Kristen Smith 
Knox Systems has raised $25 million in Series A funding to expand its managed cloud platform designed to help software providers achieve federal security authorization faster and at lower cost.
The funding, which follows a $6.5 million seed round in 2025, will also increase capacity for onboarding new customers into federal environments, Knox Systems said Tuesday.
The latest round was led by B Capital, with participation from M12, Okta Ventures, MongoDB Ventures and other investors.
How Is Knox Changing the FedRAMP Model?
Knox is positioning its platform as an alternative to the traditional Federal Risk and Authorization Management Program process. The company offers a pre-authorized cloud environment intended to shorten that timeline and reduce initial costs, thereby enabling commercial software providers to pursue federal customers.
This approach targets a persistent market gap. While many software-as-a-service products are available commercially, only a small fraction are available for government use due to compliance hurdles.
What Does the Platform Enable?
Knox provides a managed cloud boundary spanning major providers, including Amazon Web Services, Microsoft Azure and Google Cloud, allowing customers to deploy within an environment that already meets federal security requirements.
The platform supports continuous compliance, automated security controls and infrastructure designed for both defense and civilian agency use cases. It also allows companies to maintain their own architectures.
Knox’s infrastructure has supported multiple FedRAMP authorizations, including for AI platforms. Procurement Sciences obtained a FedRAMP Moderate authorization for its Awarded AI platform using the cloud environment, enabling deployment in federal systems handling sensitive data.
Similarly, partnerships with companies such as Kovr.ai have demonstrated accelerated authorization timelines by combining Knox’s cloud boundary with automated compliance capabilities.
How Does Knox Support Federal AI Adoption?
Knox has also expanded its role in enabling government access to SaaS and AI tools through partnerships with distributors such as Carahsoft, which delivers its capabilities to agencies through established contract vehicles.
The managed federal cloud operator currently holds authorizations to operate across multiple federal agencies, including organizations within civilian and national security missions.
