Artificial intelligence procurement and risk platform startup Coverbase Inc. revealed today that it has raised $16.5 million in new funding to fuel expansion into new segment and scale out its risk-aware procurement platform beyond third-party risk management into the broader procurement lifecycle.

Founded in 2024, Coverbase is a San Francisco-based company that’s attempting to reimagine enterprise procurement by embedding security and risk management into supplier decisions.

The company’s platform is designed to replace legacy procurement systems that typically involve the use of manual forms, redundant questionnaires and siloed workflows. As a replacement, Coverbase offers an AI-native platform that automates vendor intake, risk assessment, contracting and ongoing monitoring.

The platform orchestrates end-to-end procurement workflows, from sourcing and vendor onboarding to contract management and purchase order issuance. It then layers in continuous compliance and security oversight that allow organizations to reduce blind spots and accelerate technology adoption.

Using the platform, Coverbase claims its customers achieve a 90% to 92% reduction in procurement workloads, freeing up teams to focus on strategic rather than administrative tasks.

One notable feature of the platform is what Coverbase calls its “AI-agents first” approach, one where, rather than simply providing workflow tools, intelligent automation is used to perform tasks such as supplier screening, data extraction and control validation.

“Traditional procurement isn’t just broken, it’s actively hindering progress,” said co-founder and Chief Executive Clarence Chio. “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.”

Coverbase has more than 40 customers, including Nationwide Mutual Insurance Co., Navy Federal Credit Union, Coinbase Global Inc., Okta Inc., Bill.com Holdings Inc. and ServiceTitan Inc.

The Series A round was led by Canapi Ventures, with Fika Ventures, TTV Capital, Pear VC, Valley National Bancorp and Founders You Should Know also participating.

“Coverbase is eliminating the inefficiencies in the procurement process at scale with an AI-powered platform that turns vendor onboarding into a competitive advantage,” said Walker Forehand, co-founder and general partner at Canapi Ventures. “In just over one year, the team has delivered measurable return on investment by helping some of the world’s most security-conscious organizations cut procurement timelines while reducing third-party risk.”

The new funding takes the total amount raised by Coverbase to $20 million, as the company had previously raised a seed round of $3.5 million.

Image: Coverbase