Achieving Federal Risk and Authorization Management Program (FedRAMP) certification is a formidable challenge for software vendors aiming to serve U.S. government agencies. The process can span up to three years and incur costs exceeding $3 million, encompassing expenses such as security operations personnel and comprehensive audits. This substantial investment often deters smaller companies from entering the federal market, leaving a gap that larger entities like Palantir have traditionally filled.
Recognizing this barrier, Irina Denisenko founded Knox Systems in 2024 to streamline the FedRAMP authorization process. Knox offers a managed cloud platform that enables software vendors to achieve compliance in approximately three months, significantly reducing both time and financial commitments. This innovative approach has garnered substantial interest, culminating in a recent $6.5 million seed funding round led by Felicis Ventures, with participation from Ridgeline and FirsthandVC.
Denisenko’s inspiration for Knox stemmed from her tenure as Chief Operating Officer at Class.com, an education technology company that secured a contract with the U.S. Air Force. Faced with the daunting prospect of a prolonged and costly FedRAMP certification, Class.com opted to acquire CoSo Cloud, a company already possessing the necessary authorization and managing Adobe’s federal cloud services. This strategic move expedited Class.com’s compliance, achieving certification in just six months. Reflecting on this experience, Denisenko noted, Class would still be getting FedRAMP today if it had pursued the process independently.
Knox’s managed cloud platform continuously monitors applications for software updates, ensuring that any changes remain within compliance standards. In instances where updates deviate from these standards, Knox proactively addresses the issues, thereby mitigating risks for its clients. Denisenko emphasized the complexity and risk associated with compliance, stating, This stuff is legitimately very hard and very risky. We will bear the risk.
The company’s client roster already includes notable names such as Adobe, Class.com, Spacelift, and a provider of large language models (LLMs). Denisenko anticipates that Knox will conclude the year with over a dozen clients operating within its cloud environment.
While Knox’s services address a specific niche, the company faces competition from established players like Palantir. Palantir introduced its FedStart offering two years ago, attracting clients such as Anthropic. Despite this, Knox’s rapid and cost-effective compliance solutions position it as a formidable contender in the federal compliance market.
The recent funding will enable Knox to enhance its platform, expand its client base, and further its mission of simplifying the path to federal compliance for software vendors. By reducing the time and cost associated with FedRAMP certification, Knox aims to democratize access to government contracts, allowing a broader range of companies to contribute to public sector innovation.
