Pitch Deck Teardown: MedCrypt’s $25M Series B deck

In September, the FBI warned that greater than half of related medical units 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 spherical to assist machine producers suppose security-by-design when creating the subsequent technology of medical units.

The firm is a Y Combinator graduate that gives software program for something the U.S. Food and Drug Administration would take into account a medical machine the place cybersecurity may very well be a priority, from insulin pumps and coronary heart charge displays to AI-based radiology instruments and autonomous robots. I’m certain we are able to all agree that we don’t wish to reside in a world the place individuals get blackmailed so hackers received’t ship their important well being units on the fritz, so let’s check out the story MedCrypt shared with its buyers to lift its Series B.

We’re in search of extra distinctive pitch decks to tear down, so if you wish to submit your individual, right here’s how you are able to do that. 

Slides on this deck

The MedCrypt Series B deck is a tidy 12-slide deck. The firm’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. Makes sense; safety is delicate enterprise, and I think about preserving the client checklist below your hat is perhaps a wise transfer. The firm does declare that three of the highest 5 machine producers use their merchandise.

1. Cover slide
2. Problem slide
3. Target viewers/market dimension slide
4. Opportunity slide
5. Mission slide
6. Product slide: Vulnerability monitoring
7. Product slide: Behavior monitoring
8. Product slide: Cryptography
9. Product slide: MedISAO
10.  Team slide
11.  Summary/traction slide
12.  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 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 sensible to inform the story of an organization by way of its merchandise, however the deck itself doesn’t do an incredible job of that; it’s apparent that it wants a voice-over to contextualize this data.

Rallying the trade

This slide is directly 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, slightly than being readable by itself. This slide comes after three slides that specify MedCrypt’s merchandise and makes use of the identical design. Perhaps 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 machine producer). Yay, gross sales pipeline, I suppose?

When 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 company.”

So! We acquired there in the long run, which isn’t actually an excellent factor to say a few 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 every thing that’s happening throughout its whole trade. It’s a extremely highly effective place to be in.

Of course, there’s nothing on this slide about how profitable it’s so far, and its web site says “MedISAO does not publish a complete list of member organizations, but you can see a partial list of members on the home page.” It’s laborious to gauge whether or not it is a mature, profitable initiative that’s serving to cement MedCrypt in its house or an internet site the corporate flung up over a few afternoons. I might have beloved to see some metrics right here, particularly concerning the worth of the gross sales pipeline from the location and what influence it has.

A intestine punch of a possibility slide

[Slide 4] Yeah, that appears necessary. Image credit score: MedCrypt

One of the massive 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 May 2018, each web site in Europe and each firm that needed to do enterprise with EU nations in a short time wanted to make adjustments. That created a booming trade for internet improvement homes that specialised in privateness.

Well, it looks as if the identical is going on within the medical machine trade; this slide claims that greater than $1 trillion value of units must get secured to be in compliance. Unlike internet improvement, nevertheless, it is a fairly specialised trade. If you 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 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 have the ability to climate it.

Strong abstract slide

[Slide 11] Great abstract Image 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 abilities. 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. Another strategy would have been to maneuver the abstract slide to the start 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 in another way, together with its full pitch deck!