Censinet, a Boston, Massachusetts-based startup developing a vendor risk management platform for health care providers, today announced that it has raised $7.8 million in a series A round co-led by HML Venture Partners and Cedars-Sinai, with participation from Schooner Capital, LRVHealth, and Excelerate Health Ventures. This follows a $2 million seed round in September 2017 and brings Censinet’s total venture capital raised to just over $10 million. CEO Ed Gaudet said the new funds will be used to build out the company’s suite of tools and scale its go-to-market team.
“Censinet set out to overthrow the vendor risk management status quo in health care, delivering a solution that is at a fraction of the time and cost of antiquated approaches,” he added. “We’re very excited to have HLM Ventures and Cedars-Sinai join us as we help leading health care providers dramatically improve how they manage and reduce third-party vendor risks to patient care delivery.”
According to Gaudet, hospitals and clinics work with hundreds of vendors, on average, and each undergoes a risk assessment that can take weeks or even months to complete. Most employ manual processes (think spreadsheets, emails, and phone calls) that fail to consider changes introduced with equipment and software upgrades or miss environmental variables and emerging cyber threats.
“At Censinet, we believe risk never sleeps in health care: It’s in infusion pumps, lurks on hospital networks and in the cloud, and says ‘Good morning’ at the end of a shift,” Gaudet said. “That is why we created a better way to manage risk exclusively for health care providers — one that is transparent, immediate, and always on.”
To that end, Censinet’s cloud-based One-Click Assessment tool provides continuous updates to third-party ecosystem risk through dashboards, along with reporting tools that streamline traditionally arduous and repetitive workflows. Vendors answer standardized questionnaires about financial, legal and regulatory, information security, availability, and resiliency risk, and responses are fed into a virtual catalog that organizes active providers and surfaces up-to-date information about them.
CIOs and CISOs effectively get a real-time view of risk changes, assessments, and other product updates — an invaluable service, Gaudet says, considering that some estimates peg health care data breach costs at 2.5 times the global average.
“Censinet solves a significant cybersecurity and risk management problem that health care CIOs and CISOs must address today,” said HLM Venture Partners’ Vin Fabiani, who will join Censinet’s board of directors. “We’re excited to partner with Cedars-Sinai to help Censinet accelerate adoption for its third-party risk management platform in partnership with the world’s leading health care organizations.”