AI security firm Reco raises $55M as agent-security startups flood the market
AI and SaaS security startup Reco has raised $55 million to expand its platform for monitoring and controlling enterprise AI agents, entering a market now crowded with dozens of similar vendors.
As companies roll out AI agents across their networks at growing speed, security teams face not only the risks posed by the agents themselves but also a crowded field of vendors — at least two dozen, by some counts — all offering some form of AI agent security.
One of them, Reco, announced on Tuesday that it raised $55 million, building on a $30 million Series B round from February. The new round brings the company's total funding to $140 million. Investors included existing customer AT&T through its venture arm, along with Forestay and Quadrille Capital.
From SaaS security to full agent ecosystems
Until last year, Reco mainly sold software to map and secure SaaS and AI platforms. It has since repositioned around a broader offering built on a context graph that connects agents to the apps, people, accounts, and permissions they touch, giving security teams visibility into what an agent can reach and the ability to cut off unnecessary access.
Co-founder and CEO Ofer Klein said the key shift over the past year is that companies are building and deploying AI agents faster than they can track them. At one Fortune 100 customer, Reco's platform uncovered 21,000 agents the company didn't know existed. At a large financial services customer, the startup says it found an agent set up by a former employee that could access Salesforce data and send it to a domain the company had no visibility into.
Rapid growth
Klein said Reco's valuation has more than doubled since the Series B was announced in February, now sitting in the "high hundreds of millions," though he declined to give an exact figure. Annual recurring revenue is currently in the double-digit millions of dollars and is expected to triple this year. The company has more than 100 customers, with financial services accounting for roughly 40% of its business. Reco integrates with more than 280 apps and says new integrations can be added within days. The fresh capital will go toward hiring, sales, partnerships, and customer support.
