--- url: 'https://qubit.capital/blog/us-seed-weekly-funding-roundup-week-3-may-2026-2' title: 'US Seed Weekly Funding Roundup (May 11-18, 2026): $28.0M Raised Across 3 Deals' author: name: Sagar Agrawal url: 'https://qubit.capital/blog/author/sagar' date: '2026-05-18T08:09:46+05:30' modified: '2026-05-18T17:43:49+05:30' type: post summary: 'US seed deals from May 11-18, 2026: Illoca ($13M), Urologic Health ($11M), and Secludy ($4M) raised $28M across AI, healthtech, and privacy infrastructure.' categories: - Weekly Funding Roundup image: 'https://qubit.capital/wp-content/uploads/2026/05/featured-us-seed-67064.webp' published: true --- # US Seed Weekly Funding Roundup (May 11-18, 2026): $28.0M Raised Across 3 Deals Three US seed rounds closed between May 11 and May 18, 2026, pulling in $28.0M across AI-native construction software, non-invasive medical devices, and privacy infrastructure for regulated AI. The deals share a pattern: technical founders with deep domain credentials taking a wedge into industries where incumbents still depend on legacy workflows. Bessemer led the largest round of the week, while a mix of strategic medtech investors and prominent angels filled out the other two. The seed activity sits inside a much heavier week for US capital overall. Series A deals pulled in $252.0M across 7 transactions and late-stage rounds added another $569.0M across 5 deals, with growth investors writing the biggest checks into AI infrastructure and orbital compute. Seed-stage founders raised smaller rounds but went after problems with clearer monetization paths: drafting hours in architecture, catheter-free diagnostics in urology, and synthetic data for banks blocked by privacy review. Weekly Funding Roundup MAY 11-18, 2026 $28M TOTAL RAISED 3DEALS CLOSED 100%SEED $9.3MAVG DEAL SIZE USTOP REGION BY STAGE Seed$28M100% BY SECTOR IllocaAI / ConTech$13M Urologic Health Inc.Healthtech / Medical Devices$11M SecludyCybersecurity / Privacy Infrastructure$4M Table of Contents - [1. Illoca Raises $13M For AI-Native Construction Design](#1-illoca-raises-$13m-for-ai-native-construction-design) [Deal Overview](#deal-overview) - [Investor Profile](#investor-profile) - [Company and Leadership](#company-and-leadership) - [Problem and Opportunity](#problem-and-opportunity) - [Product and Technology](#product-and-technology) - [Use of Proceeds and Vision](#use-of-proceeds-and-vision) - [Market Context](#market-context) - [2. Urologic Health Raises $11M For Non-Invasive Urodynamics](#2-urologic-health-raises-$11m-for-non-invasive-urodynamics) [Deal Overview](#deal-overview-1) - [Investor Profile](#investor-profile-1) - [Company and Leadership](#company-and-leadership-1) - [Problem and Opportunity](#problem-and-opportunity-1) - [Product and Technology](#product-and-technology-1) - [Use of Proceeds and Vision](#use-of-proceeds-and-vision-1) - [Market Context](#market-context-1) - [3. Secludy Raises $4M For Privacy-Tech in Fintech](#3-secludy-raises-$4m-for-privacy-tech-in-fintech) [Deal Overview](#deal-overview-2) - [Investor Profile](#investor-profile-2) - [Company and Leadership](#company-and-leadership-2) - [Problem and Opportunity](#problem-and-opportunity-2) - [Product and Technology](#product-and-technology-2) - [Use of Proceeds and Vision](#use-of-proceeds-and-vision-2) - [Market Context](#market-context-2) - [Lessons For Founders](#lessons-for-founders) ## 1. Illoca Raises $13M For AI-Native Construction Design ### Deal Overview - Stage: Seed - Sector: AI / ConTech - Geography: San Ramon, California - Round size: $13M - Lead investor: Bessemer Venture Partners ### Investor Profile Bessemer Venture Partners led the round with participation from AIX Ventures, Root Ventures, and Alt Ventures. Bessemer has been one of the more active enterprise-AI seed investors of the past two years, and AIX Ventures brings a research-heavy AI thesis to the cap table. The syndicate matters here because category-defining design tools take years to displace incumbents like Autodesk. Patient capital with software conviction is the right fit for a product that has to win architects one firm at a time. ### Company and Leadership [Illoca](https://illoca.com) was founded in 2024 by Chin-Yi Cheng and Chiaowei Yu. Cheng previously worked at Google DeepMind and Autodesk AI Lab, where he published research on generative AI for architectural design. Yu led the BIM team at Tesla, where he delivered models for the Gigafactory and Tesla’s R&D facilities. The company bootstrapped its pre-seed phase. This $13M is its first announced institutional round. ### Problem and Opportunity Architects spend roughly 60% of their hours, or about 1,300 hours per year each, on drafting and reformatting rather than designing. Illoca calls this the $720B annual “Production Tax” on the construction industry. The pain falls on firms designing housing, hospitals, data centers, and infrastructure, where staffing shortages collide with surging demand. Existing toolchains (Revit, AutoCAD, SketchUp) have hundreds of buttons and steep learning curves, and bolting AI on top doesn’t change the underlying interaction model. ### Product and Technology Illoca’s flagship is Tracing Paper, a prompt-first design canvas where architects sketch, mark up drawings, or type natural-language prompts. AI agents then generate and refine both 2D drawings and 3D BIM models in real time. Output is editable and exports to Revit-compatible formats. The technical bet is on millimeter precision, code compliance, and structural integrity, not just visual generation. Cheng’s published research at DeepMind and Autodesk gives the company proprietary models trained on architectural drawings, BIM data, and building codes. The tracing-paper UX also captures structured intent signals (sketches, prompts, markups) that conventional CAD doesn’t capture, feeding a fine-tuning data flywheel. ### Use of Proceeds and Vision The capital goes toward scaling the Tracing Paper platform, expanding generative AI engineering and design research teams, broadening 2D and 3D capabilities, and growing go-to-market into firms building housing, hospitals, data centers, and infrastructure. Illoca positions itself as a category-defining replacement for Revit and SketchUp, not a plug-in. The goal: “generate code-compliant, construction-ready designs in the time it takes to open a file.” ### Market Context The global AEC software market sits at roughly $11B in 2025 and is projected to reach $20B by 2030. Autodesk dominates with Revit and AutoCAD, alongside Bentley, Nemetschek, and Trimble. AI-native challengers include Hypar, Higharc, TestFit, Finch3D, Snaptrude, and Autodesk’s own Forma. Tailwinds are stacked in Illoca’s favor: a global housing shortage, the hyperscale data center build-out, infrastructure renewal cycles, and user expectations reset by ChatGPT and Claude that any tool should accept natural-language prompts. ## 2. Urologic Health Raises $11M For Non-Invasive Urodynamics ### Deal Overview - Stage: Seed - Sector: Healthtech / Medical Devices - Geography: Jersey City, New Jersey - Round size: $11M - Lead investor: Undisclosed strategic investor ### Investor Profile The round was led by an undisclosed strategic investor, with participation from Edge Medical Ventures, SHD Partners, and Longevity Venture Partners. The mix of strategic capital and dedicated medtech funds is typical for an early medical device company heading into FDA submission. Strategic medtech backing matters at this stage because a 510(k) clearance pathway benefits from investors who can introduce the company to clinical KOLs, hospital systems, and potential commercial partners. ### Company and Leadership [Urologic Health Inc.](https://urologichealth.com) was founded in 2023 by Adam Yaacov and Dr. Noam Omer. Yaacov runs the company as Co-founder and CEO; Omer leads the scientific and clinical side. The team is building US HQ in Jersey City, NJ with product development roots in Israel. The $11M is the company’s first publicly announced round. ### Problem and Opportunity Bladder dysfunction (overactive bladder, urinary retention, incontinence, BPH) affects hundreds of millions of patients globally. Traditional urodynamics testing requires catheterization, anesthesia in some cases, and specialized urodynamics suites, which limits how often the test can be performed and pushes many patients to skip diagnosis entirely. That diagnostic friction creates an aging-population problem. As BPH and post-prostatectomy patient pools grow, providers want less invasive workflows they can run in outpatient and primary-care settings. ### Product and Technology The niu System delivers catheter-free bladder function testing. External sensors and proprietary signal-processing and AI convert bladder activity (pressure, volume, and flow surrogates) into diagnostic data equivalent to traditional invasive urodynamics. The company positions itself as the first and only system to capture full bladder function data without catheterization. Repeatable low-friction testing produces longitudinal patient data that one-shot invasive urodynamics can’t match, which builds a defensible diagnostic dataset over time. ### Use of Proceeds and Vision Capital will fund clinical validation studies, the FDA 510(k) regulatory pathway, product and manufacturing development, the new US HQ in Jersey City, and initial US commercial launch preparation. The longer-term aim is to move urodynamics from a rare, uncomfortable specialty test into routine outpatient and primary-care screening, similar to how non-invasive ECG democratized cardiac monitoring. ### Market Context The US urodynamics market is roughly $1.5B inside a broader urology devices market above $40B. Laborie Medical Technologies leads the incumbent set, with Cook Medical and MMS also active. No established competitor currently has an FDA-cleared non-invasive urodynamics product, which gives Urologic Health a clear first-mover window if the 510(k) goes through. ## 3. Secludy Raises $4M For Privacy-Tech in Fintech ### Deal Overview - Stage: Seed - Sector: Cybersecurity / Privacy Infrastructure - Geography: San Francisco, California - Round size: $4M - Lead investors: Impression Ventures, LAUNCH and The Syndicate (Jason Calacanis) ### Investor Profile The syndicate is unusually broad for a $4M seed: Impression Ventures, LAUNCH and The Syndicate led by Jason Calacanis, Wedbush Ventures, Precursor Ventures, Hustle Fund, Script Capital, Mana Ventures, and Chispa VC. Impression Ventures brings a fintech-infrastructure thesis, and Calacanis’s network gives the company access to a wide pool of operator-angels who can open doors at banks and payment companies. The wide syndicate reflects an early-stage company picking distribution help over check-size concentration. ### Company and Leadership [Secludy](https://secludy.com) was founded in 2024 by Ben Cerchio and Mingze He. Cerchio previously worked on product privacy at TikTok and InfoSec compliance at PayPal, where he watched AI projects repeatedly get blocked by privacy review, legal review, and third-party vendor contract review. That recurring pattern is what shaped the company’s wedge. HQ is in San Francisco, and the $4M is Secludy’s first institutional round. ### Problem and Opportunity Regulated enterprises (banks, payment companies, healthcare providers) sit on their most valuable proprietary data, but can’t use it to train or evaluate AI models because privacy review, legal, and vendor contract clauses block the path. Generic LLMs trained without that data underperform; legacy masking and pseudonymization don’t satisfy regulators or modern privacy standards. The result: AI projects in regulated industries stall before they start. The pain point is concrete and named in nearly every enterprise AI procurement conversation in fintech and healthcare. ### Product and Technology Secludy generates privacy-guaranteed synthetic data that mirrors the statistical properties of original sensitive datasets. The platform is built on differential privacy rather than legacy masking, and outputs are fully anonymized and out of GDPR scope. The product has four components: a private synthetic data generator, a secure fine-tuning pipeline with configurable privacy budgets, a leakage-detection toolkit with canary PII injection to mathematically verify zero leakage, and bias and diversity measurement. It deploys inside the customer’s own VPC or on-premises with integrations for AWS, Azure, GCP, Snowflake, and Databricks, with deployment in under one hour. The defensibility sits on three layers: deep differential-privacy expertise productized for enterprise workflows, a verifiable leakage-detection toolkit that lets customers and regulators audit privacy guarantees mathematically, and a self-hosted deployment model that legacy data-exit-based vendors can’t match. ### Use of Proceeds and Vision Funds go toward scaling engineering and applied research (especially in differential privacy and synthetic data), deepening go-to-market into financial services design partners, expanding into healthcare and life sciences, and hardening enterprise deployment tooling. The opening wedge is financial services for fraud detection, AML, and LLM fine-tuning. The longer-term positioning is the privacy infrastructure layer that safely unlocks proprietary data for generative AI across regulated industries. ### Market Context The synthetic data generation market is projected to grow from roughly $0.4B in 2025 to over $5B by 2030, a 35-45% CAGR. The adjacent privacy-enhancing technologies market is heading toward $25B by 2030. Competitors include Mostly AI, Gretel.ai, Tonic.ai, Hazy, Syntegra, Statice (acquired by Anonos), and Privacy Dynamics. The macro setup favors privacy-first synthetic data: generative AI adoption in regulated industries is blocked by privacy and legal review, regulatory pressure is rising (GDPR, CCPA, HIPAA, EU AI Act), and differential privacy is moving from academic research into production deployments. ## Lessons For Founders - Founder pedigree is doing real work at seed. All three rounds went to teams with deep, specific domain credentials (DeepMind/Tesla BIM at Illoca, Israeli medtech at Urologic Health, TikTok/PayPal privacy at Secludy) rather than generalist operators. - Wedges into regulated workflows attract investors even at $4M checks. Secludy’s narrow opening (banks blocked by privacy review) drew nine investors because the pain is recurring and named. - Replacement strategies still get funded if they’re concrete. Illoca isn’t trying to be a Revit plug-in; it’s pitching a category-defining replacement, and Bessemer signed off because the technical team can credibly build it. - Medical device seeds need strategic capital, not just dollars. Urologic Health’s investor mix points at the 510(k) pathway and commercial launch coming next, not just runway extension. - Data flywheels matter more than features at this stage. Each company has a clear story for why proprietary data gets better with usage: tracing-paper intent signals, longitudinal bladder data, and cross-customer privacy audit telemetry.