Knox raises $6.5M to fast-track FedRAMP authorization and bring AI to U.S. government agencies

Getting approved to sell cloud software to the U.S. government is a long and painful process—one that can take more than three years and cost millions. That’s a serious roadblock for startups and established SaaS vendors alike, especially at a time when agencies are under pressure to adopt newer technologies, including AI.

Knox, a federal managed cloud provider that’s already working with more than 15 government agencies, thinks it has a better way. The company just raised $6.5 million in seed funding led by Felicis, with participation from Ridgeline and Firsthand VC. The goal: make it dramatically faster and easier for SaaS companies to get FedRAMP authorized and into the hands of public sector buyers.

Knox says the new capital will help expand access to its FedRAMP-approved platform, giving more SaaS vendors a chance to break into government, without spending years and millions trying.

With $6.5M in Fresh Funding, Knox Aims to Slash FedRAMP Timelines from Years to 90 Days

FedRAMP is the government’s official security bar for cloud services. It’s mandatory, and it’s a huge hurdle—only around 500 of the 30,000+ SaaS providers in the U.S. have made it through. Knox claims its platform can cut that approval time down to just 90 days, using automation, pre-cleared infrastructure, and a library of digital expert agents built from years of audit data.

Agencies like the Department of Homeland Security, the Treasury Department, and the Marines are already using Knox’s cloud. The company’s AI-powered system, KnoxAI, handles real-time compliance and security, and works across AWS, Azure, and GCP.

“We are on a mission to bring the best technology innovation to our government,” said Knox CEO Irina Denisenko. “Technologies such as AI can drive transformational growth and productivity gains, which are critical for the United States to stay competitive as the global leader.”

Knox was also the team behind Adobe’s federal cloud infrastructure, and its track record helped win over investors.

“Knox is solving one of the most urgent problems in government tech: how to safely accelerate adoption of AI and cloud software at scale,” said Viviana Faga, General Partner at Felicis.

The company’s compliance engine was built with over a decade of experience and is backed by Coalfire, a leading FedRAMP third-party assessor.

“Knox’s mission to modernize government operations through secure, compliant cloud solutions aligns closely with our own commitment,” said Tom Galizia, President at Coalfire.