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SAN FRANCISCO, CA, October X, 2025—Coverbase, the industry’s only security-first third-party AI risk and procurement platform, today announced the successful close of a Series A financing round led by Canapi Ventures, following a prior $3.5 million seed round, bringing the company’s total funding to $20 million. This investment will fuel Coverbase’s expansion into new verticals and scale 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 This growth is directly tied to outdated procurement practices, where highly regulated organizations rely on lengthy questionnaires and box-checking instead of real-time risk evaluation, creating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.
“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 Zi Chong Kao, 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, 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.”
“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,” said Michelle Drake, AVP, Information Security Third Party Risk at Navy Federal Credit Union, the world’s largest credit union and an early adopter of Coverbase.
“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,” said Walker Forehand, Co-founder & General Partner at Canapi Ventures. We’re proud to back Coverbase and help it further evolve its offerings and reshape how global enterprises adopt innovation securely and efficiently.”
Looking ahead, Coverbase will expand beyond highly regulated, security-conscious sectors such as financial services, banks, credit unions, insurance companies, and enterprise technology providers, and into healthcare and pharmaceuticals. It will also add new capabilities that extend beyond its focus on third-party risk assessments to include upstream procurement processes. These include vendor sourcing, spend analysis, contract intelligence, and invoicing. By delivering an end-to-end procurement platform, Coverbase will not only streamline vendor payment workflows, it will also ensure enterprises bring in the right capabilities while minimizing risk exposure.
About Coverbase
Founded in 2024, Coverbase delivers the industry’s only AI-native procurement platform that empowers Fortune 500s, banks, and security-first organizations to embed risk management into every supplier decision. By transforming procurement from an operational burden into a strategic advantage, Coverbase customers are achieving a 90-92% reduction in procurement workloads - saving an estimated $180 million in man-hours - and dramatically accelerating the adoption of new technologies. For more information, please visit www.coverbase.com.
About Canapi Ventures
Canapi is a B2B software and financial technology venture and growth equity platform investing in early to growth-stage companies offering disruptive alternatives to outdated business models and technologies. Backed by the Canapi Alliance – a network of over 70 of the leading financial institutions across the United States – Canapi's partners have decades of hands-on experience in financial services. Canapi brings unmatched sector experience and best-in-class knowledge, connections, and credibility to founders. To learn more about Canapi, visit www.canapi.com.
Media Contact:
Doug Fraim