The AI security firm Reco has brought in $55 million as demand grows for vendors that promise to protect the tide of AI agents pushing into corporate networks. The company, which once sold software to map and secure SaaS and AI platforms, has shifted its focus to a wider solution that ties agents to apps, people, accounts, and permissions. According to the CEO, the pivot was driven by how quickly companies are building and deploying AI agents beyond their ability to monitor them.
In a sit-down with TechCrunch, Ofer Klein, the co-founder and CEO of the startup, said the biggest change over the last twelve months forced the company to expand its focus. According to him, firms are now putting AI agents into service more quickly than they can follow what is happening with them.
Agents Everywhere, Vendors Everywhere
As businesses begin rolling out AI agents at scale, the saying “AI sprawl” has caught on across tech social media and thought leadership. Now, chief information security officers concerned about safeguarding these swarms are discovering a fresh form of sprawl: vendors stepping forward to offer assistance.
At least two dozen firms appear across public Crunchbase and PitchBook profiles offering some form of AI agent security. A number of these sellers examine the tools that agents employ, while a separate set aim to assist companies in managing what data their agents can access. CrowdStrike is among those constructing detection and response protections for the machines agents operate on. Other vendors concentrate on locating and correcting unauthorized AI use.
While the offerings vary from one another, the assurances they make about discovering and managing agents share a common language. That language includes knowledge graphs, constant watching over systems, protection while software runs, giving users access to tools, and MCP vetting.
A few companies are now changing their offerings to catch up with the trend. Reco used to sell mainly software for mapping and securing SaaS and AI platforms. The company has since shifted its approach to a wider solution that connects agents to apps, people, accounts, and permissions through a context graph. This gives security teams a view of what an agent can reach and lets them block access it does not need.
The Numbers Reco Found
Reco claims its software found a hidden threat at a major financial services firm that Klein said the company’s platform found 21,000 agents at one of its Fortune 100 customers that the company didn’t know anything about. The agent was created by a former employee, giving access to Salesforce data and sharing it with a domain that remained invisible to the company’s own systems.
“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.
Chris Sestito, co-founder and CEO of security startup HiddenLayer, made the case last month for why companies need to secure agent sprawl sooner rather than later. He told TechCrunch that once agents move into production, the scale of their costs and risk shifts from theoretical to “full scale really quickly.” His reasoning rests on three stages of agent adoption:
- Development: Costs and risks remain theoretical, known only to development teams.
- Pilot: Companies test agents on small scales, still within their ability to manage.
- Production: Scale moves from theoretical to full scale really quickly, with costs and risks shifting fast.
Over 50 of Sestito’s customers have AI agents in production touching critical systems and sensitive assets.
Another AI startup called Cymphony has said that at one U.S. public company, it discovered roughly 85,000 files that had become accessible to AI tools and agents.
Investors Back the Pivot
A great deal of investors have turned their attention toward companies capable of generating significant revenue from assisting other businesses in locating and securing agents. Reco has seized upon this interest: On Tuesday, the startup announced it had secured $55 million, adding to its earlier $30 million Series B funding round from February.
The venture arm of AT&T invested in the extension, and it was joined by Forestay and Quadrille Capital.
Klein said the company’s valuation has “more than doubled” since the Series B was first announced in February. He vaguely estimated it in the “high hundreds of millions” though he wouldn’t share specifics. Annual recurring revenue right now is in the “double-digit millions of dollars,” he said, and he expects it to triple this year.
More than 100 customers use the startup’s services, with financial services companies making up roughly 40% of its business.
What Reco Actually Does Now
Reco’s wager rests on its current coverage of SaaS apps and the AI agents those apps are increasingly offering, which it believes will set it apart from the competition. With more than 280 apps integrated, Klein says new connections can be put into place within days.
Outside apps are found through browser and network signals, even when the platform does not connect to them directly inside companies, and it offers controls for inspecting prompts and tool calls.
Funding and What Comes Next
Reco has closed a fresh round of funding, and it plans to put the money toward growing its staff, sales efforts, partnerships, and customer support. With this latest raise, the company’s total capital raised now sits at $140 million.
| Round | Amount | Date |
|---|---|---|
| Series B | $30 million | February |
| Extension | $55 million | Tuesday |
| Total raised | $140 million |
The Problem Behind the Pivot
The way Klein describes the issue points to a real gap. He argued that firms are building and putting AI agents into service faster than they can monitor their activities. This difference in pace drives demand for tools whose job is simply to report on what these agents are doing.
Reco’s context graph approach is designed to connect agents to apps, people, accounts, and permissions, giving security teams a way to see what an agent can reach and cut off access it doesn’t need. The company’s existing integrations with more than 280 apps give it a base to build on. New integrations can be added within days, according to Klein.
The Road Ahead
This year’s revenue is expected to triple, according to Klein. Since the Series B was first announced in February, the valuation has more than doubled.
The move by Reco from SaaS security mapping to governing AI agents across an enterprise ecosystem demonstrates a startup adjusting to the moment. Its $55 million raise indicates that investors agree with the shift.
Source material: “Reco raises $55M as AI agent security startups crowd the market,” TechCrunch.
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