Conduit Health: Widening the AI Moat with DME
At XYZ, we've long believed that the best founders in verticalized AI aren't just great operators. They're people whose lived experience inside a broken system gives them an unfair advantage in fixing it. That's exactly what we found in Natan Wise and Rocky Seftel. Natan built his operational chops at Candid where he understood how hard it is to make care delivery actually work and developed an instinct for where the leverage points are. Natan inspires genuine conviction in the people around him, which shows up in how he recruits, how he sells, and how he builds. Rocky came up entirely through healthcare, building products at Signify Health, Fintango Health, and Medtel with firsthand lived experience of how care gets delivered, how it gets billed, and where the system quietly fails the patients it's supposed to serve. Together, they are attacking a complex, regulated market: one with lived healthtech experience and the operational instincts to execute, and one with deep clinical domain expertise that makes the product credible from the inside out.
Conduit Health is the vertically integrated hub that the Durable Medical Equipment industry has long needed. Getting DME (wheelchairs, compression devices, and adult incontinence supplies) to a home-based patient with a chronic illness has historically taken 34 days on average, not because the equipment is scarce, but because the paperwork compliance problem shows up on virtually every single order. No one in the care chain wants to chase down a doctor's signature for an order the prescribing physician doesn't have time for and can't meaningfully bill. Conduit solves this with a telehealth model that gets the right DME prescribed and routed in 10 minutes, collapsing that process to 3 days. More importantly, it creates net-new billable care visits that didn't exist before. Conduit isn't fighting over thin DME supplier margins; it's generating a new category of clinical revenue that payors already know how to pay for.
We are excited to lead the seed round and to double down on our partnership at the Series A. Our excitement runs counter to the prevailing anxiety about vertical AI companies that improving foundation models will eventually commoditize many enterprise workflows. In Conduit's case, the proprietary data Conduit has assembled (insurance coverage rules, SKU-to-CPT mappings, supplier catalogs, prior authorization logic) is genuinely hard to collect. Better AI doesn't erode that asset; it amplifies it.
The moat compounds with every order that flows through the platform and every improvement in the underlying models. Early cohort data bears this out: incredible patient retention and revenue expansion, refill rates jumping from 55% to 95% for onboarded patients, and a partnerships pipeline that has consistently grown faster than the team can onboard it.
We are thrilled to announce that we are continuing our partnership with Natan, Rocky, and the Conduit team as they close their $17M Series A, led by Drive Capital, with participation from XYZ Venture Capital, Eniac Ventures, Twelve Below, and Go Global Ventures.
The $60-80 billion DME market has waited a long time for someone to fix it the right way: working with the incentives that already exist, building proprietary infrastructure rather than renting it, and delivering dramatically better care to the patients who need it most.
