Reco secures $55 million and surpasses 100 clients

Reco announces a funding extension that brings its total raised to $140 million. The company claims to have tens of millions in recurring revenue and over 100 clients, while security leaders and startups warn about the challenges of managing AI agent deployments.

Reco claims tens of millions in ARR and a rising valuation

The new round brings the total raised by Reco to $140 million. According to Ofer Klein, the annual recurring revenue is in the tens of millions of dollars, and he expects it to triple this year. He also notes that the company's valuation has more than doubled since the announcement of the Series B in February. He estimates it imprecisely in the "high hundreds of millions," without providing further details. The company has over 100 clients, with approximately 40% of its business coming from financial services.

Agent volumes and access escaping companies

Ofer Klein reports that companies are creating and deploying AI agents faster than they can keep track of them. At a Fortune 100 client, Reco's platform discovered 21,000 agents whose existence was unknown internally. Reco also claims to have identified, at a financial institution, an agent set up by a former employee, capable of accessing Salesforce and sharing its data with a domain not visible to the company. According to Chris Sestito from HiddenLayer, production deployment leads to a very rapid increase in costs and risks, and more than 50 of its clients have active agents on critical systems as well as on sensitive resources. Cymphony reports observing that around 85,000 files were accessible to AI tools and agents within a U.S. public company. The term AI sprawl has gradually emerged with the acceleration of these deployments, prompting security leaders to turn to an increasing number of providers.

A refocused offering around a contextual graph and integrations

Until last year, Reco focused on mapping and securing SaaS and AI platforms. The company now offers a solution based on a contextual graph that connects agents, applications, people, accounts, and permissions to visualize what an agent can access and cut off unnecessary access. Reco states it integrates with over 280 applications, with the ability to add new integrations in a matter of days, according to Ofer Klein. He specifies that the platform relies on browser and network signals to detect agents outside connected applications and includes request inspection controls and tool call monitoring. He asserts that market demand is for an end-to-end ecosystem, beyond just the agent.

A thriving market of security solutions for AI agents

Public databases of companies list at least two dozen players specializing in AI agent security. The methods vary: some examine the tools used by agents, others monitor the data they access, implement detection and response mechanisms on endpoints running agents, or identify and correct unauthorized usage. The solutions offered share features of discovery and governance, typically based on knowledge graphs, continuous monitoring, runtime security, access management to tools, and MCP validation. CrowdStrike implements detection and response mechanisms directly on workstations.

$55M raised, strategic investors, and a fund utilization plan

Reco announced on Tuesday a raise of $55 million, following a Series B of $30 million announced in February. AT&T, which is a client, invested through its investment arm, alongside Forestay and Quadrille Capital. The company plans to use these funds for recruitment, sales, partnerships, and customer support. The interest from investors in companies helping to discover and secure AI agents is described as significant. Ofer Klein, co-founder and CEO, is driving this development strategy.