Reco raises $55M as AI agent security startups crowd the market

“AI sprawl” has become a common phrase in tech circles as enterprises deploy AI agents en masse, but the CISOs tasked with securing those agents now face a sprawl of their own: at least two dozen companies, by a quick count of public Crunchbase and PitchBook profiles, sell some form of AI agent security. Some vendors vet the tools agents use, others help companies control what data agents can reach, and still others focus on detection, response, or finding unapproved AI usage.

Until last year, Reco mainly sold software to map and secure SaaS and AI platforms. It has since repositioned around a broader system that uses a context graph to connect agents to apps, people, accounts, and permissions, giving security teams visibility into what an agent can reach and the ability to cut off access it doesn’t need.

Reco co-founder and CEO Ofer Klein said the biggest change over the past year that pushed the startup to broaden its scope is that companies are building and deploying AI agents faster than they can track them. At one Fortune 100 customer, he said, Reco’s platform found 21,000 agents the company didn’t know about. At a large financial services customer, the startup says it identified an agent set up by a former employee that could access Salesforce and share that data with a domain the company couldn’t see.

Reco isn’t alone in framing the urgency this way. HiddenLayer co-founder and CEO Chris Sestito has said that once agents reach production, the scale of their costs and risk goes from theoretical to full scale quickly, and that more than 50 of his customers have AI agents in production touching critical systems and sensitive assets. Separately, AI startup Cymphony said it found about 85,000 files that had become accessible to AI tools and agents at one U.S. public company.

Reco is capitalizing on investor interest in the category: the startup said Tuesday it raised $55 million, building on a $30 million Series B from February. AT&T, a Reco customer, invested through its venture arm, as did Forestay and Quadrille Capital. Klein said the company’s valuation has more than doubled since the Series B, and put it vaguely in the “high hundreds of millions” without sharing specifics. He said annual recurring revenue is currently in the double-digit millions of dollars and is expected to triple this year. The startup has more than 100 customers, with financial services companies accounting for about 40% of the business.

“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 said.

Reco’s bet is that its existing coverage of SaaS apps — and the AI agents those apps increasingly offer — will help it stand out. The company integrates with more than 280 apps, and Klein said new integrations can be added within days. He said the platform uses browser and network signals to find agents operating outside the apps it connects to directly, with controls to inspect prompts and tool calls. Reco will use the new funding for hiring, sales, partnerships, and customer support, bringing its total capital raised to $140 million.

Why it matters

The rush of funding into AI agent security, alongside overlapping claims from rival startups about undiscovered agents and exposed files, signals enterprises are further behind on tracking their own AI agent sprawl than their security budgets currently assume.