Coverbase announced it has raised $20 million in funding as it expands its AI-native procurement and risk management platform. The financing includes a newly closed $16.5 million Series A round led by Canapi Ventures. It follows a prior $3.5 million seed round backed by Fika Ventures, TTV Capital, Pear VC, Valley Ventures, and Founders You Should Know. The company plans to use the capital to broaden its reach into new industry verticals and scale its platform beyond third-party risk management to support sourcing, intake, contract management, and purchase order creation.
The San Francisco-based company positions itself as the first security-first third-party AI procurement and risk platform, designed to address the rising threat landscape linked to vendor ecosystems. According to the Verizon Data Breach Investigations Report, breaches involving third parties doubled from 2024 to 2025, reaching 30 percent and becoming one of the most costly and widespread risks to enterprises. Coverbase attributes this rise to outdated procurement practices rooted in questionnaires and compliance checklists rather than continuous risk intelligence.
Founded by CEO and Co-founder Clarence Chio and Co-founder and CTO Kao Zi Chong, the company aims to integrate security, risk, and compliance into procurement workflows from the beginning. Chio previously served as CTO and Co-founder of Unit21, which raised over $90 million to combat financial crime. Chong formerly led risk engineering at Stripe. Since its launch in 2024, Coverbase has focused on transforming procurement from a bottleneck into an AI- and automation-driven decision-making engine.
The company reports that more than 40 customers, including Nationwide Insurance, Navy Federal Credit Union, Coinbase, Okta, Bill, Coastal Community Bank, Live Oak Bank, and ServiceTitan, have achieved 90 to 92 percent reductions in procurement workload using its platform. Coverbase estimates these efficiencies equate to $180 million in saved procurement labor hours across its customer base and faster deployment of new technologies in security-conscious organizations.
Customer testimonials highlight improvements in risk oversight, procurement speed, and operational efficiency. Investors also cite measurable ROI and rapid adoption among highly regulated industries as factors driving confidence in the company’s growth trajectory.
Coverbase plans to expand beyond financial services, banking, credit unions, insurance, and enterprise technology into additional regulated sectors such as healthcare and pharmaceuticals. The company will also enhance upstream procurement capabilities with features for vendor sourcing, spend analysis, contract intelligence, and invoicing, creating a fully integrated procurement platform that unifies vendor assessment, purchasing, and risk controls.
Founded in 2024, Coverbase builds AI-native procurement tools for Fortune 500 companies, banks, and security-first enterprises. The company’s mission is to embed security and risk evaluation into every supplier interaction while accelerating the adoption of new technologies.
Canapi Ventures, the lead investor in the Series A round, is a venture and growth equity platform focused on B2B software and fintech innovations. Backed by the Canapi Alliance of more than 70 financial institutions, the firm brings deep operational and sector expertise to emerging growth companies.
KEY QUOTES:
“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.”
“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.”
Clarence Chio, CEO and Co-founder of Coverbase
“Coverbase has been instrumental in transforming how we manage third-party risk. Their forward-thinking, AI-driven platform has streamlined and modernized our security oversight, allowing us to operate with greater efficiency and confidence.”
Christelle Chau, VP of Security GRC at Okta
“Working with Coverbase has strengthened our third-party oversight, accelerating assessments and ensuring the highest level of protection for our members through AI-driven automation.”
Michelle Drake, AVP, Information Security Third Party Risk at Navy Federal Credit Union
“Coverbase is eliminating the inefficiencies in the procurement process at scale with an AI-powered platform that turns vendor onboarding into a competitive advantage. In just over one year, the team has delivered measurable ROI by helping some of the world’s most security-conscious organizations cut procurement timelines while reducing third-party risk.”
“We’re proud to back Coverbase and help it further evolve its offerings and reshape how global enterprises adopt innovation securely and efficiently.”
Walker Forehand, Co-founder and General Partner at Canapi Ventures
