Reco Secures $55 Million to Expand AI Agent Security Platform

Enterprises are deploying AI agents across networks at a rapid pace. This wave has created a new challenge known as AI sprawl.

Dozens of startups now sell tools to secure AI agents. Some vet tools, others control data access, and companies like CrowdStrike build device controls.

Reco shifted focus to agents

Reco previously sold software to secure SaaS and AI platforms. The startup repositioned around a context graph connecting agents to apps, people, accounts, and permissions.

Co-founder and CEO Ofer Klein noted that companies build agents faster than they can track. A Fortune 100 customer discovered 21,000 unknown agents using Reco.

A financial services customer found an unauthorized agent set up by an ex-employee. That agent could access Salesforce and share data with an invisible domain.

Investors backed the growing market

Reco raised $55 million on Tuesday. This builds on a $30 million Series B from February. AT&T, Forestay, and Quadrille Capital invested in the extension.

Klein stated that the valuation more than doubled since February. Annual recurring revenue sits in the double-digit millions and is expected to triple this year.

The startup serves over 100 customers. Financial services companies make up about 40% of that business.

Reco integrates with over 280 apps. The platform uses browser and network signals to find agents outside direct app connections.

The startup will use the new capital for hiring, sales, partnerships, and customer support. This latest round brings Reco's total capital raised to $140 million.