Reco raises $55M to secure the AI agents enterprises didn't know they had

Reco has raised $55 million to fund its push into AI agent security, a market where at least two dozen vendors are now competing to help CISOs control swarms of agents operating across corporate networks.

The startup announced the round on Tuesday. It builds on a $30 million Series B the company closed in February. AT&T, an existing customer, invested through its venture arm, joined by Forestay and Quadrille Capital. The new funding brings Reco's total capital raised to $140 million.

CEO and co-founder Ofer Klein said the company's valuation has "more than doubled" since the Series B announcement. He put the figure vaguely in the "high hundreds of millions" but declined to share specifics. Annual recurring revenue sits in the "double-digit millions of dollars," he said, and he expects it to triple this year. Reco has more than 100 customers, and financial services companies account for about 40% of the business.

From SaaS security to agent sprawl

Until last year, Reco mostly sold software to map and secure SaaS and AI platforms. It has since repositioned around a broader solution that uses a context graph to connect agents to apps, people, accounts, and permissions. That gives security teams a way to see what an agent can reach and cut off access it doesn't need.

Klein said the biggest change over the past year was that companies are building and deploying AI agents faster than they can keep track of. The evidence is stark. At one of Reco's Fortune 100 customers, the platform found 21,000 agents the company didn't know about. At a large financial services customer, Reco says it identified an agent set up by an ex-employee that could access Salesforce and share that data with a domain the company couldn't see.

"The market demand right now for agent security is not only about the agent itself; it's about the entire ecosystem end-to-end," Klein told TechCrunch in an exclusive interview.

A crowded field

The spending signals how much investor appetite exists for companies that can find and secure agents across the enterprise. A quick scan of public Crunchbase and PitchBook profiles turns up at least two dozen companies selling some form of AI agent security. Some vet the tools agents use. Others help companies control what data their agents can reach. CrowdStrike is building detection and response controls on the devices agents run. Still others focus on finding and resolving unapproved AI usage.

The products differ, but their promises sound similar: knowledge graphs, continuous monitoring, runtime security, tool access controls, MCP vetting. Some vendors are even updating existing products to join the bandwagon, as Reco itself did.

Reco's bet is that its existing coverage of SaaS apps — and the AI agents those apps increasingly offer — will set it apart. The company currently integrates with more than 280 apps, and Klein says new integrations can be added within days. The platform also uses browser and network signals to find agents operating outside the apps it connects to directly, and it includes controls to inspect prompts and tool calls.

The risk is no longer theoretical

Other executives in the space describe the same urgency. Chris Sestito, co-founder and CEO of security startup HiddenLayer, said earlier this month that when agents reach production, the scale of their costs and risk goes from theoretical to "full scale really quickly." He said over 50 of his customers have AI agents in production touching critical systems and sensitive assets.

Cymphony, another AI startup, said that at one U.S. public company it found about 85,000 files that had become accessible to AI tools and agents.

Reco plans to spend the new funding on hiring, sales, partnerships, and customer support. The question hanging over the segment is whether any vendor can differentiate enough to win the sprawl of buyers now facing an equally confusing sprawl of sellers — and Reco's 280-app integration footprint and tripled-revenue target are its opening answer.