AlloDirect announced a pre-seed round led by Chicago-based M25, with participation from angel investors, and the appointment of James A. Casavant as Chief Technology Officer. The company has been live in production since September 2025, processing orders for surgery centers and hospitals in Pennsylvania, Indiana, Texas, Oklahoma and Florida.
How AlloDirect’s ordering layer works
AlloDirect provides a single ordering layer for human tissue: facilities search one catalog of more than 24,000 allografts from six AATB-accredited tissue banks, place the order in a single workflow, and receive lot and UDI documentation captured at the point of order. Orders route directly to the originating tissue bank for fulfillment. If a required graft is not in the catalog, the facility can request it and AlloDirect coordinates sourcing and delivery.
Unlike most device distribution, allograft tissue ships from the tissue bank to the facility rather than through intermediaries that hold inventory. Those intermediaries carry information rather than product, and that information can be slow: a facility asking what is available today can wait days for an answer, supplier by supplier. Existing tracking and compliance systems typically start after implantation and do not determine where an order should go.
Market gap and timing
AlloDirect says the current channel returns little information to tissue banks about what facilities need or when, which can result in recovered and processed grafts going unused. The platform seeks to connect banks directly with the facilities that buy from them, giving banks visibility into real demand so recovery and processing can be planned against actual needs.
The company positions its launch amid a shift in where surgery occurs: in its CY 2026 payment rule, CMS added more than 500 procedures to the ASC covered procedures list and began a three-year phase-out of the inpatient-only list, starting with 285 largely musculoskeletal procedures. AlloDirect notes that more surgeries that use allograft tissue are moving to outpatient settings, which generally have the least procurement infrastructure.
“Every handoff between the tissue bank and the operating room adds time and cost, and none of them add anything to the graft,” said Rhett Barker, CEO of AlloDirect. Barker spent six years in orthopedic sales at Zimmer Biomet, working in the operating room regularly, and founded Flipside Solutions, which was acquired in 2021.
James A. Casavant joined AlloDirect as Chief Technology Officer. He was the founding CTO of a leading SaaS company that provides a tissue and implant tracking platform to hospitals and has built numerous integrations across the healthcare space. “The hard part of this category is the data,” Casavant said. “Well-structured data, like item catalogs across every tissue bank with the documentation attached when the order is placed, and a robust yet easy-to-implement data integration system are what make everything downstream simpler. That is what we are building.”
The pre-seed funding will support continued platform development and the company’s first hires. AlloDirect’s advisory bench includes practicing orthopedic, foot and ankle, and pain management physicians, along with senior medical device operators.
“We look for founders who understand the structure of their industry, not just the surface of it. Rhett spent six years inside this supply chain and came out knowing exactly which part of it does not need to exist,” said Victor Gutwein, Managing Partner at M25. “AlloDirect is grafting software onto a category that has never had any, and the people who benefit are the facilities buying and the patients receiving.”
AlloDirect is headquartered in Valparaiso, Indiana. For more information, visit allo.direct.
M25 is an early-stage software-focused venture firm based in Chicago that invests solely in tech startups headquartered in the Midwest. Since 2015 it has become the region’s most active investor and a frequent seed investor; portfolio companies include Kin Insurance, Loop Returns, Astronomer, Branch Pay, Authenticx and Redi Health. More information is available at m25vc.com.
