Key facts
- Reco has raised $55 million in new funding to bolster its AI agent security solutions.
- The company's platform uses a context graph to connect AI agents to apps, people, accounts, and permissions.
- Reco's platform identified 21,000 unknown AI agents at one Fortune 100 customer.
- A large financial services customer found an agent set up by an ex-employee that could access Salesforce data.
- Reco's valuation has more than doubled since February, estimated in the high hundreds of millions.
- The startup has over 100 customers, with financial services accounting for 40% of its business.
AI security startup Reco has secured $55 million in new funding, building on a previous $30 million Series B round in February, as the market for securing enterprise AI agents rapidly expands. The company's platform aims to address the growing challenge of "AI sprawl" by discovering and governing AI agents that are being deployed across corporate networks.
Reco's solution uses a context graph to connect AI agents to applications, users, accounts, and permissions, providing security teams visibility into what data agents can access and allowing them to cut off unnecessary permissions. According to Reco's co-founder and CEO Ofer Klein, the urgency for such solutions stems from companies deploying AI agents faster than they can track. He cited an instance where Reco's platform found 21,000 unknown agents at a Fortune 100 customer and identified an agent set up by a former employee at a financial services client that could access sensitive Salesforce data.
Klein emphasized that the current market demand for agent security extends "end-to-end" across the entire ecosystem. Other companies in the AI security space, such as HiddenLayer and Cymphony, also highlight the critical need for agent security as these tools increasingly touch production systems and sensitive data. HiddenLayer's CEO noted that over 50 of his customers have AI agents in production touching critical systems, while Cymphony found approximately 85,000 files accessible to AI tools at a U.S. public company.
Reco's latest funding round saw investment from AT&T via its venture arm, as well as from Forestay and Quadrille Capital. Klein stated that Reco's valuation has "more than doubled" since February, now estimated in the "high hundreds of millions." The company reports annual recurring revenue in the "double-digit millions of dollars" and expects it to triple this year. Financial services clients represent about 40% of Reco's customer base. The startup plans to use the new capital for hiring, sales, partnerships, and customer support, bringing its total raised capital to $140 million. Reco's strategy to differentiate itself involves its existing coverage of SaaS apps and the AI agents they offer, with integrations that can be added within days.