AI-powered Procurement Startup Coverbase Raises $16M in Series A Funding

Coverbase, an AI-powered procurement platform, has successfully secured $16 million in a Series A funding round led by Canapi Ventures. Founded in 2024, San Francisco-based Coverbase is focused on revolutionizing how enterprises evaluate and manage vendors with a primary emphasis on security. Utilizing artificial intelligence, the platform aims to automate and secure the onboarding process for new vendors and suppliers, including software providers, consultants, contractors, and service firms. Notable clients of Coverbase include Nationwide, Coinbase, Okta, and the Navy Federal Credit Union.

Co-founders CEO Clarence Chio and CTO Kao Zi Chong bring extensive experience to the table, with Chio also being a co-founder of Unit21 and Chong having previously served as an engineering manager at Stripe. The duo's vision for Coverbase involves the integration of risk, security, and compliance decision-making at every stage of the procurement process, powered by AI agents that actively perform tasks rather than simply managing workflows. This approach aims to expedite the onboarding process, reduce friction, and enhance security. With breaches involving third parties witnessing a significant increase, investors are showing heightened interest in AI-powered procurement startups.

Coverbase's Series A round saw participation from existing and new investors, including Fika Ventures, TTV Capital, Pear VC, Valley Bank, and Founders You Should Know. The company, which has raised approximately $20 million to date, has experienced a tenfold growth in its customer base since the beginning of 2025. Coverbase operates on a usage-based SaaS pricing model, catering to customers of varying sizes and spanning multiple industries such as financial services, insurance, healthcare, pharmaceuticals, and technology. The company's expansion plans include venturing into telecommunications, critical infrastructure, and other highly regulated sectors. The fresh capital will fuel the expansion into contract management, continuous security monitoring, and a fourfold increase in the sales force.

Coverbase's unique AI-native approach to procurement has garnered attention from investors, with the company being hailed for its potential to transform procurement into a strategic advantage. The startup currently boasts a team of 12 employees, and its roadmap includes further growth and diversification into new sectors. Walker Forehand, president and general partner at Canapi, praised Coverbase for addressing significant pain points in enterprise procurement, particularly in heavily regulated and security-focused sectors.