Use of Funds - $2.25M Target / $2.75M Hard Cap
Updated: 2026-05-17 Raise: $2.25MRound sizeRōvn SAFE term sheet · 2026-05 · canonical raise (see 02.1 Use of Funds) target on a $15M post-money SAFERound structureRōvn SAFE term sheet · 2026-05 · $2.25M / $15M post-money cap Runway: 15-18 months Hard cap: $2.75M only with strong lead demand or pilot momentum
1. Allocation Plan
| Category | Target allocation | What it funds |
|---|---|---|
| Product, engineering, and implementation-partner support (named under NDA) | $600K | Facility operator build, provider lifecycle depth, source-receipt hardening, AI workflow engine, maintenance, implementation velocity |
| Founder salaries and payroll buffer | $480K | Three paid founders at modest salary levels plus payroll/tax buffer so execution is not dependent on unpaid labor |
| Legal, compliance, security, BAA, insurance | $240K | 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 | $260K | Source authority access, NPDB/Nursys/DEA/OIG/SAM/identity/background vendors, AWS, model usage, monitoring, data tooling |
| Pilot implementation and customer success | $200K | Design-partner onboarding, credentialing operations support, training, migration assistance, support materials |
| GTM, sales, travel, materials, first GTM hire | $250K | Founder-led sales motion, NAMSS/regional events, outbound tooling, customer visits, collateral, first AE/CS hybrid hire |
| Advisors and domain experts | $80K | Clinical, credentialing, payer/provider enrollment, compliance, and security advisor support |
| Operating buffer | $140K | Working-capital cushion, vendor overages, delayed close risk, incident response reserve |
| Total | $2,250,000 |
2. Why $2.25M
$1M is underfunded for this plan. Rōvn is paying three founders, using product/engineering support, buying source access, funding security/compliance, handling pilots, and building the first repeatable sales motion.
$2.25MRound sizeRōvn SAFE term sheet · 2026-05 · canonical raise (see 02.1 Use of Funds) is the clean target because it funds the full workforce operator plan without forcing unpaid-founder assumptions or starving security, compliance, and implementation.
3. Hard-Cap Use
If the round reaches $2.75M, the extra $500K is timing and de-risking capital, not scope expansion.
| Incremental use | Amount | Rationale |
|---|---|---|
| Source and verification depth | $100K | Close education/FSMB/reference/board-cert automation gaps faster |
| Product and AI workflow acceleration | $150K | Pull forward committee, OPPE/FPPE, reappointment, and survey export depth |
| Compliance and security | $75K | Earlier SOC 2 evidence window, pentest, security review, procurement artifacts |
| GTM and implementation | $100K | More design-partner travel, materials, onboarding support, and pilot conversion capacity |
| Buffer | $75K | Protects execution if vendor/source costs or pilot timing run hot |
4. 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.
5. 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 AI workforce operator for healthcare, source-backed proof, regulated workflow depth, and the first repeatable sales motion.