestine punch of a possibility slide
[Slide 4] Yeah, that appears essential. Picture credit score: MedCrypt
This slide is an absolute slam dunk. It doesn’t take plenty of creativeness to see how there’s an unlimited market with some huge cash at stake.
One of many huge questions an investor asks themselves is whether or not there’s a marketplace for a product or firm. Regulatory shifts could be a highly effective driver for adoption. For instance, earlier than GDPR laws went into impact in Could 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 adjustments. That created a booming business for net growth homes that specialised in privateness.
Nicely, it looks like the identical is occurring within the medical gadget business; this slide claims that greater than $1 trillion value of units must get secured to be in compliance. Not like net growth, nevertheless, this can be a fairly specialised business. For those who thought GDPR was wild, get a load of HIPAA. On prime of that, it’s usually non-trivial to replace the firmware on embedded digital units (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 plenty of creativeness to see how there’s an unlimited 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 of climate it.
Sturdy abstract slide
[Slide 11] Nice abstract Picture credit score: MedCrypt
Personally, I’m not a fan of READING LARGE AMOUNTS OF TEXT IN ALL CAPS; it’s shouty and reader-unfriendly. It additionally implies that people who find themselves adept at speed-reading aren’t ready to make use of their speed-reading expertise. That apart, this slide is a good one to finish on. It consists of 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 transfer the abstract slide to the start of the deck to set the tone, nevertheless it works both means.
In the remainder of this teardown, we’ll take a look at three issues MedCrypt might have improved or achieved otherwise, together with its full pitch deck!
