Knox Raises Seed Round to Accelerate AI and SaaS Adoption by the Federal Government and Department of Defense

We’re proud to announce our $6.5 million seed round raise. TechCrunch covered the news this morning:

Knox, named after a giant gold storage fort in Kentucky, essentially provides a compliance management platform via a managed cloud that customers can connect their codebase to. The company's software runs a continuous series of tests and audits to identify where the customer's infrastructure, code and security controls are falling short of FedRAMP standards, and either remediates those issues itself or flags them to the customer. It also offers some non-software tools to track and verify policies like personnel training and vendor management.

Knox Raises Round Led by Felicis to Accelerate AI and SaaS Adoption by the Federal Government and DoD

We’re solving one of the most urgent problems in GovTech: how to safely accelerate the adoption of AI and cloud software at scale.

The investment, led by Felicis with participation from Ridgeline and FirsthandVC, will help us unlock thousands of secure, AI-powered SaaS apps for government and DoD use.

We’re on a mission to bring the best technology innovation to our government. Technologies such as AI can drive transformational growth and productivity gains, which is critical for the United States to stay competitive as the global leader. Knox is working closely with key agencies to pioneer a secure AI infrastructure model that enables access to these applications without sacrificing control or security.

Our AI-powered, turnkey platform offers a faster, more agile path to FedRAMP authorization by automating manual processes while also contextualizing decades of operational know-how into digital expert agents.

We’re working closely with the U.S. government to pioneer a secure AI infrastructure model that enables access to SaaS applications without sacrificing control or security. Knox supports all three major hyperscalers and is trusted by more than 15 federal and defense agencies, including the Department of Homeland Security, the Treasury Department, and the Marines.

Thanks again to Viviana Faga and Nancy Wang at Felicis, Ben Walker at Ridgeline and Simon Chan at FirsthandVC for their support as we build.

February 2025

The Stark Reality: Thriving Commercial SaaS vs. Sparse Government Options

The commercial SaaS ecosystem is booming. Major platforms like AWS Marketplace, Microsoft AppSource, Salesforce AppExchange, and SAP Store each host thousands of applications—10,000+, 7,000+, 7,000+, and 3,000+, respectively.

Meanwhile, the FedRAMP Marketplace, the U.S. government’s centralized repository for approved cloud software, lists just 370 apps. The contrast is stark: while enterprises and small businesses benefit from a vast array of software solutions, federal agencies are left with limited options, burdened by slow approval processes and high barriers to entry.

The FedRAMP Bottleneck: A $3M Price Tag and Years of Waiting

For SaaS companies looking to enter the government market, the FedRAMP certification process is a major roadblock. Compliance can cost upwards of $3 million and take up to 3 years to complete. The complexity, expense, and long timelines have made government sales inaccessible to all but the largest players, leaving agencies starved of modern software solutions.

This is the problem Knox Systems set out to solve.

Solving FedRAMP for Ourselves—Then for Others

Years ago, we faced this exact challenge. Our SaaS business was thriving in the commercial sector when a major federal agency expressed interest. But there was a catch: we needed FedRAMP certification. With a price tag exceeding $3 million and an uncertain timeline, it seemed out of reach.

Instead of going the traditional route, we found a faster, more cost-effective solution. By leveraging an existing FedRAMP cloud and optimizing the compliance process, we achieved certification in just six months at a fraction of the cost. This breakthrough unlocked contracts with key federal agencies and financial institutions, doubling our revenue.

Seeing the demand from other SaaS companies struggling with the same barriers, we knew we had to take this solution beyond our own company. Knox Systems was born.

Introducing Knox Systems: FedRAMP in Months, Not Years

Knox Systems provides FedRAMP-as-a-Service, enabling SaaS companies to enter the government market at 90% of the cost and in a fraction of the time compared to traditional certification paths.

Our approach removes the complexity, accelerates approval, and allows software providers to focus on what they do best—building and selling great products. With Knox, companies can bypass the multi-year compliance nightmare and start selling to federal agencies in as little as 90 days.

Why This Matters

The government urgently needs access to the same cutting-edge technology that powers the private sector. Yet, with only 370 approved apps compared to the tens of thousands available commercially, federal agencies are left with outdated tools and limited choices.

By breaking down the barriers to FedRAMP certification, Knox Systems is opening the floodgates for innovation in the public sector. SaaS companies no longer have to sit on the sidelines—Knox empowers them to serve the government quickly, affordably, and compliantly.

If your SaaS company is looking to unlock the $100B+ federal market, Knox Systems is your fastest path forward. The time for government SaaS is now—let’s build it together.

NEW YORK & SAN FRANCISCO--(BUSINESS WIRE)--Knox Systems and Minimus are proud to announce a strategic partnership aimed at accelerating secure software deployment across the U.S. Government.

This collaboration brings together Knox’s FedRAMP-ready cloud platform—trusted by leading SaaS vendors—with Minimus’s secure, minimal, and high-performance microservices infrastructure. Together, the two companies empower software providers to deploy modular, secure, and efficient applications that meet stringent federal compliance standards.

As government agencies rapidly adopt cloud-native architectures and AI-enabled tools, this partnership provides a streamlined path to deliver secure, scalable software to mission-critical environments.

“Minimus is rethinking infrastructure for modern workloads, and their microservices backbone is ideal for FedRAMP environments,” said Irina Denisenko, CEO of Knox Systems. “This partnership will unlock a new class of composable, compliant applications for our government customers—and help developers go from prototype to production in record time.”

“At Minimus, we believe the best infrastructure is invisible—fast, secure, and purpose-built,” said Ben Bernstein, CEO of Minimus. “Knox has fundamentally changed the speed and accessibility of FedRAMP. Together, we’re eliminating friction for security, development, and operations teams to help the best software reach the public sector.”

With this partnership, SaaS companies and systems integrators can now:

• Achieve FedRAMP authorization in as little as 90 days through Knox’s hosted platform
• Deploy modular microservices with Minimus’s secure, minimal container images
• Accelerate innovation in government while reducing operational and compliance overhead

Together, Knox and Minimus are redefining what’s possible in secure cloud delivery for defense, intelligence, and civilian agencies.

Learn more at knoxsystems.com and minimus.io.

About Knox Systems

Knox is the fastest way for SaaS vendors to get FedRAMP-ready and deliver secure software to the U.S. Government. Knox operates the largest and longest-running FedRAMP and DISA-authorized SaaS cloud and helps top vendors serve government missions at speed. Learn more at knoxsystems.com.

About Minimus

Minimus solves the endless treadmill of cloud software vulnerabilities by simply preventing them from existing. Minimus provides secure, minimal container and VM images, rebuilt from scratch daily to eliminate over 95% of CVEs. Founded by the team behind container security pioneer Twistlock, Minimus has raised a $51 million seed round from YL Ventures and Mayfield. The company is headquartered in Baton Rouge with offices in New York, Tel Aviv, and Portland, OR. Visit minimus.io to get started.

Contacts

Melanie Moore
PRforKnox@bospar.com

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The pace of government tech modernization is no longer hypothetical. With the launch of the Department of Defense's Software Fast Track (SWFT)initiative, the "Anything-as-a-Service" (XaaS) pilot program, and a wave of FAR reform, 2025 marks a turning point in federal procurement. For SaaS companies that have hesitated to engage with FedRAMP or DISA due to the cost, complexity, or timeline—this is your moment.

The Old Barriers Are Breaking

For years, FedRAMP has been seen as a compliance gate too costly or time-consuming to pass through. Many high-growth SaaS companies, even those with cutting-edge AI, DevSecOps, or zero-trust capabilities, have opted out of the federal market altogether. But now, the risk of not entering the federal space may be greater than the perceived cost of entry.

New guidance from FedRAMP’s Rev 5, transformative changes to significant change processes, and the momentum behind procurement modernization are all aimed at removing bottlenecks. And yet, even with these shifts, navigating the federal compliance maze still requires expertise, infrastructure, and credibility.

Enter Knox: Compliance WithoutCompromise

Knox exists to eliminate the friction between SaaS innovation and government adoption. Through our fully authorized FedRAMP and DISA-compliant boundary, we offer:

• Accelerated ATO access via inheritance and ready-made compliance packages
• Continuous monitoring and remediation as a service, reducing your internal burden
• A vendor-friendly model that slashes timelines from 18-36 months to under 4 months

We’re already powering FedRAMP success for SaaS companies serving theDoD, the U.S. Air Force, and other federal agencies. And we do it without sacrificing your roadmap, agility, or capital.

Why 2025?

Because the stars have aligned

• SWFT is live. The Pentagon wants faster access to innovative tech, and is building processes to support it.
• XaaS pilot programs are expanding. The government is moving from CapEx to OpEx—and SaaS is the model.
• Budgets are shifting. Agencies are under pressure to modernize faster, with less.
• The compliance landscape is evolving. FedRAMP and DISA are both making space for secure-by-design solutions to scale faster.

Don’t Wait to Get Left Behind

We are entering a golden window for market entry. If you're a mission-driven SaaS company with solutions that belong in the hands of warfighters and federal users, Knox is your fastest path to impact.

Let us handle compliance, so you can focus on what you do best: building great software.

TL;DR

The federal government is rethinking procurement, with programs like SWFT and XaaS making it easier than ever for SaaS companies to break in. Knox offers a FedRAMP- and DISA-compliant boundary with continuous monitoring, allowing SaaS vendors to achieve authorization in months instead of years. 2025 is the moment to act—because federal buyers are ready, and the door is open.

Learn how Knox can help you go FedRAMP-ready, faster than ever. www.knoxsystems.com

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We’re proud to announce that Knox Systems has joined the OpenPolicy ecosystem, a coalition of forward-thinking companies including Wiz, Kiteworks, Armis, and others working to drive innovative cybersecurity, AI and government acquisition policies

As the AI revolution accelerates, the federal government faces a pivotal moment: adopt faster, smarter technologies or risk falling behind.Modernization is no longer a long-term goal. It’s an urgent priority. Agencies need secure, compliant pathways to adopt commercial innovation, especiallyAI-driven solutions, without years of red tape. Innovators and policy makers need to work closely together.

“AI is reshaping every industry, and the public sector is no exception,” said Irina Denisenko, CEO of Knox. “Knox exists to make it easy for innovative SaaS and AI vendors to serve government missions securely and at speed. JoiningOpenPolicy allows us to align our development and GTM to emerging policy and advance that mission alongside other leaders committed to driving thoughtful cybersecurity policies and getting cutting-edge tech into the hands of agencies who need it most.”

“The government can’t afford to get left behind in the AI era,” said Amit Elazari, CEO of OpenPolicy. “Knox brings deep FedRAMP and infrastructure expertise to the network, helping commercial companies overcome the compliance and procurement hurdles that have long slowed public sector innovation.”

Together, Knox and OpenPolicy are:

●     Unlocking access to secure, compliant cloud infrastructure for AI and SaaS

●     Helping federal buyers adopt commercial innovation faster

●     Enabling a more efficient, mission-driven government powered by modern tools

This partnership is a leap forward for government IT, and a step closer to making AI and advanced software truly accessible across the public sector.

Learn more at knoxsystems.com and openpolicy.co.