Some of the nation’s top healthcare-focused venture capital houses are party together to organize an advisory board with the technology security certification provider, Hitrust, to create best practices for data security for startups developing digital state technologies.
The speeches, spearheaded by the Nashville-based, healthcare-focused investment fund, Frist-Cressey, were designed to accelerate the adoption of digital technologies throughout the healthcare industry by creating best-practices around data security that large healthcare organizations requirement before adopting a brand-new service.
” Our assistance or our software want to be taken nationwide and everybody gets evoked and thats’ when you get in front of the Chief security officer’s office and they ask if you’re HiTrust verified ,” says Frist-Cressey partner Chris Booker.
” It reaches[ startups] more marketable or most feasible ,” says Daniel Nutkis, the chief executive of Hitrust.” Constitutions tend to be reluctant to work with startups …[ Our certification] handed risk capital conglomerates a statu of ease and we recognized it as an opportunity .. Chris approached us to better develop a program more targeted at early stage firms … so that this becomes an easier curriculum and can make it more wide-scale .”
So far investors including Ascension Ventures, Bain Capital. Ventures, Echo Health Ventures, Frist Cressey Ventures, Andreessen Horowitz, Blue Cross Blue Shield Ventures, Heritage Group, New Enterprise Associate and 7wire Ventures has already been indicated on to the venture capital advisory council.
For the houses, it’s simply a matter of protecting what is an increasing percentage of fund commitments. Investors have moved $50 billion into healthcare startups, according to data gathered from CB Insights, and roughly $16 billion of those investments were in digital health business. Meanwhile, very early stages startups are increasingly vulnerable to data violates and sloppy defence rules — disappointments of omission that can mean the difference between life and death for early stage startups.
” Data violates and privacy abuses … these everything there is destroy a company ,” says Booker.
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