Knox Systems Raises $25M in Series A Funding to Accelerate FedRAMP Authorization

Knox Systems, a leading federal AI-managed cloud provider, has secured $25 million in Series A funding, with B Capital and M12, Microsoft's Venture Fund, as the primary contributors, along with Okta Ventures, MongoDB Ventures, Hearst Ventures, and existing investors Felicis, Firsthand, and Ridgeline. The funding, which comes only nine months after a $6.5M seed round in June 2025, will drive Knox's growth and enable the acceleration of FedRAMP authorization for its customers in just 90 days at 90% reduced cost.

This will position Knox as the top platform for running production environments for major commercial brands. The traditional cost of FedRAMP ranges from $2-5 million upfront with annual costs exceeding $1 million, while Knox's pre-authorized environment significantly reduces these expenses, making federal entry feasible for most Enterprise SaaS. The U.S. Government's annual $100 billion software spending contrasts with fewer than 500 available SaaS applications out of over 30,000 commercially available.

Knox's mission is to provide SaaS vendors with the fastest, cost-effective path to FedRAMP authorization. The investment will also facilitate commercial adoption and provide a quicker, more affordable route for SaaS vendors to meet federal security requirements. Knox is leading a transformation in how SaaS companies access the federal market, offering speed and security for government software adoption.

The company operates with the belief that governments should have immediate, secure access to top-quality software. Knox's multi-cloud federal boundary across AWS, Azure, and Google Cloud, and Authorizations to Operate (ATOs) across 15 federal civilian and defense agencies, position it as a major player in the field. Knox Systems caters to top agencies and partners in the defense and civilian sectors, providing FedRAMP authorization in just 90 days, and serves leading AI and SaaS providers such as Adobe, Celonis, OutSystems, Armis, and BigID.