Use of Funds - $5M Seed
Updated: 2026-07-09 Raise: We are raising a $5M seed round, opening November 2026 into YC Demo Day on December 3. Sizing: The round is sized to fund the team through the 18-to-24-month NCQA-CVO certification clock. Terms: Shared on request once counsel confirms the offering exemption.
1. Allocation Plan
Dollar-level allocations are finalized with the board against actual burn and traction at close. The shape of the spend is fixed: people are about 90% of the burn, every vendor, cloud, AI, and SaaS line combined runs roughly $25K per month, and primary-source fees pass through at cost.
| Category | What it funds |
|---|---|
| Team (about 90% of spend; every hire milestone-gated) | Founding CCCO converts to full-time and owns NCQA-CVO survey prep; implementation and customer-success lead on the first pilot signature; AI/agent engineer under the CTO once an operated-data backlog exists; compliance and security owner before agent-initiated contact ships; a second closer. Three founders at modest salaries. |
| Product, engineering, and verification depth | Facility operator build, provider lifecycle depth, source-receipt hardening, AI workflow engine, maintenance, implementation velocity |
| Legal, compliance, security, BAA, insurance | Counsel, BAA/MSA/pilot agreements, HIPAA-alignedHIPAA posture06.2 HIPAA Posture Memo · canonical procurement-safe phrasing (not 'compliant' / not 'certified') controls, SOC 2 readiness, E&O, cyber, diligence support |
| Source access, verification vendors, AWS, AI, tooling | Source authority access, NPDB/Nursys/DEA/OIG/SAM/identity/background vendors, AWS, model usage, monitoring, data tooling |
| Pilot implementation and customer success | Design-partner onboarding, credentialing operations support, training, migration assistance, support materials |
| GTM, sales, travel, and materials | Founder-led sales motion, NAMSS/regional events, outbound tooling, customer visits, collateral |
| Advisors and domain experts | Clinical, credentialing, payer/provider enrollment, compliance, and security advisor support |
| Operating buffer | Working-capital cushion, vendor overages, delayed close risk, incident response reserve |
2. Why $5M
The number is set by the milestone the round must reach, not backed into. NCQA-CVO certification is an 18-to-24-month path and the compounding defensibility in the plan, so the round is sized to fund the Phase 1 team through that clock with buffer.
People are about 90% of the burn, and every hire is gated to a milestone, never the calendar. The round pays three founders, buys source access, funds security and compliance, handles pilots, and builds the first repeatable sales motion without starving security, compliance, or implementation.
3. Milestone Gates
Months 0-6
- Convert the upgraded Phase-1 facility operator build into design-partner-ready workflows.
- Finish receipt/provenance enforcement across imported facts.
- Lock clinical, credentialing, payer, and security advisor bench.
- Sign first design-partner pilots.
- Complete core legal/security procurement package.
Months 6-12
- Convert pilots into paid annual contracts.
- Expand medical staff office depth: committee workflow, OPPE/FPPE, reappointment, expirables, and audit exports.
- Close source verification gaps for physician/FSMB, education/training, references, and board-cert depth.
- Launch payer-readiness tracking and billability gap forecasting.
Months 12-18
- Prove repeatable sales motion across facility clusters.
- Add multi-facility RBAC and admin workflows.
- Advance SOC 2 and NCQA CVO alignment packages.
- Prepare Series A proof: revenue, retention, workflow usage, receipt volume, and audit defensibility.
4. Spend Discipline
Rōvn will not spend the round on offices, generic brand agencies, full enterprise conferences without pipeline, payroll/EOR builds, deep ATS/HRIS connectors, payer as a core Phase-1 workflow, or AI interview transcription/scribe features.
The round is for the operating network for the healthcare workforce, source-backed proof, regulated workflow depth, and the first repeatable sales motion.