Reco Secures $55M Funding as AI Agent Security Market Intensifies

Reco, an AI security platform, has closed a $55 million funding round as enterprises grapple with the challenges of managing countless AI agents deployed across their infrastructure. The funding underscores growing investor confidence in startups that help organizations discover, monitor, and secure autonomous AI systems operating within their networks.

The Agent Sprawl Challenge#

As companies accelerate AI agent deployments, visibility into these systems has become a critical problem. Reco discovered 21,000 previously unknown agents at one Fortune 100 customer, while competitor Cymphony found approximately 85,000 files at a major U.S. public company that had become exposed to AI tools and agents. The startup also uncovered an agent created by a former employee at a financial services firm with access to sensitive customer relationship data.

"The market demand right now for agent security is not only about the agent itself; it's about the entire ecosystem end-to-end," Reco co-founder and CEO Ofer Klein said in an interview.

A Crowded but Growing Market#

The surge in AI agent security interest has attracted numerous competitors offering overlapping solutions. At least two dozen companies now market some form of agent security, from tools that vet agent capabilities to platforms that restrict data access and detection systems that flag unauthorized usage. Established players like CrowdStrike have launched AI agent security modules, while newer entrants focus on specific aspects of agent governance.

Reco originally built software to secure SaaS platforms and AI tools. The company has recently broadened its approach by developing a context graph—a mapping system that connects agents to applications, personnel, accounts, and permissions—giving security teams insight into what each agent can access and enabling them to revoke unnecessary privileges.

Reco's Competitive Position#

The company's strategy leverages its existing deep integrations across the SaaS ecosystem. Reco maintains integrations with more than 280 applications and can add new ones within days. Its platform uses browser and network signals to detect agents beyond those in directly connected applications, and includes capabilities to inspect agent prompts and tool invocations.

Reco's customer base has grown to over 100 organizations, with financial services firms representing roughly 40% of revenue. Annual recurring revenue sits in the double-digit millions and the startup expects it to triple during the current year. The company's valuation has more than doubled since its $30 million Series B in February, now reaching the "high hundreds of millions," though Klein declined to disclose the exact figure.