Coverbase, the industry’s only security-first third-party AI procurement and risk platform, today announced the successful close of a $16.5 million Series A financing round led by Canapi Ventures. This follows a prior $3.5 million seed round led by Fika Ventures, with participation from TTV Capital, Pear VC, Valley Ventures, and Founders You Should Know. With this $20 million, Coverbase is expanding into new verticals and scaling its risk-aware procurement platform beyond third-party risk management into the broader procurement lifecycle, including vendor sourcing, intake, contract management, and purchase order creation.
According to the Verizon Data Breach Investigations Report, the share of breaches involving third parties doubled from 2024 to 2025 to 30%, making it one of the prevalent and costliest threats to businesses today. This growth is directly tied to outdated procurement practices, where highly regulated organizations rely on lengthy questionnaires and box-checking instead of real-time risk evaluation, creating blind spots that adversaries routinely exploit.
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“Traditional procurement isn’t just broken, it’s actively hindering progress. Risk and compliance teams spend countless hours chasing paperwork instead of identifying and mitigating real threats, which slows innovation adoption while leaving critical risks that are being exploited regularly,” said Clarence Chio, CEO and Co-founder of Coverbase. “With AI and agent-based automation, Coverbase is eliminating repetitive, low-value tasks, freeing businesses to focus on reducing risk and accelerating deployment of new technology innovations. We’re excited to partner with Canapi Ventures and tap into their expertise as we evolve our platform into a complete procurement orchestration system.”
Prior to Coverbase, Chio was the Chief Technology Officer and Co-founder of Unit21, which raised over $90M from Google and Tiger Global to fight financial crime. In this role, he experienced firsthand how slow, manual procurement processes limited technology adoption and increased risk. Chio is joined by Co-Founder and Chief Technology Officer Kao Zi Chong, who previously led risk engineering at Stripe. Since launching in 2024, Coverbase has turned the procurement bottleneck into a streamlined process where risk, security, and compliance are embedded into decisions from the start.
Today, more than 40 customers, including Nationwide Insurance, Navy Federal Credit Union, Coinbase, Okta, Bill, Coastal Community Bank, Live Oak Bank, and ServiceTitan, are experiencing a 90-92% reduction in time spent on procurement tasks. This translates to $180 million in procurement person-hours saved across all customers and a dramatically accelerated path to new technology deployments.
“Coverbase has been instrumental in transforming how we manage third-party risk,” said Christelle Chau, VP of Security GRC at Okta. “Their forward-thinking, AI-driven platform has streamlined and modernized our security oversight, allowing us to operate with greater efficiency and confidence.”
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