Why Canapi is Investing in Coverbase

It Takes a Village to Run the Modern Enterprise

Today, companiesrun on companies that run on companies. Recent research suggests that theaverage organization relies on a web of nearly 100 third-party providers toassist in everything from payroll to product.Indeed, digital transformation hasturned just about every business into a constellation of vendors, a trend thatis only accelerating by the unyielding demand for speed, specialization, andcost savings.

This sprawling vendor landscape has turned third-party risk management from a back-office chore into a mission-critical boardroom priority. Continuous onboarding of new service providers, increased regulatory expectations, and high-profile supply chain breaches have made it clear: every additional vendor adds another thread to the fabric of risk in a business.

Enter Coverbase.

TPRM for the Age of AI

Coverbase is redefining third-party risk management (TPRM) for the age of AI, automating the arduous work of assessing vendor, partner, and supplier risk. These represent capabilities banks, insurers, and other regulated enterprises urgently need as their digital ecosystems continue to expand.

In 2025, TPRM is no longer a compliance checkbox; rather, it's a strategic imperative. Recent global cyberattacks, tightening regulations like DORA, and a dramatic increase in vendor-driven outages have forced boardrooms to view third-party relationships as existential risks. Financial institutions in particular face rising threats and regulatory accountability: the banking and securities regulators demand robust controls, and a single third-party failure means regulatory fines, customer distrust, and reputational fallout.

Historically, TPRM has been a manual, weeks-long process, managed through spreadsheets, emails, and fragmented portals—diverting teams from true risk mitigation to administrative grind. A single bank might use hundreds of vendors, each requiring review against thousands of control points, often by a lean staff spending up to 60 hours per month just chasing documentation and compliance artifacts.

But Coverbase has changed the game with its purpose-built TPRM copilot that leverages AI to automate up to 90% of third-party assessment workload. Led by Clarence Chio, who previously co-founded AML platform Unit21, and Zi Chong Kao, an early engineer at Stripe’s Issuing team, Coverbase ingests and reviews security, legal, and compliance documents, automates vendor outreach, and delivers real-time continuous monitoring and risk scoring. All of this is done with explainable AI that provides full audit trails for regulators and managers.

Moreover, the platform allows for continuous monitoring, going beyond point-in-time reviews by tracking vendor security, breach alerts, ESG signals, and SLA adherence in real time. And because teams can tailor workflows to their unique security needs, they’re able to create custom controls, rather than relying on standard forms or generic scoring.

From Obligation to Competitive Advantage

Already, customers have reported massive efficiency gains, reducing TPRM timelines from 4 weeks to hours, managing hundreds of vendors with just two-person teams, and even slashing service SLAs by up to 50% amid mounting regulatory demands.

It is increasingly clear that TPRM is morphing from a static compliance burden into the heart of enterprise vendor management. Next-gen platforms like Coverbase offer a competitive advantage: turning risk and compliance processes into operational strength and enabling organizations to work with the very best vendors securely and efficiently.

As organizations scale their vendor relationships, regulatory scrutiny mounts, and breach costs soar, Coverbase is poised to be the tool of choice for modern risk and compliance teams. The company gives its users not just time back, but clarity, confidence, and control, a mission that makes third-party risk management not just defensible, but truly transformative.

Looking ahead, Coverbase will add new capabilities that extend beyond its focus on third-party risk assessments to include upstream procurement processes. These include vendor sourcing, spend analysis, contract intelligence, and invoicing. By delivering an end-to-end procurement platform, Coverbase will not only move vendors through payment workflows, but it will also ensure enterprises bring in the right capabilities while minimizing risk exposure.

We’re thrilled to invest in Coverbase as it leads the charge into the next era of trusted vendor ecosystems for financial institutions and beyond.