The recent security breach at a major US hospital chain, where hackers stole 4.5 million patients’ personal data, highlights how important it has become to protect against cyber-attacks. Redspin, the leading provider of HIPAA IT security analysis services to the healthcare industry, is perfectly positioned to help. Lighter Capital recently made a follow-on investment in RepSpin to help them further develop and market their services.
“Redspin is an expert in penetration and IT security testing,” says Molly Otter, Lighter Capital’s Chief Investment Officer. “With over 13 years in the business, they have conducted thousands of security assessments for hundreds of companies, including many Fortune 1000 firms. They are uniquely positioned to provide the kind of security services in healthcare and other industries that companies simply can’t do without.”
Last quarter’s $4.8 million Office of Civil Rights (OCR) settlement agreement with two hospitals over HIPAA compliance violations is a good indication of the price companies can pay if their security is breached.
“We are in a really important phase of our growth right now,” says Dan Berger, Redspin’s President and CEO. “Being backed by Lighter Capital has enabled us to capitalize on opportunities as they arise. Getting additional funding when we need it is a huge plus.”