Baltimore IT Startup Protenus Raises $4 Million In Series A Funding

February 17
8:58 AM 2016

Protenus, a Baltimore based health IT startup, has announced on Tuesday raising $4 million in a fundraising round. The startup offers tools to protect electronic medical records from employee snooping through identifying inappropriate access.

The Series A funding has been received from a group of investors led by Arthur Ventures, an early stage capital provider with offices in Fargo, North Dakota and Minneapolis. LionBird Venture Capital, DreamIt Ventures, Cognosante, TEDCO and the Baltimore Angels appear as other investors in the financing round, reports The Baltimore Sun.

Robert Lord and Nick Culbertson have founded Protenus in 2014 as medical students at Johns Hopkins. The health startup currently works with Johns Hopkins Health System and has a pilot program with Inova Health System in Virginia. The raised fund will allow the company to expand its marketing and sales teams to go after more health system clients, reports Baltimore Business Journal quoting Robert Lord, a co-founder of Protenus.

Preventing unwarranted access to medical records has been acknowledged as a major issue for the hospitals. Digital health records, transforming from paper version, is more vulnerable to hacking.

The reputational damage from external and internal data breaches has forced health service providers to battle with the threat. This battle has offered a wider business opportunity to cyber security providers like Protenus, reports MedCity News.

Protenus has experienced a tremendous success with existing customers. Now, the health data securer eyes to scale up the company to deliver solutions throughout the US considering wider demand from the hospitals followed by increased number of deserving patients.

Leaders from the hospitals focus on implementation of better privacy controls against insider threats and enabling data analytics. Thus larger data solutions are being used more effectively. This has been narrated as two features working in favor of Protenus by Lord in a written statement.

Protenus has grown from two employees to a fleet of fourteen over the past year while expecting to hire ten more employees by the next year. A wider office space is required to accommodate the increasing number of employees.

Currently it shares space with Sage Growth Partners in a 1,000 square feet office at Canton's Broom Factory. Lord and Culbertson intends for shifting to a larger space by the next six months.

Cyber security has become a growing concern for the health service providers. The rising concern has offered a widespread business opportunity to the security service renderers like Protenus. The health IT startup has announced raising $4 million from Series A funding on Tuesday. This fund will help the company to expand its business all over the US.

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