Codenotary's $16.5M Fundraise Signals AI's Rise in Securing Supply Chains

HOUSTON, TX – November 25, 2025 – In a move that underscores the escalating urgency to secure digital infrastructure, AI cybersecurity firm Codenotary Inc. has announced a $16.5 million funding round. The investment, sourced from a mix of new and existing backers, is set to accelerate the global expansion of its intelligent trust and security platform, a clear signal that businesses are looking beyond traditional defenses to combat a new generation of threats.

The Houston-based company operates at the heart of one of modern business's most critical vulnerabilities: the software supply chain. As organizations increasingly rely on a complex web of third-party code, open-source libraries, and distributed development teams, the potential for malicious actors to infiltrate systems has grown exponentially. Codenotary's significant capital injection reflects a market that is no longer just aware of this problem, but is actively investing in advanced, automated solutions to solve it.

The New Battlefield: Securing the Software Supply Chain

The digital supply chain has become a primary target for sophisticated cyberattacks. Recent industry analysis paints a stark picture, with reports showing a staggering 150% year-over-year increase in supply chain attacks in 2024. More alarmingly, over 75% of organizations have experienced a cyberattack originating from their software supply chain within the last year. High-profile incidents, like the backdoor discovered in the widely used XZ Utils compression library, have served as a wake-up call, demonstrating how a single compromised component can have devastating ripple effects across the globe.

For years, the standard approach to software security involved static code scanning and periodic vulnerability assessments. These manual, human-driven reviews, while valuable, are proving dangerously inadequate in the face of today's dynamic development environments and AI-powered threats. They create snapshots in time, leaving gaps that can be exploited between audits. This reactive posture is no longer tenable for enterprises, especially those in high-stakes sectors like finance, government, and defense, where the integrity of every line of code is paramount. The sheer volume and complexity of modern software ecosystems demand a more continuous, intelligent, and automated form of assurance.

AI as the Answer: A Shift to Automated Assurance

Codenotary is positioning itself as a leader in this paradigm shift, moving cybersecurity from a manual checklist to what it calls "deterministic, agentic, AI-powered assurance." The company's platform is designed to provide end-to-end visibility and real-time policy enforcement, effectively creating an immutable system of record for every component within a company's IT landscape. By leveraging AI, the system can continuously verify the trust, origin, and integrity of software, automating the detection of unauthorized changes or compliance deviations at machine speed.

"The very robust interest from investors reflects the urgency enterprises feel to modernize how they verify trust, integrity, and compliance across their operations," commented Moshe Bar, CEO of Codenotary. "AI is rewriting the cybersecurity playbook, and our platform is proving essential for organizations that need automation, precision, and continuous assurance at scale."

This is not merely a theoretical advantage. For global defense companies like RUAG, a technology supplier to the Swiss Armed Forces, the practical applications are already delivering significant value. Marcel Schlauss of RUAG noted the tangible benefits, stating, “With Codenotary’s AI technology we have unlocked new use cases for our IT operations which add tremendous value to our efficiency, security and operational excellence.” He specifically highlighted the critical importance of data sovereignty and security when using AI, underscoring the trust placed in Codenotary's solution to handle sensitive defense operations. This real-world application demonstrates how AI-driven trust automation is moving from a concept to a core business enabler.

Fueling Global Growth in High-Stakes Markets

Armed with $16.5 million in new capital, Codenotary is poised for strategic global expansion. The company has explicitly targeted the United Kingdom and key markets in Asia for growth, regions where the demand for robust cybersecurity is surging. The decision is backed by strong market data; the UK's cybersecurity market is projected to exceed $23 billion by 2030, while the Asia Pacific market is forecasted to balloon to over $140 billion in the same timeframe.

This expansion is about more than just entering large markets; it's about targeting regions where regulatory pressures and digital transformation are creating a perfect storm of opportunity. In the UK, for instance, the government's new voluntary Software Security Code of Practice and the forthcoming Cyber Security and Resilience Bill are pushing organizations to adopt more rigorous supply chain security measures. Similarly, rapid digitalization across Asia, coupled with a chronic cybersecurity talent shortage, is driving businesses toward automated solutions that can scale without a proportional increase in headcount. By establishing a stronger presence in these regions, Codenotary aims to capture demand from its core clientele—financial institutions, government agencies, and critical infrastructure providers—who are under immense pressure to secure their expanding digital footprints.

The Regulatory Tailwinds Driving Adoption

The investment in Codenotary is not happening in a vacuum. A powerful undercurrent of government regulation is forcing a sea change in how companies approach software security. Landmark directives like the U.S. Executive Order 14028 and the European Union's Cyber Resilience Act are moving the industry away from self-regulation and toward mandated accountability. These frameworks require software producers to provide evidence of secure development practices, maintain transparency through mechanisms like a Software Bill of Materials (SBOM), and ensure continuous monitoring throughout the software lifecycle.

This regulatory landscape transforms software integrity from a best practice into a legal and commercial necessity. For many organizations, achieving compliance with these evolving standards using traditional tools is a daunting, resource-intensive challenge. AI-powered platforms like Codenotary's offer a pathway to automate much of this work. By creating a tamper-evident ledger of every software asset and its history, the platform helps enterprises not only secure their operations but also generate the audit trails and compliance reports required by regulators. This allows businesses to treat security not as a cost center, but as a demonstrable asset that builds trust with customers and partners.

The infusion of capital into a company like Codenotary is a clear market indicator. It shows that investors, and by extension the enterprise customers they serve, recognize that securing the digital foundation of modern business requires a fundamental rethink. The era of reactive, manual security is giving way to a new model built on proactive, continuous, and automated trust, powered by artificial intelligence.